Chart Sentiments - Trading Journal (08.10.20)

As of this Covid19 event the US has not printed/created this much money since the financial crisis. What is not shown is the markets are currently near all time highs. With this much debt the country is taking on it would be awful when the bill comes due on reducing the borrowing. Markets will likely have trouble staying up here.

The first chart so how much money the country is borrowing and interesting to see the countries capital reserve is high. Government has a ton of cash to prop markets and economy but will it be enough. Time will tell.

Market GDP is at all time highs relative to stock prices. When this happens it appears prices hit a top. Is this a sign of things to come?

Chart of mutual funds flowing out of equities and being on the sideline. There are likely more retail money in the markets which is another reason to be caution with where prices are right now.

One of the very few Robinhood data charts we will see for the time being since they have stop allowing API of traders on the platform to be seen by public. Yet another confirmation retail traders are piling into the markets.

So FED intervention must has some effects on the markets and this chart provides a very good illustration. With QE4 infinity is our current status hence markets are almost at all time highs. It would be scary to see that down the road stock prices would free fall in a condition like this because the FED has already intervene. A drawback of not allowing price discovery but now that the FED is supporting the economy it would definitely bad if prices free fall.

We are near all time highs with extreme greed. Not bold well for stock prices.

Posted Using LeoFinance