I didn’t understand 90% of what you wrote but I appreciate the detail and information. Hopefully one I can understand what this means and how to pay a few bills off of it. Cheers!
I wish you can go into the details of how to measure the quantity of money, how the quantity of money has evolved over the past 6m, 3m and 1m, and a forecast
There isn’t a single datapoint for liquidity which is why it’s difficult to map in a single indicator.
But yes functionally if liquidity is positive then bullish and opposite if bearish. However remember there are times like 2020 when macro liquidity increases a ton but assets go down because growth is collapsing. So there are qualifications
Thanks for your response. None of the datapoints that could be used as a proxy for liquidity are sensitive enough to generate enough signals trade imo, e.g. CB balance sheets, M2, interest rates, real yields, currency swaps (USD/JPY - this could work?). Perhaps VIX could be used?
Great article Sir .I recently discovered your Substack and found your articles incredibly helpful—thank you!I have a question regarding trade execution. I often struggle with executing my trades optimally. Sometimes I buy too early, while other times I wait for a price level that never materializes. I haven’t been able to find effective strategies for execution.Could you recommend any books or articles on this topic?
I didn’t understand 90% of what you wrote but I appreciate the detail and information. Hopefully one I can understand what this means and how to pay a few bills off of it. Cheers!
plug it into chatgpt
Great write up as always.
thank you !
Didnt understand but keep the conclusions 😂
I wish you can go into the details of how to measure the quantity of money, how the quantity of money has evolved over the past 6m, 3m and 1m, and a forecast
What would you use as a proxy for liquidity impulse for a trading view script?
Referring specifically wrt this section:
IF macro liquidity = positive THEN trigger bullish. IF macro liquidity = negative THEN triggers bearish.
There isn’t a single datapoint for liquidity which is why it’s difficult to map in a single indicator.
But yes functionally if liquidity is positive then bullish and opposite if bearish. However remember there are times like 2020 when macro liquidity increases a ton but assets go down because growth is collapsing. So there are qualifications
Read all the macro primers on this
But that’s not pure liquidity
There’s limitations
Thanks for your response. None of the datapoints that could be used as a proxy for liquidity are sensitive enough to generate enough signals trade imo, e.g. CB balance sheets, M2, interest rates, real yields, currency swaps (USD/JPY - this could work?). Perhaps VIX could be used?
If you’re trying to find a super rough proxy, use implied volatility with the vix, move index, fx vol and crude vol
Great article Sir .I recently discovered your Substack and found your articles incredibly helpful—thank you!I have a question regarding trade execution. I often struggle with executing my trades optimally. Sometimes I buy too early, while other times I wait for a price level that never materializes. I haven’t been able to find effective strategies for execution.Could you recommend any books or articles on this topic?
Thank you for your assistance!
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