Market Liquidity 4/25/2007
Previous posts have described the close statistical correlation between the revenue stream of collections by the Treasury, taxes, and the liquidity or free cash available to the stock market. It's a supply and demand thing. When the Treasurie's collections substantially exceed those of the same date in a prior year, one can expect a positive movement in the Stock Market and vise-versa.
4/25/2007 6.6b 185b 1.283t 8.748t
4/25/2006 2.3b 166b 1.187t 8.270t
187% 11.4% 8.1% 5.8%
Day Month Year National Debt
April the 17th has passed, and this looks like a good boost over last year. There are other factors of course, but statisticly speaking the daily year over bump should be reflected in the market not in weeks but in a few days, all else being equal. Prehaps Spring is in the air.
I sit here in the morning sun with a low pressure storm in the Gulf of Alaska and two lows to the West. My old altimiter, sitting on the window sill, reads 500 feet higher than I know my kitchen table to be, telling me that the barometer is dropping, but this is as yet a thin relatively higher pressure ridge, probably created by the advection and heating effect of percipitation in the mountains across the bay. They call this the "Bannana Belt." Indeed, Spring is in the air.
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