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Gary Mersham's avatar

Thats another interesting way to visually show your liquidity thesis Garrett. I'm guessing the FNGD refererence is to the MicroSectors FANG+ Index -3X Inverse Leveraged ETN?

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Garrett Baldwin's avatar

Yes

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Joe Duarte's avatar

Sho nuff!

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Shane Helwer's avatar

What are you thoughts on the risks in the market that this creates? And how do you predict a “day of reckoning”?

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Garrett Baldwin's avatar

The risk is what it has created the last four years.

We have had four… four-sigma events… which lead to very sharp corrections.

Reckoning would come when there is no trust left in the treasury market. The way I predict it is to use the same equation we have used to get out of the way when our figure goes negative and the FNGD cracks its 20 day moving average

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Shane Helwer's avatar

Thanks Garrett. Makes sense. Great article. Totally agree with your thoughts. Sorry, what is the FNGD? The etf?

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Garrett Baldwin's avatar

https://themoneyprinter.substack.com/p/critical-line-to-watch-fngd-50-day

Yes, it acts as a confirmation signal on our momentum measures.

Not every time that it pops above is it a problem... as our equation still yields a positive result. But when both hit... that's where these multiple sigma events have occurred.

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John Symons's avatar

Insightful. And frightful.

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