"What the heck is this thing I'm looking at every day now?"
This one's for you.
Hope you like a little bit of math (not hard).
Let's dive in...
2/16
I'm not one for hiding secrets and trying to profit from them. I'd rather share ideas and grow a community, open source style.
So first I'll go through my thought process.
Then math
Then some charts with latest data from today.
3/16
Thought process for DEDO.
It's all about the liquidity. I admit that all I started with is a correlation, and all these levels you see on my posts are derived from it. That correlation has to do with WRESBAL, a balance sheet metric on FRED fred.stlouisfed.org/series/WRESBAL
It's WRESBAL day(!) so this will be a longer multi-tweet 🧵
I've been charting some interesting correlation between WRESBAL and #stocks...
2/x
Just look at that correlation. Post market is almost right on the money aligned with the overlay. today we got the weekly data print from FRED (next slide)
3/x
Here's the $QQQ chart with today's WRESBAL data drawn in manually. 2nd image is to prove this the value for yesterday on FRED.