2026 TeoTwawKi ... 2032 Darkest Interregnum Message Board

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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 416.74

+1.2%

Dec 26 4:00 PM EST

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To: TobagoJack who wrote (170355)	4/10/2021 2:04:04 AM
From: sense	Read Replies (1) of 218791

"Liquidity is strongly negatively correlated with volatility" and "there is a nonlinear and negative relationship between depth and instantaneous volatility, meaning that the liquidity of equities is likely to shrink whenever the VIX spikes"... Also explains why the focus in manipulation now is on the artificial suppression of volatility... The article notes it means increasing volatility reduces liquidity... but the non-linear relationship means the opposite is also true... that suppressing volatility expands liquidity... so the liquidity of equities is likely to expand whenever the VIX is driven down... In a market that is already dangerously exposed in its leverage ? The article first addresses the nature of risk inherent in excess leverage... and it does so in the context not just of the perception but in the wake of the fact in the recent realization of those risks... and it does that in context of unchecked criminality... which takes us back to the uncorrected banking frauds of 2008... as the proper context in which to consider "markets" now. Having set that up... THEN it goes on to address volatility and its relationship to liquidity... But, oddly, it addresses that volatility/liquidity relationship entirely independently of the prior discussion of leverage and criminality ? What I see, first... is that liquidity (as the velocity of money) that has been artificially suppressed in the real economy by QE... has gravitated to the only venue in which liquidity is encouraged... as its application in the casino is not remotely close to generating a risk to the wealth that is being transferred by QE at the expense of suppressed velocity in money in the real economy, where liquidity as velocity is required to generate new competition for the monopolies running the game... who still expect that the house always wins. What I see, second... is that the artificial suppression of volatility... interacts with the non-linear relationship between volatility and liquidity... to leverage the non-linearity... in result applying leverage on leverage... generating non-linear behaviors in the market. You can easily see that in the stock charts, too... as I have noted a couple of times already... that the "ham-fisted" nature of the interventions observed generates odd artifacts that cannot possibly be mistaken for "normal investor behavior"... The nature of the concentration in effects that leverage in non-linearity generates... is worth understanding And its fairly easy to understand with a bit of visualization... Starting here: Resonance standing wave in pool And following up here: Visualising Frequencies in Slow Mo Easy enough to see those sorts of patterns generated in stock charts, too, of course... but, recently the entire market is being leveraged into moves based on that sort of externally applied inducement...

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