In an article I published last week, I documented and claimed that sentiment trumps everything. I showed that both the stock market and the gold market were at EXTREMES of bearish sentiment and claimed that they were ready to enter a very bullish phase. And for the moment, anyway, it appears I may have been correct. Some readers have suggested to me that the stock market is about to unrattle and fall apart. I guess they don’t think much of my sentiment analysis. LOL But perhaps this information regarding global liquidity will open their eyes. This chart is definitely not my finest presentation, but for those interested and motivated to see something enlightening, the information is all there waiting for their consideration. To cut to the chase, the chart shows that Central Banks, worldwide, are back to printing money right now and at a furious pace. So far, this behavior has led to tremendous rallies in the SP-500. I believe it is contributing to our current rally. i.e. the stock markets are not going to be allowed to fall. But this behavior does come with a price tag, as it is an insane attempt to get something for nothing. The price tag, ultimately, will be that nations default and go bankrupt. Currencies are devalued and then devalued even more……including the US Dollar. And commodities, like gold and silver, will continue to appreciate in price as they are “things” that are not paper (like money). The two reasons the stock market will continue higher are sentiment and liquidity.

Source