Day trades inc

09/16/2020 22:49

I dont usually make predictions publicly like this but im almost certain tomorrow will be red...due to the market being upset that the fed cant reach its inflation targets until 2023..why is that you ask? Well it has to do with something called the velocity of money. The text book definition is “The velocity of money (or the velocity of circulation of money) is a measure of the number of times that the average unit of currency is used to purchase goods and services within a given time period” its at an all time low right now. It’s basically a measure of how effective printing money is. for example the stimulus checks were said to have a velocity of around 3.6 this means that they had 4,400 dollars worth of inflationary power..Now the Velocity is under 1.0......the money that they put into circulation by buying stocks and financial assests doesnt get spread around as much as it used to. due to the wealth gap being so large these days and Many other issues.. the Feds ability to create inflation is the lowest its ever been. i have attached the graph of the velocity of money the past could decades. the market is very upset about this. we need to have 2% this year not 2023 this just shows how effective the fed really is now...they need to stop buying financial assets Making the rich richer. They should do more stimulus checks(that had a 3.6 velocity) putting money directly into circulation but nah of course they wouldnt do that smh.....good luck tomorrow

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All Comments(68)

C-Dorn09/17/2020 18:01
Thank for input yesterday i cash in put this morning


Apollo09/17/2020 18:00
Very good! We need the stimulus! Congress must act now. the Fed is over heading they are doing everything they can but they are not the economy. I’m trading until the 26th! Since 7th i stopped and now just following news and let the banks closed their positions on the 18 and then see what they open the following week to see the direction for the next 8 Weeks.


💕J.Lyn💕09/17/2020 17:27
the FED isn't incharged of Issuing more stimulus checks, its up to Congress to pass a bill that includes more stimulus checks

Day trades inc09/17/2020 17:28

I didnt say the fed gives stimulus checks but they lend the treasury money and then the treasury gives out the checks so the fed still play an important role in them


DA BEARS09/17/2020 17:25
U actually took the time to write this thesis on webull is freaking hilarious!!!!

Day trades inc09/17/2020 17:26

Its my day job to trade excuse me if i want to help people understand the markets better it has nothing to do with my own ego


DA BEARS09/17/2020 17:23
Lmao Says a lot about a man who feels the Need to stroke his own ego on webull.


air***com09/17/2020 12:54
Why complicate this. ALL THE FED WANTS IS MORE STIMULUS. Period!!!


BullsOnPerade🤘🏽09/17/2020 11:49
Bro, lay off the Adderall

Day trades inc09/17/2020 17:27

what? Too much thinking for you? I was right lol


🇨🇦🚨Data Driven🚨🇨🇦09/17/2020 09:22
Very interesting, and in logic of value, it makes sense. Variables of the world market have brought this on and drastic events. I agree!


Lyn***com09/17/2020 09:01
Thank you so much for that analysis. You are 100% correct. I knew there would be more pain comming as Powells speech continued yesterday, awsome explanation!


EdyShazamYouTube09/17/2020 06:26
or because it's a Thursday... 🤕 notoriously bearish days

Ziggy 09/17/2020 17:16

Is friday bearish?

🇨🇦🚨Data Driven🚨🇨🇦09/17/2020 09:23

that is the NORM 🚑


ssteve940 09/17/2020 05:58
Great analysis, thanks for sharing this!


pbo***com09/17/2020 05:52
amazing analysis! thank you 🙂


Bra***com09/17/2020 05:19
that's monetary inflation 2... there is also M1 and M3....

lowering interest rates will encourage company spending therefore, relieving some of the liquidity that is stuck in "M2". (monetary inflation whithin financial markets) companies have been hoarding cash for the better part of a decade now. they were having inflation and Global inflation problems hardly getting over 1.2 for the last 10 years...

second-year taking economics?


WAspaloy09/17/2020 05:05
It will be green


Max09/17/2020 03:20
Look up the bond king on youtube and educate yourself. The only tools the fed uses are to deflate You dont have to get 2% every year as long as other years do better. 2% is the goal.

Day trades inc09/17/2020 17:32

Yes they ”loan” money to the treasury by buying government bonds but you Know we dont pay the fed back..hence why we are more than 25 trillion in debt. Its still exactly the same as printing. I just said printing so the noobs would understand i know how it works lol

Bra***com09/17/2020 05:11

the FED doesn't print money they go to the treasury and buy USA yields, bonds, equity, and then produces the money. there are two types of inflation. monetary inflation and price inflation. the theory of velocities Elementary...

lowering interest rates will encourage spending by companies. therefore, creating velocity and getting some of the liquidity out of M2

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