Price is a function of Liquidity having nothing to do with value. Consistently a reliable indicator on which to base the timing of trading and investment decisions.
Liquidity is the key determinant of the direction of the stock market.
The aggregate capitalization of any market or market sector, whether stocks, real estate, precious metals, etc., is a function primarily of liquidity, with the value having a secondary impact. The total value of any market is impacted by the current liquidity trend. We determine these current liquidity trends in the US stock market and predict its direction. Liquidity is the relationship between changes in the total trading float of shares in the entire stock market and the change in cash available for investment. Liquidity analysis, in essence, is measuring change in the trading float of stock and tracking the movement of cash.