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Subscription service has been restarted. Free access to the Evaluation Matrix has not changed. The Evaluation Matrix will be updated periodically.
PREV (the Matrix)
Changes to Matrix:
Extending primary (monthly) database into 90's, 80's, 70's, 60's, and 50's. This increases the number of bull and bear impulse above 20 in many markets.
The Commitments of Traders report will likely resume publication in the coming weeks, but hey, it's the government, so there's no guarantees. Return of the diffusion index will be welcome event. It's an absolutely critical tools that helps identify early and late life cycle trades. Trading without DI is similar to planning battle strategy without scouts, drones, and/or spy satellites.
Heavy buying in Apple and and Boeing account for nearly all of the Dow Industrials pre-market strength. Chasing stocks higher could be a disappointment until the sentiment and VIX model turn. Many of the key economic and market intermarket flows are bearish, but that point is easy to ignore when prices are rallying. Capital flows from Europe are driving this rally, the Dow's leadership confirms it. Capital flows held up the United States during the roaring 20's when many of the periphery economies were experiencing economic hardship.
BuST & BrST > 0, observations made in the daily, weekly, or monthly time frames, warn investors where upside or downside alignments are pushing against the cycle of time. The computer defines these alignments as Early, Mid, or Late. Late cycle alignments are vulnerable to reversal. A daily BuST or BrST > 2, for example, suggests a growing probability of consolidation ahead even in Early and Mid cycle alignments.
Using the Matrix
The value of the Matrix is far more than a study of price. Trends are a function of price, volume (force), volatility, and TIME. The order of their importance is as follows: (1) TIME, (2) volatility, (3) volume & price alignment. Volume and price alignment, a setup that triggers action, favors Grade A & B, early cycle markets under high compression (↓COM). ↓COM suggests extremely low volatility, a quiet trend ready to explode into high compression (↑EXP). Weekly and monthly breakout signals are not finalized until the end of the week and month, respectively. Signals generated before that could be temporary. Keep this in mind when reading alignment.
Suggested Reading: The Cycle of Accumulation and Distribution (CAD), Leverage Oscillator (LTLO), Diffusion Index (DI), Volatility Bandwidth (BW), Compression (COM), Expansion (EXP), Alignment, Upside Alignment, Downside Alignment, Sentiment Model, Intermarket Trends, VIX Model, Economic Activity Composite, Long Term Cycles.
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Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.