Wednesday, January 2, 2019

Quality Spread Review #Investing #Bonds #Cycles

Quality Spread Review
Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bagholders of trend transitions.

Quality Spread's overall trend, revealed by trends of price, leverage, and time, defined and are discussed in the long term cycles section of The Matrix for subscribers.

Subscriber Comments

The vast majority of the time, the computer writes "No comment." under comments in the long term cycle section of the Matrix. When that changes, trader AND investors should be taking a look. The Matrix is not all about short-term trading. Quite the contrary, it's about trading, investing, and understanding the broad capital flow within and between markets. All markets follow cycles. These cycles are defined for us by long term cycle Z-Scores, C1, C2...C5, and C6. In general, the Matrix focuses on short-, intermediate-, and long-term cycles, largely because we don't live long enough to experience C5, and C6.

Back to quality spreads. Quality spreads are an important measure of liquidity and risk taking within the US and global economy. They're a liquidity indicator of economic and financial problems often experienced during panics and crises. Most of the time, the computer writes No Comment, but that changed recently to "At least intermediate term rally for quality spread probable." What does that mean? The relative spread between junk and high grade corporate bonds is distorted or statistically stretched. In others, we have to look at it.

Please consider a subscription to access content, because long-term cycles are extremely important.



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Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.