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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)
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.
The Matrix, currently in a state of transition, has been showing the same two "green" plays for weeks. The 10-year and gold. Trouble is, both options have extended daily alignments (BuST > 2). The 10-year is really extended, while gold is extended. While chasing prices is tempting, its better to wait for reset in February. Consolidation in the form of daily consolidation or downside alignment will knock both the 10-year and gold out of triple upside alignment, but it will also refresh the composite cycle of time. At times, the best play is to understand the trends and wait.
Please note that the precious metals composite's phase is strengthening. Two out of the three sub-components support the current phase. Things get really interesting when all three support.
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.