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PREV (the Matrix)
The junior (gold shares) have reentered alignment, changing colors from green to yellow. This is normal. Subscribers should track the precious metal composite (PMC) and its sub components to gauge the strength of the movement into precious metals (gold and silver). The PMC, showing decisive direction flows, as 2 out 3 sub components aligned in the same direction. 3 out 3 is the strongest. Line 75 suggests the juniors are leading the majors. Stop guessing. Tune out the promoters and follow the invisible hand.
Soybeans and platinum have entered alignment. Soy, a weaker alignment - likely needs more time to alignment the weekly trend, hints that the US-China trade negotiations, at best, will result in an easy compromise. It will be sold hard as win for both sides, but this type of compromise, one that substitutes money for structural reforms, could very well leave agricultural tariffs in place. Please watch soybeans alignment and technical picture closely.
The public\pro indices suggest moderate negative divergence in price and pro index, or professional selling. This trend will be watched closely. A breakdown of the pro index to new lows ahead of price, a setup displayed in markets like cotton, would be significant warning.
Soybeans Public & Pro Index
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.