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PREV (the Matrix)
Gold (and palladium) is beginning to receive headline attention. Gold, like bitcoin, tends to be spiritual asset class, so be careful. Play gold by the numbers. The Matrix is clear. The Precious Metals Composite (line 77), a timing tool designed to corrected identify the intermarket flows behind gold (&silver), entered a bull phase four weeks ago. Nearly four weeks of silence before the talking heads noticed. That's how this game works.
The alignment of the precious metals sector is not complete. Gold started it. The juniors and majors followed. Silver has yet to follow. Silver should be leading, but it's not. This is troublesome. Gold's daily alignment (line 28 colum S), 60 days long and extended above 3 standard deviations, warns of reset ahead. Chasers of strength could be disappointed over the short term. Short term consolidation would likely spill over to the gold shares. They're busy catching up with gold, so the relative decline might be limited.
The Matrix should us that 100% of the grain complex has the same directional alignment (line 93). What are the grains telling us about the global economy and trade negotiations?
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.