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PREV (the Matrix)
US stocks continue to climb higher. The Dow Industrials, S&P 500, and Nasdaq 100 have entered triple alignment. The later two, the ones will lower composite BuST, are better setups. The public is scared to buy stocks, but the composite alignments are not old. S&P 500 and Nasdaq 100 have aging daily alignments, but their weekly and monthly trends are extremely young. A bigger reset has taken place.
Palladium continues tracking/leading the US rally, so rather than chasing stocks, I'm letting palladium ride longer. Palladium, either leading or following US stocks, will reset, but it could happen at higher prices.
The few early cycle plays not pushing against time cotton, corn, wheat, and the gold shares. The gold shares have the highest composite time scores in the Matrix. The only thing limiting their near term action could be gold extended daily trend; it's daily BuST = 3.17. Gold could be primed an upside burst after a daily alignment reset. This would benefit the gold shares.
Strength of US and global economy has become a daily discussion. The EAC tell us without bias that the US economy's bull phase has entered its 11th week (line 98, column H). The bull phase, however, is weakening. How do we know that? LTCO > 0 ( line 98, column E), but ITCO < 0 (line 98, column D). The intermediate term oscillator is declining. You should not expect the Fed to raise rates as long as ITCO < 0.
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.