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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.
US Dollar and Euro have entered alignment. Political talk, the worse kind because its full of bias, focuses on the 'strength' of the US economy as the global economy slowly implodes. No matter, the highly interconnected global economy, is only connected when it suits our interests, other than that, the US can stand alone. So witness the repeat of the roaring 20's. A stronger dollar will slow the US economy eventually. Politicians can and will blame the Fed, maybe even fire Powell, but there's nothing central banks can do to stop it. Their policies will only create distortions.
Gold is slipping towards weekly reversals that could act as support. A daily alignment reset is needed.
DIs have been updated through December 31th. They'll be updated again on Friday. There's some interest setup unfolding, but it's impossible to make firm interpretations using month old data. We can only watch as the data catches up.
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.