Full subscription provides full access to the Matrix that's updated daily.
Limited or Free Subscription provides full access to an evaluation Matrix that's updated periodically.
Subscription service has been restarted. Free access to the Evaluation Matrix has not changed. The Evaluation Matrix will be updated periodically.
PREV (the Matrix)
Bears and bulls are screaming buy and sell as confusion in the financial and commodity markets is running high after the Fed meeting. Follow the Matrix and ignore the hype. Most trends (alignment) in place today exist long before the FOMC. Subscribers remain calm because they know trends driven by the invisible hand rather than the Fed.
A lot of talking heads are screaming that the Fed has "thrown in the towel" or given up their independence through capitulation of monetary policy to political interests, Europe, or some other reason. The Fed, just like us, is a follower of the invisible hand. While they talk a good game, it's designed to give the illusion that they control things. That is, until the crap hits the fan, and the world relearns that they're powerless to market forces. With that said, the Fed, unlike some of the talking heads (whom talk too much), recognizes deterioration in the global economy. Subscribers are not necessarily listening to the Fed, but the The Economic Activity Composite (Matrix Line 96-106 and EAC Tab) has been telling us that for months. The EAC displayed economic weakness long before the Fed flip-flop its monetary policy in December. Let the talking heads talk. Yes, the economy is weakening, but this doesn't necessary mean weakness in US stocks. Stock remain in bull phase within broad consolidation. A crash is unlikely if stocks are viewed as a safe haven during public sector crisis.
There lies the focus for subscribers. Timing the public sector crisis unfolding in the periphery economies of Europe, Japan, and so on. The wolf pack will first attack the periphery economies before focusing on the core - the United States. Bearish calls on the US dollar for reason such as US monetary policy, politics, nationalism, or whatever, ignore the reality of international capital flows fleeing Europe as the EU and Euro buckle under the weight of debt during a global economic contraction.
The invisible hand is not stupid. It follows/sets capital flows that drive trends described in the Matrix. Emerging plays are gold, silver, and select commodities as crisis unfolds. Yet, the talking heads focus on FAANG, politics, the Fed, and opinion driven analysis, because its easier than following the invisible hand.
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.
Subscribers are encouraged to submit comments or questions about the Matrix/Insights.
Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.