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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)
Undisciplined traders are jumping in and out of stocks, because they're not listening to the message of the market. The sentiment and VIX models have not flipped, so who cares what the talking heads say the Fed is doing to stocks and the economy. These models follows alignment, time, and energy. The Matrix cutout shows us alignment - bull trend. Time (BuST) and energy (WASo) are available to subscribers. Subscribers should be asking: (1) Are BuST stretched (line 54 and 59, column O)? BuST > 2 defined stretched cycles of time. (2) Does sentiment display the necessary energy to fuel the trend? That is, is everyone optimistic or pessimistic? Extreme optimism is bad. Pessimism is good, as there's plenty of bears to fuel the rally, those listening to bearish the talking heads rather than the message of the market. WASo measures sentiment. Remember, the majority is generally on the wrong side of the trade at the wrong time.
Sentiment & VIX Model
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.