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)
New alignments: Retail Stocks
The US economic activity, a service rather than manufacturing based economy, is lead by retail sales and retail stocks. Retail stocks have been underperforming the broader market for 30 weeks, BrST = 0.9. This underperformance, while again past its cyclical mean, have been raising eyebrows of concern for disciplined investors. The US domestic economy, the sole engine of growth for the global economy, has been deteriorating for nearly a year. Yet, the majority of investors think the economy is ok. Underperformance of retail stocks (LTCO < 0) is also confirmed by the underpeformance of junk bonds (LTCO < 0). Neither trends are extremely old, which means economic deterioration will likely worsen in 2019. Follow the Matrix.
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.