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: None
Subscribers often focus on alignment for long, short, and profit-taking decision making. Early cycle trades, however, setup long before alignment. The accumulation/distribution of leverage lead alignment by weeks/months, so we have to remember to follow it. Accumulation/distribution of leverage is generally brought to our attention by concentration, readings above or below 60% or -60%. We can also view what the invisible hand is doing long before these trigger zones are achieved. For example, coffee and palladium, one market is a long, protracted decline, and the other recently smashed by a professional "smash and grab" operation.
Few bulls remain in coffee. The Matrix tells us coffee is extremely extended, thus, meaning only fools would be shorting or short, but few traders follow the flow of time. The flow of leverage suggests time is running out for the shorts. Look at the rally in coffee's DI; it suggest accumulation amid all the pessimism.
Coffee DI (Matrix Line 7, Column J
Not many bulls remain in palladium either. Palladium's DI, however, defines accumulation that's eliminated the blocking dome. How high will accumulation go? We'll see. The sharp run up is enough to power a rally to or above the old high.
Palladium DI (Matrix Line 29, Column J
And then there's natural gas. NG is an easy short, or so says the bears. NG's DI tell us something different. Subscribers should download and look for yourself. Nonsubscribers should consider access, because there's a lot more going on that price, volume, and time. Most investors barely know how to follow price.
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.