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: Cocoa
S&P and VIX correlation continues to climb towards 0 (Matrix Line 62, Line L). This short-term trend suggests growing strain behind the scenes, so do not chase until rho (ρ) crashes. ρ = -1, the historical trending relationship, says the US stock market is back in gear. Gold and US Dollar rho (ρ) continues to crash towards -1. This reading leaves no doubt that leading elements of confidence are not faltering. A sustainable gold rally will not happen without a bear phase in confidence (Matrix Line 103). The cycle of time says the current bull phase of confidence is getting extremely old - the longest on record since 1945, so smart money isn't taking big bets that confidence will remain positive indefinitely. The sharpest declines are often preceded by a general consensus that a market or economy has reached a plateau of prosperity.
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.