Thursday, October 3, 2019

#Financials Review $XLF

Financials Review
Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bagholders of trend transitions.

Financials' overall trend, revealed by trends of price, leverage, and time, defined and are discussed in The Matrix for subscribers.

Subscriber Comments

ALIGNMENT (Price & Volume)

Financial composite trend is consolidation (Cons, Cons, Up). Why bother tracking them? Financials' primary trend entered upside alignment 2 months ago. This was bullish. Remember the evolution of the trade: (1) Energy build, (2) Primary trend change, and (3) multiple resets of double/triple alignment. A reset of triple upside alignment would be bullish and call for an escalation of the trade.

ENERGY (Diffusion Index)

Financial lack an energy profile.

Participation (ProIndex)

Financials, lacking a futures contract, cannot be tracked by energy, but they do have Pro & Public Indices. Financial ProIndex has been leading the rally since the 2018 low (see Matrix). Disciplined traders are waiting to see if the ProIndex breaks out to new highs. This will be bullish.

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Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.