Tuesday, June 1, 2021

#Cotton Review $BAL #TT_F

Cotton Review
Those that view the message of the market on a 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.

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

Subscriber Comments

Cotton's primary trend has been up for 9 months and 18%. It's RESET 4 times since 9/20. The RESETs were never discussed as viable (high priority) due to the large bearish energy that coincided with them. $BAL, the ETN proxy for cotton, produced an 18% profit despite the ongoing bearish build. What happens if this build dissipates (releases), and the composite trend reorganizes to triple UP? It significantly increases the odds of acceleration. 18% profit made over a period of months, could be seen in weeks during periods of acceleration within highly focused trends.

The whole point of the Matrix is understanding setups across multiple time frames. Cotton is like any other asset in the Matrix until a high priority setup materializes. If Cotton's DI & DI2 soar, and the composite trend RESETs to triple up, it transitions from just another asset tracked in the Matrix to a high priority setup. Inexperienced traders can't distinguish between high and low priority, so they trade everything as actionable. This leads to disappointment.

If cotton enters a high priority setup, I will wave my hands to attract attention, because the invisible hand is doing it (see 05/27 Cotton Review). There's a time to watch, and a time to play. Playing times are relatively infrequent.

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