The Matrix, an array that displays alignment of price & volume (trends) within the cycle of TIME, intermarket money flows, and the flow of sentiment, helps subscribers recognize the Evolution of the Trade for 44 markets. Markets include #stocks, #bonds, #forex, #Bitcoin & #Commodities.
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Stocks are extremely oversold.— Macro Charts (@MacroCharts) July 20, 2021
McClellan Oscillator hit bottom 1% of all days since 2009.
The spike is from massive capitulation selling in Cyclical & Reopening Stocks.
A potential significant contrarian Buy opportunity setting up for Cyclicals soon – watch closely for basing. pic.twitter.com/zYyCbzraZy
The Matrix keeps tracking markets quietly as the majority focuses on short-term, mostly meaningless talking points. Still very little discussion of the bond market rally.
The 3-day decline is being positioned as capitulation by some. That's an interesting and potentially dangerous interpretation when framed against the short term Dividend Yield Cycles DY1 & DY2. DY1 & DY2 are better measures of capitulation, and are nowhere near selling climax levels.
DY1 & DY2 > 2 standard deviations would define a short-term selling climax, i.e. capitulation. DY1 & DY2 are nearly -3. In other words, the setup is more representative a buying than selling climax. Interesting, but that's how the Matrix works. It throws out interpretations that smash consensus talking points. How did the MO Oscillator behave in 1920, 1930, 1937, 1973, 1980, and so on? Drawing conclusions from a limited database within cycles that hasn't been observed for many decades is always dangerous.
Followers of the selling climax interpretation better be careful, but this comment is likely to draw ire rather than further discussions. I encourage subscribers to familiarize themselves with Dividend Yield Cycles, and understand the longer-term risks. The short term DY cycles are excellent timing tools.
Dividend Yield Cycles C1 & C2
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