The professional investors must profit by anticipating future trends and events rather than chasing old news. This is done by following the invisible hand or message of the market. That message, the simultaneous study of the the cycle of accumulation and distribution (trend), the distribution, movement, and participation of leverage (leverage), time/cycles, and human behavior that excludes opinions is defined below:
UGA closed at 35.72 through 12/16.
Please do not trivial this message as falling gas prices are good for households and spending. This trend, similar to the setup displayed in late 20's and mid 2000's, is a warning. The economy, driven by failing debt, is melting down at the periphery.
¹ The intermediate-term close oscillator (ITCO) and long-term close oscillator (LTCO) define a market's trend oscillators and impulse wave. For example, when both trend oscillators are positive and negative, they define up and down impulse waves, respectively. Mix readings, such as a positive ITCO and a negative LTCO, suggest a market transitioning up to down, and vice versa.
² The relationship between DI and price defines accumulation and distribution. Positive (direct) and negative (inverse) relationships as price rallies indicate accumulation and distribution accumulation, respectively. Positive (direct) and negative (inverse) relationships as price declines indicate distribution and accumulation, respectively. In general, bulls purchase accumulation and sell and/or reduce risk into distribution. Bears sell distribution and/or reduce risk into accumulation.
³ Bull and bear phases are defined as positive to negative and negative to positive diffusion index (DI) oscillations.
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