Thursday, March 16, 2017

Understanding The Matrix - US Stocks

The Matrix
Recognizing alignment across stocks allows traders/investors see the movement of capital. Those that follow the movement of capital tend to make better returns than those that don't.

The 12/27/16 Matrix, published on 12/30/16 or 12/31/16, highlighted the capital inflows into US stocks that all the bears missed, and continue to miss even today!

The magenta circles highlight the US stock indices and the date they turned focused bull. Focused bull is the alignment of price and leverage trends.

The Dow, a leading destination for international capital, lead the bullish turn on 04/19/16. It was followed the Russell 2000 (small cap stocks) and Nasdaq 100 (large cap technology stocks) in May and June. The sentiment model, an excellent standalone trading tool, followed next in November. The VIX confirm the bullish transition by generated a focused bear opp in November too. Focused bear opportunities in volatility are bullish for stocks. Only the S&P 500 remained in consolidation (C/P) as stocks entered 2017. In other words, overwhelming evidence suggested that capital flows were pouring into US stocks, while the major of experts and investment public was too scared to buy them.

The Matrix

So the real question is where do US stocks stand in the Matrix today? Join and you'll see that the message of the market is substantially different than headline opinions about US stocks.


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