It is fitting that Gold is the subject of Matrix Trade’s first article.
Gold set the standard for 2016. A quiet messy start to the year leading to an exceptional rally followed by a possibly prolonged deep retracement. If you missed that rally you may have missed THE action in Gold for 2016. But not to worry.. you can trade it again..
And read this email possibly again that we sent out to thousands on March 9th 2016.:
Many will recall the strong similarity of many markets at the end of last year we drew to the 1998-2000 period.. The most striking trade was the Gold ramp in September 1999 where Gold rallied 32% in 10 days on the back of the Washington Gold Agreement. It was exactly this template that enabled us to get heavily long in the last week of January for the recent Gold ramp.
That confidence (or probability) and leverage was enough to be THE Trade of 2016. But thankfully that is only the beginning of the Matrix Trade.
A Matrix is where variables can be combined to create a better or more optimal result.
Where Fundamentals, Intermarket relationships. Technicals and Sentiment (FITS) combine, clarity and therefore probability and success increase significantly. When that clarity combines with volatility. the result is very powerful as evidenced by the Washington Gold Trade. If it FITS..trade it. If it FITS a lot.. trade it a lot.
But when that market is related to other markets that also show similar FITS but at different times or stages… then you have a series of Matrix trades or one larger Matrix and one larger Trade.
That is what is happening now. The Matrix Trade. “
It is why we issued a buy signal at the Oil low and still have that Matrix Trade. It is also why we are confident we can all continue to gain from it…
Part II of the Gold Standard will expand on why we sent out that email. Gold should continue to follow the 1999 template and provide a lead for other markets.