T H E M A T R I X S T R A T E G Y
To really master the equity market you have to understand all strategies, and then have the ability to examine stocks from the perspective of all possible strategies and at all points in time. For example, whether or not you believe in the merits of technical analysis, the fact of the matter is there are millions of people who rely heavily on technical analysis to make buying and selling decisions in stocks everyday, and hence it must have a profound effect on stock prices. Therefore, you must understand technical analysis in order to truly understand the behavior of stock prices and how they might act in the future. In other words, in order to truly excel as a trader, one really needs to pull themselves out of the limiting nature of a subjective one-system mentality and take themselves to a view high atop the system where one can simply place bets on outcomes. However, this is extremely difficult for most traders, as many continue to believe there is a single system which dominates over others. The fact of the matter remains, that the largest moves in markets and stocks happen when MULTIPLE systems all point to the same thing, and hence the true nature of stock prices and markets lies somewhere in between the ideologies of all of these systems
(Matrix Strategy Map Of The Market outlined in Video #3: In Depth Dissection Of The Supply & Demand Function - What Triggers Buying And Selling Pressure?)
THE MATRIX STRATEGY TRADING COURSE : MASTERING THE MECHANISM OF THE MARKET
1) Introduction To The Matrix Strategy And Why The Stock Market Can Be Mastered
2) Understanding The Fundamental Equation Driving All Stock Prices - Supply & Demand (49 Min. Video)
3) In-Depth Dissection Of The Supply And Demand Functions - What Triggers Buying And Selling Pressure?
(1 Hour 30 Min. Video)
A. Fundamental Analysis
B. Technical Analysis
C. Emotions – Reactions To Breakouts and Breakdowns
D. The Calendar
E. The Need To Raise Capital And Allocate Capital (Due To Fund Inflows And Outflows)
F. Sector Rotation
G. The Need To Chase Performance
H. Overall Market Conditions
I. Economic Data
J. What’s In The News
K. Short - Medium Term Market Expectations Of Product Cycles, Earnings And Economic Data
L. Overall Sector Strength/Momentum
M. Bull/Bear Market
N. Company Debt Loads And Cash Levels (Equity Financing vs. Stock Buybacks)
O. Short Interest (Short Sellers Taking Positions And Covering Positions)
P. Sector Risk/Reward Profiles
4) The Characteristics of "The Big 7” Market Participants And Exactly How They Play The Game
A. Mutual Funds/Pension Funds
B. Hedge Funds
C. Short-Term/Momentum Traders
D. Short Sellers
E. Average Joe
F. Government & The Plunge Protection Team (New Aggressive Buyer In The Market)
G. Goldman Sachs
5) Fundamental Analysis
A. Understanding That Stock Prices Are Used To Change Market Caps
B. Using Yahoo Finance, Earnings Reports, and 10-Qs To Analyze A Company's Fundamentals
In Under 5 Minutes
C. The Gray Areas – Previous and Upcoming Financing Activity, What News Is Coming, Peer Market Caps
D. Using Investor Relations To Gain "Inside" Information
E. Keeping A Running Database Of Fundamentally Strong Companies In Every Sector To Prepare For
All Types Of Sector Rotation and Momentum
6) Technical Analysis
A. Using Candlesticks
B . Selecting Moving Averages
C. Looking At Both Long-Term And Short-Term Charts
D. What Chart Patterns and Parameters Are Highly Reputable And Those You Should Focus On
E. Focusing On Past Price Action To Visualize Current Positioning By Market Participants And
The Effect It Will Have On Present and Future Stock Prices
F. More Importantly: The Psychology Behind The Charts and What's Really Happening Within
Major Technical Formations
7) Using "The Gamut of Perspective" On Every Trade - "The View From All Angles"
8) Learning To Focus On Future Price Action: Visualizing What Market Participants May Do At Higher
And Lower Price Levels
9) Finding The Short-Term "Focal Point" Of The Market And Trading Around It
10) Understanding The Imperfect Flow Of Information Within Markets And Using It To Predict Stock Prices -
"Market Participants With Information Will Always Act On Information Prior To Dissemination"
11) Accepting That Stocks Are Manipulated And Using It To Your Advantage - "Everything That Can Be
Manipulated Will Be Manipulated"
12) One of The Most Important Techniques Used To Predict Future Stock Price Direction: Spotting The
Hidden Buyer And Hidden Seller Using Level 2 and Last Sale
13) Visualizing The Marketplace
A. Visualizing How Each Of "The Big 6" Market Participants Are Positioned Within Specific Stocks And
Sectors
B. Visualizing "The Chain of Demand"
C. Visualizing "The Finite Pool Of Money"
14) Goldman Sachs' Trading Model - A Theoretical Look At How The Most Powerful Player In The Market Approaches
Stocks And How To Anticipate Goldman's Moves
15) Watching The Commodity, Currency and Bond Markets For Signals Of Where Fund Money Is Moving Into
And Out Of And What Movement In Each Market Means
16) How To Calculate Risk/Reward Profiles
A. Using The Mathematics of Numbers And Percentages To Predict Stock Prices
17) Spotting Low Risk/High Reward Stocks And Placing Big Bets On Them
A. Chart And Volume Characteristics
B. The Risk/Reward Benefit Of Buying Stocks No One Wants...Now
C. Learning To "Anticipate Anticipation"
D. Giving Yourself A Time Frame For Possible Action
18) Anticipating Sector Rotation: Being Constantly Aware Of What Sectors Are In Favor, What Aren’t In Favor,
And What Might Be In Favor In The Future
19) Locating "Pivot Points" And Calculating High-Probability Price Targets
20) Betting Against Certainty: Knowing When News Is "Priced In"
21) When Stocks Don't Trade Down On Bad News Or Up On Good News
22) How To Nail Tops And Bottoms
A. Anticipating The Unwinding Of Crowded Trades (Long and Short)
B. Using CNBC To Gauge Fund Positioning
C. Why Tops And Bottoms Are Usually Marked By Extreme News And Volume
D. Recognizing Demand Saturation And Seller Exhaustion
E. Market Top/Bottom Characteristics
23) Calendar Trading - Taking Advantage Of The Most Important Times Of The Year Where Significant Fund
Buying And Selling Creates Abnormally Large Price Swings In Stocks
24) Extracting Significant Stock-Specific Information On Big Up/Down Market Days
25) Using Widely-Owned Stocks As Risk-Tolerance Indicators And Cash-Level Indicators
26) What Economic Data To Focus On And What They Mean In Terms Of Future Stock Prices
27) Using A Top-Down Approach To Work Our Way Down From Global Economy To Stock Plays
28) Using Signals From The Options Pits To Gauge Future Price Action
29) Heavily Shorted Stocks And How To Play Them
A. Taking Note Of Past Price Action To Determine How Aggressive Shorts Are
B. Calling Bottoms In Heavily Shorted Stocks - What To Look For
C. Times Of The Year When Hedge Funds Attack Heavily Shorted Stocks To Induce Squeezes
30) Why Funds Are Highly Addicted To Growth Stocks And Why They All Overshoot
31) The Anatomy Of Momentum Runs
A. The Necessary Ingredients
B. When Short Term Buy Signals Coincide With Long Term Buy Signals
C. The Size Of The Float Relative To Demand
D. The Short-Term 3-Day Momentum Rule
E. Reading Volume And Watching Intraday Price Action
F. Run Killers - Warrants/Possible Secondaries/Convertible Bonds
G. When News Becomes "Priced In"
32) An In-Depth Look At The OTC Market And How To Anticipate Massive Momentum Runs In Penny Stocks
33) Playing Low-Float Stocks
A. Gauging Overall Sector Momentum
B. Anticipating Possible Fund Involvement
C. Times Of The Year When Low Floaters Make Massive Moves
34) The Infamous "Santa Claus Rally"
A. Knowing What Stocks Funds Will Choose To Run Into Year-End
B. Why Specific Stocks Always Run Into Year-End
35) Being Prepared For Price Action Which Goes Against Your Analysis - The Mark Of Every Great Trader