We begin with a praxeology-based assessment of the fundamentals and technicals.  With intervention in the economy and markets approaching a multi-generational zenith, it is important to understand the impact of money supply, new technology on market structure and liquidity, intermarket relationships, and the interaction among global power centers.  Against this background, we assess trader psychology from the perspective of fear, greed and equilibrium, using a number of proprietary and classical technical analysis methods.  Especially, we watch for patterns in price and volume at pre-determined critical inflection points to assess when traders at the margin might be setting off the cascading series of events down the fractal time-price hierarchy that lead to larger market swings.

We also focus on money flows and methods that track the footprints of large players, or so-called “smart money”.  Necessarily, this includes a reliance on models and, while at odds with orthodox praxeology, we use only those that have demonstrated robustness across varying markets and time frames.  When something fails because of systemic change, it is quickly discarded such that a strong recency bias keeps us “honest”. 

Navigating the markets in the current environment requires at once an understanding of economics, politics, trader psychology and technical analysis.  This is what we synthesize daily in The Precision Report.