The 4/27 Weekend Report

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Let’s kick off the weekend report with the weekly dollar chart.

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The dollar just completed week 8 of the weekly cycle.

The weekly chart is characterized by a triangle consolidation that broke to the down side.

Embedded in the consolidation is the current intermediate cycle.
The current weekly cycle has a week 2 peak and a clear and convincing break of the intermediate cycle trend line which signals that the weekly cycle has entered its primary decline.

70% of left translated weekly cycles find their lows between weeks 14 & 20.

That means we can expect the dollar to trend lower for another 6 – 12 weeks. Which is probably 2 more daily cycles after the current daily cycle concludes.
It looks pretty likely that the dollar will break below the previous weekly cycle low, producing a failed intermediate cycle.
A failed intermediate cycle should lead into a yearly cycle low.

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Friday was day 17 for the dollar’s daily cycle.
The dollar tried rallying late Thursday night but was soundly rejected by the declining cycle trend line.
At this point it seems that the dollar is destined to break below the previous daily cycle low.
The dollar’s daily cycle is 18 -25 days, suggesting that we could see the dollar print a low over the next 8 days.

Because the weekly cycle has already entered its primary decline, any subsequent daily cycles left in the current weekly cycles should be left translated and peak before day 10.

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We see the yearly cycle is currently on month 11.
I believe that the dollar will print its yearly cycle low at the end of this intermediate cycle, some time in the next 6 to 12 weeks. That suggests printing a yearly cycle low at 12 – 14 months for the yearly cycle.

Stocks

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The daily equity cycle stands at day 13 on Friday.

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Wednesday saw equities break through the declining cycle trend line declaring a new daily cycle.
I would think that the daily equity cycle will see a half cycle high in the next 8 days.
(This would be about the time the dollar is expected to print a daily cycle low.)

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The weekly equity chart shows a clear and convincing trend line break at week 28.
Equities formed a weekly swing low this week. That will place the equity weekly cycle at week 2 of the new intermediate cycle.

Now I know that equities did not print a failed daily cycle for the previous daily cycle. I have seen an example of a dollar intermediate cycle not printing a failed daily cycle for the concluding daily cycle. I think that the rally was so strong and powerful, that not only were the daily cycle corrections shallow but so was the intermediate cycle correction.

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The yearly equity cycle stands at month 6.
It is currently running resistance at a significant pivot.

With a new intermediate cycle in hand, it is very likely that equities will break through this resistance level and make another leg higher before rolling over into a yearly cycle low.

Gold
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There are several different interpretations to gold’s daily cycle.

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What is apparent is that gold has clear and convincing trend line break signaling a new daily cycle.

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This was week 17 for Gold’s weekly cycle.
Gold has a clear and convincing trend line break.
A break above 1667.10 confirms a new weekly gold cycle.

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Gold appears to have a new daily cycle in hand and will very likely print a weekly swing low next week confirming a new intermediate cycle.

That helps to affirm that December was the yearly cycle low.
I think that it is safe to say the gold will leave the 1600 level behind.

The Miners
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The Miners printed a daily cycle low on Monday of this week.

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Wednesday saw the Miners print a swing low.
Thursday and Friday the Miners gave us a clear trend line break with some follow through.
I think that it is safe to say that Friday was day 4 for the Miners.
The Miners daily cycle runs for 12 – 17 days, suggesting 2 to 3 weeks before the next low.

The intermediate cycle low may have printed this week.

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My studies show that 73% of the time, the Miners print a weekly low between weeks 14 – 17.

This past week was week 17 and the Miners left behind a reversal weekly candle.
A break above 452.05 next week prints a weekly swing low next.
Also, with any bit of strength, the Miners will break above the declining weekly trend line.

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Miners are currently on month 10 of the yearly cycle .
They usually run 12- 14 months for the yearly cycle.
The past three yearly cycles stretched from 15 to 17 months.
Taking into consideration that a new intermediate cycle is about to begin, I think the odds are likely that the Miners will print an early yearly cycle low.

A monthly swing low and a break of the declining monthly cycle trend line will confirm this.
Since the Miners are printing a lower monthly low in April,
The earliest the Miners will be able to print a monthly swing low will be May.
Here is one more observation on the Miners.
They tend to follow a three year cycle.

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They can be as short as 19 months.
They tend to run about 36 months.
Currently we are at 42 months, with a bullish monthly reversal in the process of being printed.

Oil
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The yearly Oil cycle sits at 6 months

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Oil appears to have set the yearly cycle trend line.
The recent yearly cycles have been stretching from 14 to 17 months suggesting more upside.

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Oil appears to be on week 2 of a new weekly cycle.
There is a swing low in place and we are awaiting a break of the declining weekly trend line to confirm a new weekly cycle.

The CRB

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OK people, this is starting to get interesting …

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Friday saw the CRB deliver a clear and convincing trend line break and confirming a new daily cycle.

The CRB daily cycle stands at day 4.
The cycle typically runs 20 – 25 days from trough to trough.

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The Weekly CRB cycle count stands at week 19.
The CRB printed a lower weekly low.
The earliest a weekly low can be printed is next week.
With a break above 560.51, the CRB will form a weekly swing low and break above the declining weekly trend line declaring a new weekly cycle.

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The monthly CRB printed its 3 year low in December.
It appears to have back tested that low.
With a new daily and weekly cycle in hand, the monthly CRB will likely leave behind the back test and make an assault on the declining monthly trend line.

In summary,
Equities and commodities appear to have printed intermediate bottoms and the dollar’s intermediate cycle has entered its primary decline.

The ride may be rough, but we have the wind at our backs and we need to hang on.

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23 responses to “The 4/27 Weekend Report”

  1. Walt Avatar
    Walt

    Excellent report. Thanks for all of your hard work.

  2. smartbullion Avatar
    smartbullion

    great report

  3. ALEX Avatar
    ALEX

    LM

    You always impress me with your research and reporting, great charts and unbiased information. I send my friends here because I think they should NOT be missed..( I love your attention turned toward MINERS and their cycles count too).
    I wish a couple more people would just “Comment” here and say nice job, because they usually DO write back to me and say “LM had an awesome report ” (Like last wkends).

    So I want you to know that you have followers who appreciate your work (even if they’re silent observers : ] Keep up the good work!

    ALEX

    1. han Avatar
      han

      I agree. Have been following this site for a short while and am duly impressed with the analysis and clarity.

    2. Connie Packard Avatar
      Connie Packard

      I’d like to chime in too, and say how much I appreciate LM’s diligent work. It’s always clear, concise, and easy to understand, even for newer traders like myself.
      The details in the visual charts, accompanied by short, precise sentences explaining the counts, is helpful beyond belief.
      I never miss a report.
      Saying “thank you” falls far short of the appreciation I feel for this excellent site.

  4. IheartMrs.Seaver Avatar
    IheartMrs.Seaver

    LM,
    Digging all of your reports and the new website.

    I am one of the guilty ones who mostly hides out in the bushes, reading your reports, without often commenting. Just wanted to give you some props.

    I know you don’t give projections, but I’m going to ask anyway. Do you believe that gold can break above $2000 this intermediate cycle? If not, when do you see it happening?

    Thanks again

  5. ponomo Avatar
    ponomo

    I really enjoy reading your report. Thanks.

  6. Drew Avatar
    Drew

    LM, super report as usual. It is amazing how much time you spend compiling terrific reports, and now right at the appropriate time you are pointing out the opportunities in miners, gold and commodites. Your service is invaluable. One of the most impresive aspects of your reports is your objectivity. There is nothing more dis-heartening than reading those who portend to follow cycle analyis but allow their position bias to influence their reporting and interpretation of cycles. You really are to be commended.

  7. jeff Avatar
    jeff

    LM great job

    my 2 cents is that DOC points out that the dollar daily cycle will usually fail between 5 to 8 days if its going to be left translated

    You dont normally get your reports out first in the evening, but i look at it first just in case there is one more good comment.

    1. likesmoneystudies Avatar
      likesmoneystudies

      Jeff,

      I have not looked at that before and you piqued my curiosity.

      I took a quick trip to the Likesmoney Department of Long-Term Studies and pulled out a dollar daily cycle study from 3/18/08 – 10/27/11.

      I dusted it off and was able to piece this together.

      There were 24 left translated daily cycles between the aforementioned dates.
      12 of 24 daily cycles peaked on days 6, 7, or 8.
      21 of the 24 peaked on or by day 8.

      Now I am curious if the same is true for weekly cycles …

      1. smartbullion Avatar
        smartbullion

        LM, I have to say I have been impressed with the data you provide for cycles every now & then in your reports, such as % of daily cycles that fail etc etc.
        Do you keep database of cycle data for the US dollar, gold, etc?

      2. likesmoneystudies Avatar
        likesmoneystudies

        smartbullion,

        It is an ongoing project of mine to store meaningful bits of data and relevant charts and make them easily accessible
        — a.k.a. the Likesmoney Department of Long-Term Studies 🙂

  8. likesmoneystudies Avatar
    likesmoneystudies

    I would like to thank Walt, smartboullion, Alex, han, Connie Packard, IheartMrs.Seaver, ponomo, Drew, and Jeff.

    I appreciate your kind words of encouragement.

  9. BuyLowandSellHigh Avatar

    Hi LM,

    I read your posts everyday to keep me in check. As always thanks.

    With respect to stocks, we discussed the daily cycle about a month ago.

    Here is the link

    http://likesmoney.dojispace.com/index.php/2012/03/bag-to-the-mailbag-325/

    As far as I can tell, all stocks daily cycles lasted 35-45 days like normal. Starting at the swing low at the end of January, you have the last two cycles ending near day 25 on March 6th and again on April 10th?. I wanted to throw out alternative count for your review. The chart below labels the end of the last cycle as Day 37 (pink color) on March 29th. If the new cycle began on the next day, then this cycle is in fact a failed daily cycle peaking on Day 6. We would then be on Day 24 with another 11-21 days before printing a daily cycle low. This would fall in line with the prerequisite that a failed daily cycle precedes an intermediate cycle trend break.

    What would eliminate this count?

    http://stockcharts.com/h-sc/ui?s=$SPX&p=D&b=5&g=0&id=p06896422912&a=265739776

    Aaron

  10. BuyLowandSellHigh Avatar

    Hi LM,

    Thanks for the daily posts

    I wanted to throw an alternate count for your review. You have the last two daily cycles ending on Day 25 and Day 24 respectively. What about the option that the last daily cycle did not end until Day 38 on (March 26th 2012). This would fall in line with the normal length of a stock cycle. If you would humor me further, this would mean that a failed daily cycle did occur and we are currently on Day 24. This count would fall in line with the idea that a failed daily cycle should precede an intermediate cycle trend break. We would then be looking at a potential cycle peak on Day 6 with a cycle low due in the next 11-21 days.

    What do you think?

    What would invalidate this alternate count?

    I tried to post a link to my chart, but my comment completely disappeared after hitting the “post comment” button below

    Thanks,
    Aaron

    1. likesmoneystudies Avatar
      likesmoneystudies

      Aaron,

      My guess is that since you had some links in your previous post, the wordpress spam filter spammed it.

      You comment was waiting in my spam folder and I recovered it and approved it.

      So, on to your question regarding if equities are in a failed daily cycle or not.

      I believe that after the 12/19 half cycle low, the nature of this intermediate cycle changed.

      Due to the nature of the intermediate cycle, daily cycle corrections were brief and mild.

      An accelerated trend line was needed to acknowledge the day 43 dcl on 1/30.

      I also believe that an accelerated trend line is needed to acknowledge a shortened 25 day dcl on 3/6.

      Part of what convinces me to label 3/6 as a dcl is the severity of the correction, which was more severe than the dcl on 1/30.

      Your labeling of 3/23 as day 37 means that it is a daily cycle low.

      The 4/10 low would be, by definition, a failed daily cycle based on your count.

      To me, the 4/23 test of the 4/10 low is significant.
      Had the 4/23 test broke below the 4/10 low then equities would clearly be in the grip of an intermediate cycle decline.

      But that 4/23 higher low was followed by a declining trend line break.

      It is that break above the declining trend line that has me labeling 4/10 as the dcl of another shortened cycle — lasting 24 days.

      Based on this, I expect the SPX to break to new highs above the previous high of 1422.38.

      Should the SPX failed to break above 1422.38 and sells off, then your count will likely be adopted.

      1. BuyLowandSellHigh Avatar

        Thanks LM,

        I just did not want to get caught on the wrong side of things. If my count is accurate than we could have a left translated cycle with a peak at day 6. As I was writing the post, the thought of breaking above the previous cycle high and breaking back above the previous cycle low may invalidate this count. Another point I wondered about is whether the end of the cycle needs to close below 1357
        For example:
        1. 03/26/12: Start of daily cycle-1397
        2. 04/02/12: Current cycle peak (day 6): 1422
        3. 04/10/12: Current cycle low (day 11): 1357

        Is that required to end a cycle that is left translated and in decline?

        Aaron

  11. Cory Avatar
    Cory

    LM – keep rocking. Thanks for staying neutral and objective. There is brilliance in your simplicity. Your passion is evident in every report. All the best.

  12. Ms C Avatar
    Ms C

    Thanks LM.

  13. drrock Avatar
    drrock

    one of the silent observers…coming out to thank you for your analysis.

    you do a great job and present it well. technical, but clean and easy for a novice like me to understand. You have taught me a lot about cycles. Thanks.

  14. Jack Dog Avatar
    Jack Dog

    Likesmoney,
    Thanks for the report.

  15. bigblue Avatar
    bigblue

    Great blog likesmoney! Two thumbs way up!

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