Cycle Trading

The dollar normally finds its cycle low around weeks 18 – 22.

This IC cycle already has a week 13 peak and is beginning to roll over.

The dollar is on week 15 of the intermediate cycle and as formed a weekly swing high.

So it is very likely that this is the final daily cycle for this intermediate cycle.

Final daily cycles are characterized by printing a left translated, failed cycle.

For the dollar, that would mean a peak before day 12 and then breaking below the previous daily cycle low.

The dollar printed its daily cycle low on Thursday.

Friday saw the dollar form a swing low and broke the declining trend line to declare a new daily cycle.

Monday the dollar broke below the previous daily cycle low and then reversed and closed higher for the day.

Unless the dollar surpasses Friday’s high (soon), I will view this as a new daily cycle with Tuesday as day three.

So far this new daily cycle has peaked on day one.
Had a big Gap down on Monday, only to close up for the day.
And Tuesday, closed lower again.

Monday’s gap down broke below the previous daily cycle low, signaling that this new daily cycle has already rolled over. That suggests the dollar could tend lower for another 15 plus days.

A failed dollar daily cycle would correspond to a new daily cycle for gold

That would make Friday a day 16 daily cycle low.
Monday formed the swing low and Tuesday broke the declining cycle trend line.

Equities responded to a weaker dollar on Tuesday.

Tuesday was day 6 for the equity daily cycle. It appears that a daily cycle trend may have been set

Even with talk of the possibility of bailing out Italy being in the news, Stocks had a big day up 1.17% and are piecing together a rally.