Cycle Trading

After the dramatic sell off of the dollar last Friday, I expected a mini bear flag and then the final plunge into the daily and intermediate cycle low.

However, the dollar decided differently.

Thursday was day 11 for the dollar.
The dollar surged higher on Thursday, day 11, to set a new daily cycle high.

The Schaff Ttend Cycle turned higher today.
This does not mean a new daily cycle has begun.
I view this as the STC merely acknowledging the dollar’s strength.
If the dollar continues higher, this will certainly change things.
But for now, let’s see what we know.

This is the 5 th daily cycle of this current intermediate dollar cycle.
The expectation is for the final daily cycle to from as a left translated failed daily cycle.
The dollar’s daily cycle has been known to stretched to 28 – 30 days so there is still plenty of time for the current cycle to form as a left translated daily cycle.

Certainly today raised my eyebrows, however, the dollar will need to get down to business of selling off to get on track for the expected intermediate cycle low.

The Miners handled the dollar rally well …

The Miner Held up well and maintained the cycle trend line in the face of a strong dollar.

Gold successfully tested the 1600 level today.

Gold could be in the process of setting the daily cycle trend line

I would like to say that no daily cycle lows have been violated.

Cycle analysis suggests that we hang on to the bull unless the previous daily cycle low of is violated.