Cycle Trading

Many Fed members said that aid would be needed “fairly soon” if the economy doesn’t improve.
Minutes after the release of the minutes from the Federal Reserve’s latest meeting from August 1 st saw the dollar tumble and stocks rally.

But bonds did not seem to buy into it.

TLT printed a daily cycle low on day 20 which was last Thursday.
Today a swing low formed along with a trend line break declaring today day 4 of the new daily cycle. And quite likely a new intermediate cycle.

Bonds are acting like a Canary in a Coal Mine signaling a new dollar daily cycle is due.

In contrast to bonds, the dollar dropped today.

At day 24, the dollar’s daily cycle is due to print soon.
The dollar is also running into a significant support zone.

With the daily cycle being so deep in the daily cycle coupled with the support it is not likely the dollar will be able to do more than make a marginal break before reversing and beginning a new daily cycle.

Supportive of this is the SOS print for Wednesday.

It is interesting to note that the market leader and largest company in the world topped the SOS list followed by the Q’s and the SPY.

Getting back to the Fed minutes. Nothing new was said, just more talk.

I think that once the dust settles …

this will look like the same old song and dance…