Cycle Trading

We continue to await to hear what Bernanke will say on Friday and how the markets will react.
I do not think that he will announce Q3 three (of whatever he will call it)

So let’s look at a few charts.

The dollar looks to have printed a low last Thursday and now seems to be waiting on Ben before confirming a new daily cycle. A break above the declining cycle trend line confirms a new daily cycle.

The other scenario would be for the dollar to have a panic drop. At this late stage in the daily cycle such a drop would likely be short and reversed quickly.

Both scenarios call for the dollar to rally.

A rallying dollar will likely send equities lower.

Stocks closed below the 1400 level for the first time since early August.
Stocks have peaked on day 20 and have been in decline since brining equities to day 27 today.

If the dollar does begin to rally that will likely send stocks lower still.

— The Miners are getting to the latter stage of their timing band for a low.

Miners tend to print daily cycle lows for right translated cycles every 16 – 28 days.

At this late stage, a swing low for the Miners should be bought because it will likely mark the daily cycle low.

So now we wait until tomorrow to see what tricks Ben may have …