Cycle Trading

The markets are trading sideways waiting on Bernanke’s speech.

The equity daily cycle is young at day 6.
However should Bernanke disappoint the markets, a break below the September 4th daily cycle low would signal a failed daily cycle and an intermediate cycle decline.

Gold has entered the timing band for a daily cycle low.

Gold’s daily cycle stands at day 19.
Like equities, gold has been treading water waiting to hear from Bernanke.
There is still time in gold’s daily cycle for one more push higher before seeking out a daily cycle low.

The dollar has been in decline since 7/25.
As we have discussed, the daily cycle count has several interpretations.

Over the past 5 days, the dollar’s decline has accelerated, which we have seen at other intermediate cycle lows.

At this point, any swing low should mark not only a daily cycle low, but the intermediate cycle low as well.

We are now waiting on Bernanke to see if he can give the markets another lift …