Cycle Trading

On day 8 of the first leg up of the new dollar intermediate cycle the dollar poked above the 80 level. Then it retraced and poked again on day 11 only to print a reversal.

The second attempt to break through the 80 level came on day 17.
The dollar tried for three consecutive days to close above the 80 level and finally printed a reversal on day 19 and declined into the daily cycle low

The dollar is 5 days into the second daily cycle. The dollar’s second daily cycle tends to be more powerful. Also, the first daily cycle was right translated peaking on day 19 and printing a low on day 23. The expectation is for the subsequent daily cycle to print a higher high.

This third attempt began on day 4 of the new daily cycle. I would not be surprised to see a push that breaks above 80.42 forming a weekly swing low then reverses lower into the close.

Such a push should have stocks breaking below the previous daily cycle low and therefore printing a failed daily cycle.

One more panic push lower should help to reset sentiment clearing the way for a bottom to print.

There was over 200 million in buying on strength today, indicating the big boys are getting ready.
Keep in mind that the B.O.W. is not an exact timing tool and we will likely see a few more such days.

Wednesday was day 20 for the Miners daily cycle.

Of the 16 left translated daily cycles since the 2008 low, 13 of them printed a low on or by day 23.

So, the Miners are in the timing band to print a daily cycle low.
Also, it is not uncommon to see miners begin to rally ahead of stocks.
A break above 494 prints a swing low.

It should not be much longer before we see the dollar reverse sending gold higher …