Cycle Trading

Since gold bottomed on Monday it has rallied 3.5% to Thursday’s Close

The Miners have rallied 4.3% to Thursday’s close.

As we discussed last night, gold and precious metals often bottom ahead of the general stock market.

Stocks continued lower today, breaking below the 200 day MA.
Please notice that at the 200 MA was also breached at previous intermediate cycle low.
I would like to see a gap down at the open, followed by a reversal …

Meanwhile, the Big Boys continue to accumulate ahead of the swing.

Recall on Monday how we were looking at the 150 MA for the Dollar?

Well the dollar right up against the 150 MA.
At day 16 the dollar is with in 2 days of entering the timing band for a daily cycle low.
I think that we will see the dollar pierce the 150 MA and then reverse.

Once the dollar reverses, that’s when I think we will see equities deliver an upside break