Cycle Trading

Wednesday was day three for the equity daily cycle.

And we see that the new cycle continues to make progress.
We are still waiting on a follow through day of at least 1.5% and a break of the declining trend line to confirm a new intermediate cycle.

I think equities will print that follow through day when the dollar breaks below its daily cycle trend line .

The dollar rallied early this morning on news out of Europe.
And now we see that the dollar gave up almost all of the day’s gain.

I believe that the gravitational pull of the dollar daily cycle decline prevented the dollar to rally to new highs.

I think that commodities are sniffing out the dollar’s imminent decline.
We see that silver, in particular, has printed another higher high on day 12.

This increases the odds that silver is forming as a right translated daily cycle with the expectation of printing higher highs.

Commodities in generally also look bullish.

The CCI delivered a clear and convincing break of the declining intermediate cycle trend line confirming a new intermediate cycle (ahead of equities).

The dollar breaking below the daily cycle trend line is the next piece we need to see to this puzzle …