The Trend is your Friend …

November 23, 2012

This morning we see that the Schaff Trend Cycle has (STC) turned lower.
Breaking below the 75 level will confirm the move lower.

Once the STC breaks below the 75 level it travels down to the 25 level over 80% of the time.

Please keep in mind that the dollar is deep into the timing band to print a daily cycle low and the next swing low will likely mark the daily cycle low.

We see gold is up a few points in the overnight.

Friday is day 14 for gold.
The current daily cycle peak printed on day 4 at 1738.6.
If gold can break above 1739, it will lock in a right translated nature to the current daily cycle.

Silver has already locked in a right translated nature to the current daily cycle.

Day 14 sees silver printing another higher high.
Silver is definitely showing leadership for the precious metals.

I think we will see gold and the miners begin to follow the leader …

6 responses to “The Trend is your Friend …”

likesbullmarkets

November 23, 2012

I almost bought last night, but thought best to go with the stress free ride. ( gold )

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ALEX

November 23, 2012

Nice report pre mkt L.M. …& nice confirmation and cooperation by the Markets. 😉

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IheartMrs.Seaver

November 24, 2012

LM,

I am a bit confused with regards to the miners compared to the metals. Surprisingly, the miners bottomed roughly 10 trading days after the metals – the miners more often than not LEAD the metals out of bottoms. What are the implications of this? Does this fact effect the miner’s move during the current IC? Would it now be a wise decision to play the metals instead of miners?

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1. likesmoneystudies
  
  November 24, 2012
  
  IheartMrs.Seaver,
  
  I agree, that was confusing — the Miners usually get their marching orders from gold.
  Gold printed a daily cycle low in early November and was able to resist the final intermediate cycle plunge for stocks.
  The Miners could not resist the selling pressure and printed a second failed daily cycle to conclude the previous intermediate cycle.
  Gold has already confirmed a new intermediate cycle, as shown in this week’s weekend report.
  The Miners have not yet done so.
  
  I think that we will see a new daily cycle for the dollar begin shortly.
  For reasons explained in the weekend report, I expect the new dollar daily cycle to be left translated.
  Once the new daily dollar cycle forms a swing high I think we will see the Miners play catch up.
  
  The catch up may have already started because they are now up 7.8% from their daily cycle bottom.
  
  Reply
likesbullmarkets

November 24, 2012

When cycles clash it gets interesting which class can resist the cycle of another class

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Short UAL | Wall Street Stocks

November 27, 2012

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