Cycle Trading

Gold formed a lower low on Friday.

Monday saw gold form a swing low which was accompanied by a declining cycle trend line break declaring Monday as day 1 of a new daily cycle.

Gold just printed a right translated daily cycle.
Since following a right translated daily cycle the expectation is for gold to print a higher high, Friday’s intra-day low now becomes our stop.

With gold up, I was not at all surprised to see the dollar down today.

Monday was day 3 for the dollar.
The daily cycle appears to have peaked on day 2.

A break below 80.22 forms a daily swing high.

As we discussed in the Weekend Report, the weekly cycle printed an ugly swing high following the week 9 peak. In all likelihood the dollar has begun its intermediate cycle decline. Therefore all daily cycles should form as left translated cycles.

A peak on day 2 would certainly fit that scenario.

The Miners appear ready to follow gold.

It looks like the Miners printed a daily cycle low last Thursday.
A swing low was printed on Friday with some follow through today.
A break above the declining cycle trend line confirms a new daily cycle.

I expect we will see the Miners conquer that trend line when the dollar forms a swing high.

Then the Miners will be joining gold in a new daily cycle.

That would be good company to keep …