Cycle Trading

The shortened daily cycle in December turned out to be the terminal daily cycle for the previous intermediate cycle.
The dollar is currently in the first daily cycle of a new intermeduate cycle.

A bearish reversal candle was printed on Friday, day 10 of the current daily cycle.
A break below 80.41 forms a daily cycle high.
A cycle peak on day 10 will likely result is a right translated daily cycle.
A right translated daily cycle is our expectation for the initial daily cycle of a new weekly cycle.

Stocks

Equities shot up out of the daily cycle low gaining 4.99% in the first 3 days.

Stocks did take a small breather on day 2 but are a bit overbought at the moment.
That may explain the Selling on Strength print on Friday.

The CCI

There are a couple of things going on in the monthly chart.

Notice that since the CCI has emerged from the three year low, there has not been a confirming declining monthly cycle trend line break.
Now at 7 months and a failed weekly cycle in hand, it appears that the CCI is correcting into a yearly cycle low.
Perhaps with the yearly cycle low left behind the CCI will have fresh enough legs to break above the declining monthly trend line.

And when we get a break out here, that is when I expcet commodities to fly.