Cycle Trading

The Dollar continued its daily cycle decline today

Day 13 saw the dollar print a lower low.
The dollar did backtest the previous daily cycle low before closing lower.
At 13 days the dollar needs another 5 days before entering its timing band for a daily cycle low.

Bond just may have printed a daily cycle low today.

Bonds broke above yesterday’s high and formed a swing low.
This has the looks of forming a daily cycle low.
The commencement of a new daily cycle after a failed daily cycle could very well initiate a new intermediate cycle.

The current weekly cycle is a failed intermediate cycle.
At 20 weeks, it is in the timing band to print an intermediate cycle low.

The previous yearly cycle low printed in March.
At 10 months the yearly cycle is in the timing band for a yearly cycle low.
So a new daily cycle is very likely to mark a new yearly cycle as well.

If bonds begin rallying out of a yearly cycle low, that could have a negative impact on stocks

You will notice in the chart above as bonds rallied stocks tanked.

It may be time to …