Cycle Trading

Yesterday morning when we looked at the dollar, it broke below its daily cycle trend line signaling its intention of seeking out its daily cycle low.

Wednesday during the day saw the dollar break below its previous daily cycle low.
The dollar is now in a failed daily cycle.

Remember that a failed daily cycle leads to an intermediate cycle decline.

On the weekly chart we see that the dollar now has breached its intermediate cycle trend line, which confirms an intermediate cycle decline.
At week 6, that leaves about 8 to 16 weeks for the dollar to trend lower.

The next thing that we will watch for is the 79.00 level.

A break below the 79.00 level confirms a failed intermediate cycle and confirms that the dollar is in a yearly cycle decline.

It seemed that this Wednesday’s announcement that the economy unexpectedly contracted in the fourth quarter, declining by 0.1 percent against expectations of a 1.1 percent increase, was a signal for commodities to “start your engines”.

Looking at Corn we see that it confirmed a new intermediate cycle yesterday.

Corn broke above the declining intermediate cycle trend line confirming a new weekly cycle.

They CCI index reversed the pattern of lower lows and lower highs and also confirmed Wednesday as day 2 of a new daily cycle.

The bigger picture for commodities looks very bullish.

The CCI appears to have printed an yearly yearly cycle low at month 7.

Now with a fresh new daily cycle in what is likely a new yearly cycle, the CCI is on the verge of breaking out above the 2 year declining tend line.

Once the CCI breaks above this 2 year declining trend line we should see the entire commodity complex blast off …

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