Cycle Trading

Friday was day 15 for the daily dollar cycle.

At 15 days, the dollar has locked in a right translated nature to the current daily cycle.
The dollar has also broke above the previous intermediate cycle high.
At 15 days, the dollar is approaching its timing band for an daily cycle low.
The dollar should find its daily cycle low over the next 2 weeks.

Below is the daily Euro chart.
I thought that looking at Euro may aid us with our dollar analysis.

The Euro printed an intermediate cycle low in November.
Its 3rd daily cycle ran through 1/28/13 where it appears to have printed a “stealth” daily cycle low.
I say that because a swing high was formed on the 28th. The very next day a swing low formed and a new daily cycle began.
The intermediate cycle peaked on 2/01/13, the same day the dollar printed its intermediate cycle low — hmmm.

Friday was day 18 and the Euro is in the timing band to print a daily cycle low.
a swing low here could send the dollar seeking its daily cycle low.

Stocks

Thursday was day 35 for the daily equity cycle and Friday formed a swing low.

Was a daily cycle low left behind?
It is possible.
Should stocks break above 1530.94 then I think that we can label day 35 as a daily cycle low.
And it may also signal the type of corrections we can see until this intermediate cycle peaks.

As I have mentioned before, the current equity rally remind me of the November 2011 to April 2012 rally.

That rally featured minor 20 – 40 point corrections en route to a 23% gain.

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