Cycle Trading

The dollar formed a swing on on Wednesday, day 18.

The dollar has entered the timing band to seek out a daily cycle low.
The dollar needs to break below the rising daily cycle trend line to confirm that it has entered its primary decline.
The timing band runs typically from 18 to 25 days leaving the dollar just over a week to print a daily cycle low.
The right translated nature of this daily cycle suggests that the next daily cycle will print a higher daily cycle high.

The Euro printed a swing low off Tuesday’s Doji candle.
At 35 days, it will very likely mark a daily cycle low.
A break of the declining trend line confirms a new daily cycle.

Tuesday was day 38 for the daily equity cycle.
Wednesday formed a swing low off the Tuesday print.
A break above the declining cycle trend line signals a new daily cycle.
And as we discussed on the Weekend Report, a break above 1530.94 confirms a new daily cycle.

The daily bond cycle appears to have peaked which is supportive of equities confirming a new daily cycle. Like the dollar, the current daily bond cycle has formed as right translated — meaning we can expect the next daily bond cycle to print a higher daily cycle high. What I am watching here is the 2/13 low of 115.55. A daily cycle low printed above that means that this was the first daily cycle of a new intermediate cycle. Should bonds fall below 115.55, then that means the intermediate and yearly cycle decline is still in play.

We will keep watch on bonds and the dollar as we wait to see if stocks will confirm a new daily cycle