Cycle Trading

Thursday was day seven for the daily dollar cycle. The dollar formed a swing high on Thursday and a trendline break, which signals the daily cycle is in decline.

However, the dollar did print a long lower tail suggesting that it could reverse higher. Should the dollar break above Wednesday’s high of 83.19 that would negate the swing high and trend line break increasing the odds of a right translated daily cycle. But for now the swing high and trend line break appears to have the dollar poised for a left translated daily cycle.

Thursday was day six the daily Minor cycle. The Miners delivered nice follow through to yesterday’s big gain with being up almost .70%. The Miners are also in the process of filling the 286 to 300 gap. The Miners also formed a weekly swing low. This is the first step for forming an intermediate cycle low. The Miners will still have to break the declining cycle trendline to confirm a new weekly cycle.

So it appears that the bottom is in the Miners and we are beginning to see the precious metals breaking free of their basing patterns. Gold had a big day today gaining about 36 points or 2.54% delivering a lockout day. And as good as gold was silver have even a better day.

Silver soared, going up 1.25 which the whopping 5.40%. So now so now let’s look at the big picture for metals

Gold and copper have broke free from their basing patterns. Silver and platinum are starting to break free and it looks like palladium is next.

It appears that the yearly cycle lows are in.

Hold on Tight …