Cycle Trading

This morning I want to draw your attention to agriculture.
To begin let’s look at the yearly cycle for agriculture as represented by the Powershares DBA.

Two things that you will notice:
1) DBA follows a yearly cycle
2) DBA is in the timing band for a yearly cycle low.

On to the weekly chart.

The DBA intermediate cycle ranges from 18 to 24 weeks.
The current intermediate cycle printed week 27 four weeks ago.
That just may have been the intermediate and yearly cycle low.
The past 4 weeks just may have been a bottom test.

On to the daily chart.

The last three daily cycles ran 25 to 28 days.
The current daily cycle sits at day 19.
If Monday was a successful backtest of the previous daily cycle low we could see a swing low form.
If a swing low forms, then it looks like DBA just printed a higher low and should be emerging from its yearly cycle low.