In Sync

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The dollar, gold and the Miners appear to be in sync by tripping their daily cycle trend lines today.

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Monday was day 28 for the daily dollar cycle. Tuesday saw the dollar form a swing low and had a declining trend line break signaling a new daily cycle. I would like to see more follow through, but Tuesday was quite likely day 1 of a new dollar cycle.

Since I believe that the intermediate dollar cycle has peaked, I expect subsequent daily dollar cycles to form in a left translated manner.

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Gold’s daily cycle peaked with an upper Bollinger Band breach last Tuesday, day 16. Since then gold has been trending lower. Tuesday gold broke below the daily cycle trend line signaling a daily cycle decline. Our framework says that gold has left behind a yearly cycle low on June 28th. Therefore we expect that this daily cycle will form a higher daily cycle low.

Gold will likely continue lower as the dollar rallies out of its daily cycle low. Since we are expecting a left translated dollar cycle, we expect a dollar swing high by day eight. That should mark a daily cycle low for gold.

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Like gold, the Miners daily cycle peaked with an upper Bollinger Band breach last Tuesday, day 18. The Miners also trended lower and have now breached the daily cycle trend line today, day 23. The trend line breach signals a daily cycle decline is upon us.

Like gold, the Miners will likely continue lower as the dollar rallies out of its daily cycle low. Since we are expecting a left translated dollar cycle, We expect a dollar swing high by day eight. That should mark a daily cycle low for for the Miners.

Our framework also have the Miners leaving behind a yearly cycle low in June. Therefore we also expect the Miners to print a higher daily cycle low.

This forth coming daily cycle low for gold and the Miners will likely be the best buying opportunity for the year.

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