Everything Lower …

August 6, 2013

Seemed everything was lower today.

The daily equity cycle peaked on day 28 and formed a swing high today.

At day 30, stocks are heading into their timing band for a daily cycle low. Stocks breached the daily cycle trend line today and also printed a bearish TSI crossover. A little more follow through will send stocks into their daily cycle low. Since this daily cycle appears to be locked in a right translated nature, we will expect the next daily cycle to print a higher high.

Our framework for the dollar continues to unfold.

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The dollar continued lower on Tuesday, which was day 4 for the new daily dollar cycle. Following a left translated daily cycle our expectation is for this daily cycle to also form as a left translated cycle. A break below 81.407 forms a failed daily cycle. At 4 days, the dollar still has another 3 to 4 weeks to print a daily cycle low.

Gold should print a daily cycle low any day now.

Gold printed a bullish reversal on Friday. However Monday saw gold lower and Tuesday saw gold break below Friday’s low. In the overnight now gold is again printing a lower low. That will mean that the earliest that gold can form a daily cycle low will be Thursday. Then a break above the daily cycle trend line is required to confirm a new daily cycle. A day 17 peak means it is very likely that gold forms a right translated daily cycle. That sets an expectation for the next daily cycle to print a higher daily cycle high.

So while everything seemed to go lower today. A failed dollar daily cycle lining up with a new daily gold cycle may be worth the wait …

3 responses to “Everything Lower …”

John Fuller

August 7, 2013

hello – not sure I follow this about the dollar….”Since this daily cycle appears to be locked in a right translated nature, will expect the next daily cycle to print a higher high.” To my brain that should be gold .. as dollar’s headed down in another left transkated DC – no?

Reply
1. likesmoneystudies
  
  August 7, 2013
  
  John,
  
  You get another “Guest Editor of the Day” award.
  
  The sentence in question “Since this daily cycle appears to be locked in a right translated nature, (we) will expect the next daily cycle to print a higher high.” was added in the my final editing. I had intended to add that to my comments regarding stocks.
  
  I have since made the change and hope that it makes better sense.
  
  By the way, it appears that my final comment “So while everything seemed to go lower today. A failed daily cycle lining up with a new daily cycle may be worth the wait …” is clearer when I add in two more words (So while everything seemed to go lower today. A failed dollar daily cycle lining up with a new daily gold cycle may be worth the wait …)
  
  You have been doing a great job sitting in the editor’s chair. However, I intend to give you a break 🙂
  
  Thanks for the catch!
  
  Reply
  1. John Fuller
    
    August 7, 2013
    
    Haha! 😉 anyway, I like your work a lot.

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