Cycle Trading

The dollar printed a daily cycle low on October 3rd after an extended sell off that saw the dollar form 3 consecutive left translated failed daily cycles. AFter rallying for 6 days the dollar the dollar ran into resistance at the 80.60 level and has closed lower for two days in a row.

It appears that the dollar is forming a mini bull flag. There is a possibility that the dollar has formed an early 15 week intermediate cycle low. If it has, then the dollar should resolve this this flag bullishly on the way to forming a right translated cycle. Of course a break below the developing trend line would signal a daly cycle decline.

Gold may be sniffing out a bull flag in the dollar.

Monday was day 18 for the daily gold cycle. Gold was up early but then gave up nearly everything and closing at near the lows of the day. With gold unable to maintain today’s gains while the dollar was down indicates that gold has not found its daily cycle low. It also suggests that the dollar’s daily cycle has not yet peaked.

Stocks continued to rally.

Monday was day 3 for the daily equity cycle. Stocks were down early then reversed strongly and closed near the high of the day. So far stocks have rallied 3.79% Since last Wednesday. Our daily cycle expectation is to print a higher daily cycle high following a right translated daily cycle.