Cycle Trading

Gold formed a weekly swing low on Tuesday. Right on queue we see gold giving some back today.

Wednesday was day 6 for the daily gold. If gold is leaving behind an intermediate cycle low then this daily cycle should form as a right translated cycle. Which means gold should peak on or after day 12. At this point our expectation is to see gold continue higher. The only thing that changes that outlook would be if gold broke below the daily low set on 10/15.

Wednesday was day 14 for the daily dollar cycle. The dollar is 4 days shy of its timing band for a daily cycle low and our expectation is for the dollar to continue lower.

It is prudent to recognize that the dollar printed a narrow range day today forming a lower low. The dollar has eased the parameters for forming a swing low. While early, should the dollar form a daily swing low accompanied by a declining trend line break then that would signal a new daily cycle.

Stocks printed a swing high today.

Monday is day 10 for the daily equity cycle. While stocks formed a swing high, it could mean that stocks set the daily cycle trend line today. The Buying on Weakness numbers suggest that the rally is not over yet.