Cycle Trading

The market delivered some bullish signals today, starting with the CRB Index.

The CRB is in the timing band for an intermediate low. The CRB rallied enough today to form a weekly swing low. A break above the declining trend line confirms a new intermediate cycle.

The Miners also formed a swing low today.

Tuesday was day 34 of the daily Miner Cycle. It is also the lowest point since this daily cycle peaked in late October. Wednesday formed a swing low. A break above the declining trend line signals a new daily cycle.

Today was the lowest point since gold’s daily cycle peaked in late October. Gold formed a bullish reversal today and also broke the declining trend line. Gold still needs to form a swing low to signal a new daily cycle. A break above 1251.50 forms a swing low.

Today was day 39 for the daily equity cycle.

Stocks printed a doji. Being late in the daily cycle this could signal a daily cycle low. A break above 1799.80 forms a swing low. And a break of the declining trend line will signal a new daily cycle.

Commodities have confirmed a new daily cycle and are on the verge of confirming a new intermediate cycle. Gold and the Miners are on the verge of confirming new daily cycles.

Our framework for the dollar calls for the dollar to seek out its yearly cycle low. A break below 80.38 forms a weekly swing high. Once the dollar forms a weekly swing high we should see the dollar sink into a left translated intermediate cycle low.

Which should ignite precious metals …