Cycle Trading

Gold formed a swing high on Tuesday.

Tuesday was day 18 for the daily gold cycle. Gold formed a swing high off the day 17 peak. Now a break below the daily cycle trend line confirms a daily cycle decline.

Bond also formed a swing high on Tuesday.

Tuesday was day 17 for the daily bond cycle. The swing high formed today tested the daily cycle trend line. A break below the daily cycle trend line confirms a daily cycle decline.

The day 17 peak in both bonds and gold virtually locks in a right translated nature to these daily cycles. Now we are on the watch to see both print a higher daily cycle low. Doing so breaks a pattern on lower highs and lower lows.

Stocks came to about five points away from forming a failed daily cycle on Monday. An oversold bounce is not a surprise after such a big drop off. But at day 26, stocks still have another 4 more days before entering their timing band for a daily cycle low. I suspect that we will see one more drop into a final daily cycle low.