Cycle Trading

Gold continued its search for a daily cycle low by printing a lower low today, closing below the 200 MA.

Thursday was day 19 for the daily gold cycle. Gold is in the timing band for a daily cycle low. A break above $1307.60 forms a swing low. And a break of the declining trend line confirms the new daily cycle. The Miners often lead gold out of a daily cycle low and today they delivered a signal that a daily cycle low is at hand.

Thursday is day 19 for the daily Miner cycle. Which means the Miners are now in their timing band for a daily cycle low. A swing low could mark a daily cycle low. The bullish reversal printed today has eased the parameters for the Miners forming a swing low. A break above 23.89 forms a swing low.

The weekly gold cycle is at week 12 and the weekly Miners are at week 13. Both gold and the Miners are still early enough in their intermediate cycles to allow for another failed daily cycle to unfold before entering in the timing band for a weekly cycle low. Therefore it is likely to see the impending new daily cycles for both gold and the Miners form as left translated, failed daily cycles peaking by day 8.

The daily bond cycle may have peaked today.

Thursday was day 13 for the daily bond cycle. Bonds pierced the upper Bollinger Band today. We have seen previously where an upper Bollinger Band breach has lead to a cycle decline. There is also a bearish divergence developing on the True Strength Indicator which also signals lower prices.

Meanwhile stocks may have found support at the lower Bollinger Band on Thursday.

The daily equity cycle peaked on day 31. That has locked in a right translated nature to this daily cycle. At 35 days, stocks are in the timing band to print a daily cycle low . A break above 1855.55 forms a swing low. Then a break of the declining trend line will confirm a new daily cycle.