Cycle Trading

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Gold has entered a holding pattern defined by the previous daily cycle low of 1268.40 and the day 7 peak of 1315.80.

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If gold can break above the day 7 peak of 1315.80 then it would lock in a right translated nature to this daily cycle and signal that this is a new intermediate cycle. However, gold was rejected at the 50 day MA on day 7 and then lost the 200 day MA on day 9. So gold is still caught in an intermediate decline. Now at day 13 gold is only 5 days away from entering its timing band to print a daily cycle low. And with each passing day the gravitation pull of the impending low will become greater.

Gold is following a failed daily cycle. Gold failed to print a higher high, so it is still caught in a pattern of lower highs and will likely break below the previous low of 1268.80 to print a lower low.

Bonds turned the corner today.

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The daily bond cycle peaked on day 21 and printed the lowest point on Monday, which was day 27. Tuesday saw bonds print a clear and convincing swing low to signal day one of a new daily bond cycle. Bonds are currently on week 19 of the intermediate bond cycle. Another 5 weeks will take bonds out to week 24, which is in the latter part of the timing band to print an intermediate cycle low. So this new daily cycle will likely be the last daily cycle of this intermediate cycle. Therefore we can expect to see the daily bond cycle peak on or before day 8 and then roll over into a left translated, failed daily cycle.