Cycle Trading

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Stocks broke above the day 15 peak today setting a new daily cycle high.

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Tuesday was day 27 for the daily equity cycle. A break to new highs has firmly shifted this to a right translated daily cycle. That makes day 19 a half cycle low and causes us to redraw the daily cycle trend line.

And since we need a left translated, failed daily cycle to conclude this weekly cycle that means we will need one more daily cycle to unfold in the current intermediate cycle.

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Gold is getting close to decision time. Gold found support at the 50 day moving average and formed a 29 day daily cycle low. But gold has yet to break above the declining cycle trend line. If gold fails to break above the declining trend line we may be forced to reconsider day 22 as the daily cycle low.

Bonds may be ready for a daily cycle decline.

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Bonds printed a reversal candle on Monday. Then they formed a swing high today. Even though bonds closed higher, there was a very high 81 million Selling on Strength printed today. A break a below the daily cycle trend line will confirm a daily cycle decline.