Cycle Trading

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Stocks broke below the daily cycle trend line today to confirm the daily cycle decline.

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At day 32, stocks are in their timing band to print a daily cycle low. The peak on day 29 assures us of this cycle forming in a right translated manner meaning our expectation is to see the next daily cycle go on to print a higher daily cycle high.

So while stocks can go lower here, the criteria has been satisfied to print a daily cycle low. A swing low accompanied with a declining trend line break signals a new daily cycle. A break above 1978.90 forms a swing low.

The dollar continued higher today …

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The dollar has entered into its timing band to print a daily cycle low. Like stocks, the day 20 high assures us of a right translated cycle forming. Therefore we expect to see the next daily cycle to also print a higher daily cycle high.

Yet despite the dollar printing higher highs, gold refuses to print lower lows.

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While the dollar continues to print higher highs, gold refused to print lower lows. Gold appears to be back testing the day 36 low. If that holds we should see gold go on to print a higher daily cycle high