Cycle Trading

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Gold lost the 200 MA today and then continued to plunge.

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Gold also broke below the daily cycle trend line today in a clear & convincing fashion and then broke below swing low that formed off of the day 14 pivot. Our daily cycle count places gold at day 7 of its current daily cycle, which should see gold trend lower for another 10 to 15 days.

We also need to acknowledge the possibility that gold could be at day 21 of the cycle that began August 1st. A break above the declining black dashed trend line would signal a new daily cycle.

However, regardless of the daily cycle count, the weekly chart points to more downside for gold.

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The weekly cycle peaked on week 5. Gold broke below the weekly trend line on week 11 and is currently at week 13. Gold is forming a left translated intermediate cycle that should see gold break below the previous weekly low of 1240.20

Bonds also delivered a clear and convincing trend line break today.

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There is a little ambiguity on the daily cycle count due to the candle printed on day 13. Bonds could have been setting the daily cycle trend line making today day 21. Or bonds may have printed a stealth daily cycle low making today day 7 of an new daily cycle.

I broke down in detail for subscribers in the Weekend Report where I think bonds are on the daily, weekly and yearly cycle. Suffice to say that I believe that bonds are declining into their yearly cycle low.