Cycle Trading

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We discussed last night since the Miners are still shy of their timing band of a daily cycle low that we expected to see the Miners break lower. Well, the Miners did break lower today.

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At day 16, the Miners are still two days shy of their timing band for a daily cycle low that can extend out to day 26. The task at hand now is to hunt for a swing low accompanied by a declining trend line break to signal a new daily cycle.

I believe that the Miners break lower was in response to the dollar breaking higher today.

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The dollar broke out to new highs today. Wednesday was day 9 for the daily dollar cycle. The new high on day 9 begins to shift the odds of this daily cycle forming in a right translated manner. Still with this being week 25 our expectation is to still see a failed daily cycle form. That means that the dollar will need to reverse lower soon.