Cycle Trading

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The daily dollar cycle peaked on Friday, day 17. A swing high and trend line break formed on Monday, day 18, to confirm the daily cycle decline. The dollar’s timing band for a daily cycle low begins on day 18. So the dollar could very well of printed a daily cycle low on Monday.

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Since the day 17 peak the dollar has been forming a mini triangle consolidation. I believe that a break of this consolidation will signal either a new daily cycle or a bearish continuation.

Stocks printed another higher high today.

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Thursday was day 21 for the daily equity cycle. A new high now virtually assures us of a right translated nature for this daily cycle. But as we saw with the previous daily cycle, even a right translated cycle can fail. And the large Selling on Strength numbers we have seen recently still suggest something sinister is afoot.