Cycle Trading

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We discussed last night how the Miners have confirmed a new daily cycle. Tonight we are going to look at how they are doing on the weekly cycle.

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The intermediate Miner cycle peaked in early July on week 6. It had a bearish break out of consolidation in early July and then dropped for 10 weeks into its intermediate and yearly cycle low. A bullish weekly reversal printed the 1st week of November. Last week the Miners formed a weekly swing low, indicating that the intermediate cycle low has been left behind. While still early in the week the Miners have already rallied for 6.73% delivering a clear and convincing break of the declining weekly trend line confirming a new intermediate cycle.

And I believe that there is reason to believe that this intermediate cycle will continue to rally.

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The Miners historically tank as the dollar rallies and rallies on any dollar weakness. The dollar is getting very late in its timing band to decline into an intermediate cycle low. During the past 3 weeks the dollar has been trading in a narrow range as it goes through a topping process. During that time the Miners have already rallied over 17%. And I believe that as the dollar finally declines into its impending intermediate cycle low the Miners are really going to catch fire.

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