Cycle Trading

http://postimg.org/image/3lpuhkw3z/

The Miners delivered its strongest close above the 50 day MA since August. This is a very bullish signal considering that the dollar broke to another new daily cycle high on Friday.

http://postimg.org/image/bdiu0vo1d/

This is an important juncture for the Miners. As we have witnessed, a false breakout and rejection of the 50 day MA results in bearish consequences for the Miners.

The difference between August and now can be found in the True Strength Indicator. In August the TSI broke briefly above the zero line and then delivered a bearish zero line crossover and continued lower. The Miners then proceeded to drop over 40% between August and November.

Currently we see that the True Strength Indicator has just broken bullishly from a triangle consolidation, delivered a bullish zero line crossover, and is trending higher. This strengthens the bullish case for the Miners. A break above 20.29 forms a higher high and ends the pattern of lower lows.

A complete breakdown of the the Miners daily, intermediate and yearly cycle can be found in the Weekend Report.

For this week I will be running a special New Year’s Trial Subscription offer for the Weekend Report. Try the first month for just $10.00 USD. Then it is $90.00 USD for each 6 months thereafter.

The Weekend Report discusses Dollar, Stocks, Gold, Miners, The CRB Index, & Bonds in terms of daily, weekly and yearly cycles.
Also included in the Weekend Report is the Likesmoney CycleTracker.