Cycle Trading

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The Miners printed a bullish signal by closing above the 50 day MA the previous Friday. This week saw the Miners deliver a very bullish week, closing at the height of the week on Friday.

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Friday was day 16 for the daily Miner cycle. At day 16, the Miners are 2 days shy of entering its timing band for a daily cycle low, which then extends to day 25. A peak on day 16, or later, locks in a right translated nature to this daily cycle. The Miners also broke above the previous daily cycle high this week. The higher high this week breaks a pattern of lower highs that began in July.

Part of Miners big gain on Friday can be attributed to the dollar forming a swing high. As we will see below, the dollar is poised to begin its daily cycle decline. The dollar declining into a daily cycle low will likely provide a tailwind to the Miners as they rally into a daily cycle peak.

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The dollar formed a swing high on Friday. We still need to see a break of the daily cycle trend line to confirm the daily cycle decline. A peak on day 15 locks in a right translated nature to this daily cycle. Therefore our expectation is to see one more daily cycle that prints a higher high.

The Miners should benefit from the dollar declining into a daily cycle low. With the dollar likely to print a right translated cycle, the following dollar cycle should print a higher high, sending the Miners into their daily cycle low.

With this daily cycle for the Miners forming as a right translated cycle, the ensuing Miner cycle should print a higher high. Therefore it makes sense to save some dry powder for the forthcoming Miner daily cycle low.

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