Cycle Trading

The daily bond cycle failed on Wednesday.

The daily bond cycle peaked on day 7 as it breached the 200 day MA. It was rejected by the 200 day MA and formed a swing high on day 8. A peak on or before day 8 signals a left translated cycle formation which usually leads to a failed daily cycle. Which happened on Wednesday. Now at day 11, bonds still need another 7 more days before entering its timing band for a daily cycle low. So our expectation is for bonds to trend lower over then next one to two weeks.