Cycle Trading

Bonds appear to be continuing a pattern of lower highs.

After peaking on day 12, bonds lost the upper daily cycle band and both the 200 day MA and the 50 day MA before printing its daily cycle low on day 16. Bonds then rallied out of that lower, regaining both the 50 day MA and the 200 day MA. Bonds went on to close above the upper daily cycle band last Wednesday on day 4 to confirm a new daily cycle.

Bonds closed below the upper daily cycle band on Monday which indicates that bonds have begun their daily cycle decline. Today, bonds lost the 200 day MA. Bonds are on the verge of losing the 50 day MA. And a break below the previous daily cycle low of 121.66 will form a failed daily cycle, indicating that bonds are in an intermediate cycle decline.