Cycle Trading

Gold broke lower today, extending its daily cycle decline and also breaking below the July low.

By breaking below the July low, gold has extended its yearly cycle decline. This changes the picture. Now instead of a new daily cycle possibly signaling a new intermediate cycle, it may also signal a new yearly cycle.

Meanwhile stocks formed a daily swing low today.

The swing low that formed today was turned back by the convergence of the 200 MA and the declining cycle trend line. We are still waiting on a clear and convincing break of the declining cycle trend line to confirm a new daily cycle.