Cycle Trading

The Miners formed a swing low and closed above the lower daily cycle band today to confirm a new daily cycle.

At this point it is too early to say if this new daily cycle for the Miners will form as a right translated or left translated cycle. But it does look like today’s weak dollar did provide a tail wind for the Miners.

The dollar’s daily cycle peaked on Wednesday, day 24. A swing high did form today that breached the daily cycle trend line. With the dollar late in its timing band for a daily cycle low, this should begin the dollar’s daily cycle decline.

Meanwhile it appears that NATGAS is in trouble.

NATGAS printed its daily cycle low on 10/30/15. The current daily cycle peaked on day 5, and was rejected by the lower daily cycle band on day 11. NATGAS broke below the daily cycle trend line today confirming it is in a daily cycle decline. With today being day 14, NATGAS has locked in a left translated formation to this daily cycle. Since the average NATGAS daily cycle runs about 20 – 21 days we could see NATGAS trend lower for another 5 to 10 days.