Cycle Trading

The Miners formed a swing high today.

The Intermediate Miner cycle is usually comprised of 3 to 4 daily cycles. The Miners are in their 4th daily cycle. A left translated, failed daily cycle is required to usher in the intermediate cycle decline. Left translated daily cycles for the Miners normally peak on or before day 8.

Tuesday was day 5 for the daily Miner cycle. The swing high today has a good chance of marking the intermediate cycle peak. A close below the upper daily cycle band will signal that the Miners have begun their daily cycle decline. And with a left translated daily cycle formation, it will likely mean that the intermediate cycle decline has commenced.

Once the dollar begins to rally out of its daily cycle low it will likely exacerbate the Miners intermediate decline.

The dollar did not form a swing today, but the bullish reversal has eased the parameters for forming a swing low. Tuesday was day 15 for the daily dollar cycle. The dollar is still 3 days shy of its normal timing band to print a daily cycle low. But the dollar is very deep in its weekly timing band. At week 36, the dollar may have run out of sellers and therefore we could see a shortened daily cycle. A break above 93.03 forms a swing low. Once a new daily cycle is confirmed, it is likely to also signal that a new yearly cycle for the dollar has started.