Cycle Trading

This morning we discussed how the dollar broke below the previous daily cycle low. This confirms that the dollar is now in an intermediate cycle decline.

The intermediate cycle peaked on week 4. With this week being week 7 the dollar has another 10 weeks before the it enters its timing band for an intermediate cycle low. So the dollar could trend lower for another 10 to 17 weeks before an intermediate low forms. This assures us of a left translated intermediate cycle formation. And it means that the dollar could print one or two more failed daily cycles before the final intermediate low prints. In the Weekend Report we will look at what this means for the dollar’s 3 year cycle and its 15 year super cycle.

Meanwhile, stocks re-affirm their daily uptrend.

Thursday was day 24 for the daily equity cycle. Stocks closed convincingly above the upper daily cycle band today to affirm that stocks continue to be in a daily uptrend. They will remain in the daily uptrend unless they close below the lower daily cycle band.