Cycle Trading

The Miners formed a daily swing low on Thursday.

Thursday was day 19. This places the Miners in the early part of their timing band for a daily cycle low.

I am a bit skeptical of the Miners printing a daily cycle low here while gold has yet to break the daily cycle trend line that we discussed on Monday. However, as we just mentioned, the Miners have entered their timing band for a daily cycle low. A break above the declining cycle trend line is needed to confirm a new daily cycle. A close above the upper daily cycle band would give us an early indication that day 19 hosted a daily cycle low. Also, a close above the upper daily cycle band will affirm that the Miners remain in their daily uptrend. The daily uptrend will continue unless the Miners close below the lower daily cycle band.

Bonds are also in their timing band for a daily cycle low.

Thursday was day 19 for the daily bond cycle. Thursday’s gain has bonds testing the declining cycle trend line. It also has eased the parameters for forming a daily swing low. Break above 138.62 will form a daily swing low to signal a new daily cycle. If day 19 is the daily cycle low, then bonds would have maintained their daily uptrend.