Cycle Trading

The Dollar

The dollar printed a new high on Friday, day 20, assuring us of a right translated daily cycle formation.

At 20 days, the dollar has entered its timing band to seek a daily cycle low. A daily swing high accompanied by a break below the daily cycle trend line would signal the daily cycle decline. The dollar is in a daily uptrend. The dollar will continue in the uptrend until it closes below the lower daily cycle band.

Stocks
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The rally out of the June intermediate cycle low caused stocks to get a bit overheated, stretching above the 10 day MA.

Stocks have been coiling for the past 6 days, allowing for the day 10 MA to catch up. A break above this coil should send stocks into their daily cycle peak. Stocks are in a daily uptrend and will remain in the uptrend until they close below the lower daily cycle band.