Cycle Trading

The Miners broke through the declining trend on Thursday.

The clear and convincing break above the declining trend line confirms that the Miners are in a new daily cycle. Thursday’s close above the upper daily cycle band ends the daily downtrend. I would not be surprised to see the Miners consolidate Thursday’s gain crawling along the 50 day MA before breaking higher.

And I think that it is no coincident that the Miners delivered the break of the declining trend line on the day that the dollar lost the 10 day MA.

Thursday was day 14 for the dollar’s daily cycle, just 4 days shy of entering its timing band for a daily cycle low. A peak on day 8 sets up a left translated daily cycle formation. Any bearish follow through will have us watching for a failed daily cycle. A break below 99.25 forms a failed daily cycle and confirms that the dollar has entered its intermediate cycle decline.