Cycle Trading

The Dollar

The dollar broke above the 50 day MA on Wednesday. But then formed a bearish reversal and closed below the 50 day MA. Thursday the dollar formed a swing high to signal the daily cycle decline.

The dollar recovered on Friday. We could see the dollar back test the 50 day MA before continuing into its daily cycle decline. A “kiss good-bye” will set up a declining trend line. A peak on day 9 can still result in a left translated failed daily cycle. A break below 99.19 will form a failed daily cycle.

Stocks

Stocks have entered their timing band to seek out a daily cycle low. Thursday’s new high on day 32 locks in a right translated daily cycle formation.

A swing high and a break of the accelerated trend line will signal the daily cycle decline. Stocks continue to close above the upper daily cycle band remaining in its daily uptrend. Stocks will continue its daily uptrend until it closes below the lower daily cycle band.