Slow out of the Blocks

August 24, 2017

The daily equity cycle peaked on day 27. It then formed a swing high and closed below the 10 day MA to signal the daily cycle decline. Stocks printed their lowest point on Monday, day 36, placing them in their timing band for a daily cycle low.

Stocks formed a swing low and closed above the 50 day MA on Tuesday to signal a new daily cycle. A break above the declining trend line will confirm the new daily cycle but stocks have been slow out of the blocks to accomplish this.

Meanwhile gold printed a bearish reversal on day 29 that likely is the daily cycle top, but it too has been slow out of the blocks with any follow through.

Thursday was day 33 for the daily gold cycle. That places gold in its timing band for seeking out its daily cycle low. Gold has formed a swing high off the day 29 peak. Now a break below the daily cycle trend line will confirm the daily cycle decline. Gold has been in a daily uptrend. As long as the daily cycle low closes above the lower daily cycle band then gold will remain in its daily uptrend.

3 responses to “Slow out of the Blocks”

Bill Howe (@wchowe)

August 25, 2017

Whats the chance, this is day 7 for GOLD?

Reply
1. likesmoneystudies
  
  August 25, 2017
  
  For Friday to be day 7 means that the DCL was back o day 27.
  I consider that a low probability due to gold not closing below the 10 day MA or breaking below the daily cycle trend line.
  Day 21 did close below the 10 day MA so it has a higher probability of actually being the DCL.
  But with gold stretching the recent daily cycles to 40 plus days makes it more likely that Friday is day 34.
  
  Reply
  1. koen
    
    August 28, 2017
    
    And now ….35 or new count…I remember losing a lot of money sprong 2016 when often was spoken about werking DCL and every time extending or afterwards the fact that it did not really broke the trend line…would not like it gazon as I am protecting the fysical with a short….
    Best regards

Cycle Trading