Cycle Trading

The Miners delivered a swing low on Monday

The Miners printed their lowest point on Thursday, which was day 52. The Miners came close to printing a swing low on Friday, but no cigar. The Miners only had 1 daily cycle longer than 52 days over the past 2 years, which occurred in March at 53 days.

So Monday’s swing low has very good odds of marking the daily cycle low. A close above the 10 day Ma will confirm the new daily cycle.

On Sunday I discussed my reservations of the Miners for this new daily cycle. Having stated that I now want make some observations:

1) A swing low deep in the timing band for a daily cycle low is a buy signal.
2) Since the Miners are in a weekly uptrend, there exists the possibility of a bullish surprise.