Cycle Trading

The Miners formed a daily swing low on Tuesday.

Tuesday’s swing low formed off of the day 59 low, which places the Miner very deep in their timing band for a daily cycle low. Therefore Tuesday’s swing low has good odds of being the day 1 of the new daily cycle.

There are other indicators that signal Tuesday was day one of the new daily cycle. First off the Miners formed a swing low off of support for the 200 day MA. Another signal is that the Miners closed above the lower daily cycle band. There is also bullish divergences developing on the daily oscillators that we see at cycle lows. Now we need to see a close above the declining 10 day MA to confirm Monday as the daily cycle low.

Assuming that the Miners confirm the new daily cycle, what is happening with the dollar will likely cause headwinds for the Miners.

The dollar has formed a monthly swing low off the month 16 low. That places the dollar deep in its timing band for a yearly cycle low. So the monthly swing low has a good chance of marking the yearly cycle low, meaning that the dollar is beginning a new yearly cycle. And the dollar emerging into a new yearly cycle will likely have a deflationary effect on the Miners.