Cycle Trading

Approximately every 20 to 25 weeks stocks decline into an intermediate cycle low. It is sort of like having a Blue Light Special. Stocks are currently setting up for another intermediate cycle low.

Stocks are beginning to satisfy the conditions for forming an intermediate cycle low. Stocks have formed a weekly swing high and have broke below the intermediate cycle trend line to confirm the intermediate cycle is in decline. The is week 24, placing stocks deep in their timing band for forming an intermediate cycle low. This is also day 54 for the daily equity cycle, placing stocks deep in their timing band for a daily cycle low. Once stocks print a daily swing low, the odds not only favor marking the DCL but the ICL as well.