Cycle Trading

The Miners closed above both the 200 day MA and the 50 day MA on day 3 to confirm the new daily cycle. It has been downhill since then.

The Miners lost both the 50 day MA & the 200 day MA on Friday. The Miners continued lower on Tuesday forming a daily swing high. The peak on day 3 sets up an extremely left translated cycle formation. The Miners also closed below both the 10 day MA and the lower daily cycle band on Tuesday. This signals the daily cycle decline and a continuation of the intermediate cycle decline. And with Tuesday being only day 7, the Miners could trend lower for another 10 – 20 days before printing their daily cycle low.

I suspect part of the reason the Miners are heading lower is that the dollar seems to be emerging from an intermediate cycle low.

The monthly chart shows that the dollar’s monthly decline has been halted by the 200 month MA. Now the dollar is in its timing band for both a daily and intermediate cycle low. The dollar formed a daily swing low on Tuesday. Coupled that with the support from the 200 month MA makes likely that a new daily cycle will also trigger a new intermediate cycle.