Cycle Trading

All of the check boxes are being checked to confirm that stocks are in a new intermediate cycle.

One of the confirmations that I look for is to see stocks begin to close above the upper daily cycle band. Closing above the upper daily cycle band ends the daily downtrend, begins a new daily uptrend, and indicates that the intermediate cycle low has been set.

Confirmations on the weekly chart include rallying out of being oversold on RSI and closing back above the 10 week MA. Both of which was accomplished last week. We were waiting on a weekly swing low, which formed on Monday, which confirms that this is week 3 of the new intermediate cycle. The other take away is that stocks are in a weekly uptrend. They will remain in their weekly uptrend unless they close below the lower daily cycle band. And the correct strategy in an uptrend is to buy the swing low.