Cycle Trading

Stocks have rallied 9.78% from the February 9th low to Monday’s high.
Then stocks were down on Tuesday.

I think that Tuesday signals a buying opportunity.

Tuesday was day 11 for the daily equity cycle. As I outlined on Monday, stocks have confirmed that they are in a new weekly cycle. A new weekly cycle should see stocks rally for 15 – 20 weeks. At some point stock will decline into a half cycle low. But since Stocks closed above the upper daily cycle band on Monday they are in a new daily uptrend. The correct strategy in an uptrend is to buy the swing low. And the big 804 million Buying on Strength from Tuesday aligns with stocks continuing higher.