Cycle Trading

On Tuesday, stocks confirmed their daily cycle decline.

Stocks closed below the 10 day MA and also broke below the daily cycle trend line to confirm that the daily cycle is in decline. The peak on day 28 assures us of a right translated daily cycle formation. With Tuesday being day 32, stocks are in their timing band to print a DCL. So once a swing low forms, it will have good odds of marking the daily cycle low.

Stocks have established a daily uptrend. If a swing low forms above the lower daily cycle band that would indicate that stocks remain in their daily uptrend and would be a signal to enter long positions.