Cycle Trading

Looks like the volatility that was foreshadowed by the over 2.5 billion SOS during the first 5 days of the new daily cycle has caused stocks to fill the most recent gap.

And even if stocks fill the lower gap before the new daily cycle starts to gain traction I still remain bullish. One of the reasons is because of the NYMO’s powerful initial thrust.

The NYMO had the most powerful initial thrust out of a cycle low since the initial thrust out of the last 4 year cycle low in 2016. All previous large thrusts has translated into bullish traction and I expect to same here. And stocks printing another large Buying on Weakness day on Monday is a bullish sign.

Stocks printed 347 million in Buying on Weakness on Monday. We have seen that predictive value of these BOW days rises the more these days cluster. And, including Monday, that brings the recent total to over 1 billion BOW. And if stocks do fill the lower gap on Tuesday, then we could see an even bigger BOW number.

Stocks are in the process of forming its intermediate cycle low. But once they gain traction they are in one of the most bullish times of the year.