Cycle Trading

Stocks formed a swing low on Friday to signal that Thursday was a possible daily cycle low. Then stocks broke below Thursday’s low on Monday. That negated Friday’s swing low to extend their daily cycle decline.

The S&P was down over 1.6% on Monday. The Dow was down at one point close to 500 points from Friday’s close. However stocks recovered into the close with the Dow being down only 66 points on Monday and the S&P down only 13.The recovery into the close has eased the parameters for forming a swing low. A break above 2937.32 would form a swing low. Then a break above the declining trend line would have us label Monday as the daily cycle low. If stocks can form a swing low on Tuesday, then what I said in the Weekend Report is still in play.

Remember that if a swing low forms above the LOWER cycle band then it will remain in its daily uptrend and trigger a cycle band buy signal. However, in this situation, stocks can still form a swing low above the UPPER daily cycle band. This still triggers a cycle band buy signal. But forming the swing low above the upper daily cycle band could mean that stocks are beginning a runaway more.


I discuss the idea of a runaway move further in the Weekend Report.

This week I am running a 6 week trial subscription special. The 6 week trial subscription will give you full access to the premium site which includes a complete breakdown of the dollar’s daily, weekly, yearly, 3 year and 15 year super cycles. The trial subscription also includes:

1) The Weekend Report, which is posted usually Saturday mornings. It discusses Dollar, Stocks, Gold, Miners, Oil, & Bonds in terms of daily, weekly and yearly cycles – Which includes the Likesmoney Cycle Tracker.

2) The Mid-Week Update. Posted on Wednesday’s is a review of the daily and weekly charts for the above mentioned asset classes.

3)The Weekend Updates take a look of the daily & weekly charts of the Dax, GYX, NATGAS & XLE.

4) Weekly Update of the Bullish Percentile Bingo

5) Frequent updates of my proprietary FAS Buy/Sell Indicator

The goal of the Weekend Report is to develop an on-going framework of expectations using cycle analysis.

For the Likesmoney 6 week trial subscription offer click here.