Cycle Trading

Last week on Tuesday we took a look at the Miners.

We discussed how the consolidation pattern following the multi week sell off reminded me of a chart from 2011.

I saw similarities between the how the current sell off in the Miners reminded me of the dollar’s multi week sell off from 2011. After a multi week consolidation the dollar built up a lot of energy that resulted in a powerful trending move.

And the recent consolidation of the Miners also built up energy and its release has begun a powerful move. After such a powerful initial thrust we can expect some consolidation at some point. However, not only do I think that the Miners are rallying out of a daily and intermediate cycle low, but I believe that May 2nd will turn out to be the lowest point of the year, which is something that I plan on discussing in more depth in the Weekend Report.

In hindsight, the perfect time to load up would have been last Wednesday. However, I am going to suggest that you to not let the perfect get in the way of the good enough. If I am correct that May 2nd will be the lowest point of the year for the Miners, then this rally will have many weeks to go. And using a chart of the Miners from 2016 it is easily seen that entering after a couple of days after the rally started ended up being good enough.