Stocks Form Daily Cycle Low

June 4, 2019

Stocks formed a swing low on Tuesday.

Stocks printed their lowest point on Monday, day 59. Only once in the past 16 daily cycles has the cycle count exceeded 59 days so Tuesday’s swing low quite likely marks the daily cycle low. There are already 3 levels of confirmation of the daily cycle low. There is a bullish crossover on the oscillators, stocks regained the 200 day MA in a clear and convincing manner, and stocks also recovered the breakdown form the day 45 low. A close above the declining trend line would provide final confirmation of the daily cycle low. I also suspect that stocks have formed a larger degree intermediate cycle low which I plan to discuss in the Wednesday Mid-Week Report.

6 responses to “Stocks Form Daily Cycle Low”

david wong

June 4, 2019

Subscriber here!

So in your opinion what’s the better opportunity since looks like both stocks and gold are putting in bottoms. My account is too small to split the 2! Which would you go with?

Reply
1. likesmoneystudies
  
  June 4, 2019
  
  David,
  
  It is a function of how much risk you are willing to take.
  One has the potential for a better return, the other has the potential for less volatility.
  
  I believe that gold has the potential for a better return, but also has the potential for more volatility. However, the Fed has demonstrated its resolve as recently as today in supporting the general stock market.
  
  Reply
  1. Dw
    
    June 4, 2019
    
    Ah I understand, thank you!
  2. Dw
    
    June 5, 2019
    
    Oh one more question. Do you think both gold and stocks can rise at the same time? Some see gold as a safe haven when the stock market is in trouble thus having an inverse relationship.
    
    Thanks
  3. likesmoneystudies
    
    June 6, 2019
    
    Yes
Dw

June 7, 2019

Thanks!!

Reply

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