Cycle Trading

The Miners have been in a daily uptrend since emerging from the May cycle low. This uptrend is characterized by peaks forming above the upper daily cycle band and lows forming above the lower daily cycle band.

The daily Miner cycle peaked on day 15, formed a swing high and began its daily cycle decline. It printed its lowest point on Thursday, day 22, which placed them in their timing band for a daily cycle low. The Miners formed a swing low on Friday. They delivered bullish follow through on Monday by closing above the declining trend line to confirm a new daily cycle. And since the swing low formed above the upper daily cycle band the Miners remain in their daily uptrend and trigger a cycle band buy signal.

And I believe that what is helping to drive the Miners higher is the recent weakness in the dollar. The dollar formed a daily swing high and delivered bearish follow through last week to begin its daily cycle decline. But a larger degree decline could be beginning.

The dollar printed a bearish reversal candle last week. And this week it has already formed a weekly swing high. If week 5 remains as the intermediate cycle peak that will set the dollar up for a left translated weekly cycle formation which indicates the intermediate cycle decline. And with this being only week 6, the dollar could decline for another 8 to 14 weeks before printing its intermediate cycle low.