Cycle Trading

We observed here that when the Miners closed below the lower daily cycle band on September 9th that they were beginning their intermediate cycle decline. We also discussed here how a bearish RSI pattern was beginning to emerge, which was another signal of the pending intermediate cycle decline.

The Miners broke below the previous daily cycle low on Monday to form a failed daily cycle which confirms that intermediate cycle decline. Monday was only day 11 for the daily Miner cycle. Which means that the Miners should trend lower for another 2 to 4 weeks before printing its intermediate cycle low.

The only thing that is not in agreement is the bullish divergence that we see developing on the True Strength Indicator. Typically these bullish divergences signal that the cycle low is near. In the Mid-Week Update I plan to break down where the Miners are in their intermediate cycle and what this bullish divergence may be telling us.