Never miss an analysis →

Cycle Trading

Miner Recovery

The Miners broke below the previous daily cycle low last Friday to form a failed daily cycle. Since then they have recovered.

Friday was day 16, which is too early to have expected a daily cycle low to form. But since then the Miners formed a swing low and recovered the 200 day MA on Monday. Regained the 50 day MA on Wednesday and delivered bullish follow through by closing convincingly above the 10 day MA on Thursday to signal a new daily cycle. A close above the upper daily cycle band will have us label day 16 as the daily cycle low.

5 responses to “Miner Recovery”

  1. isitpossible Avatar
    isitpossible

    How do you create daily cycle bands?

    Reply
    1. likesmoneystudies Avatar
      likesmoneystudies

      I consider my Cycle Bands settings proprietary, sorry.

      LM

      Reply
  2. Alex Avatar
    Alex

    Junior miners & Silver still have resistances at 10dma and 50dma while, more importantly, Dxy may find strong support at 200Wma of 96.02 and produce a false breakout on the downside under prior ICL –> hence a stronger dollar next week into fomc.
    All these may show DC continuation and validate day-16 of GDX as HCL.

    Reply
  3. Alex Avatar
    Alex

    ….furthermore: amazing historical correlation! Last Unscheduled fomc (if I am right) was on Oct 8, 2008, 3w after Lehman.
    What happened that with PM? Very much like now:
    – gold rose to produce a bull trap,
    – silver was contained by its 10dma resistance,
    – as soon as the bull trap on gold occurred, PM plummeted to YCLs,
    – gold led by bottoming on Oct26 while silver bottomed [uncoincidentally] 1 day before the scheduled fomc on 29oct2008.

    what to expect now? Maybe jobs report will exhaust dollar’s bear short-term as dxy shakes its 200Wma and breaks out under prior ICL allowing gold to set the…BULL TRAP –> shorting opportunity!!! Who would short gold after it goes ahead 1691 ?! Almost nobody, hence a great trade ahead.

    Reply
    1. Alex Avatar
      Alex

      and so it happens: gold bull trap & dxy rejected by 200wma [short-term].
      we are set for a repeat of what happened w/ gold btw 10.10-26.10.2008, w/ bull trap on 10.10.08.
      just like then, now we have Gold:Silver topping so that the incoming YCL of Silver would be a MAJOR bottom, a fantastic long-term buying opporunity.
      Silver bottomed on 28.10.08, gold 2 days earlier and stocks in March 2009.
      Now stocks may bottom much sooner, by the end of this month.

      Reply

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.