Cycle Trading

I will be using KOL as a proxy for Coal.
Coal has been forming a yearly cycle low on average every 14.5. years over the past 10 years.

March is month 15, which places coal right in its timing band for a yearly cycle low.

The weekly cycle is a bit erratic so we will need to rely on some of our other tools to identify a weekly low. But coal did print its lowest point on week 17, which is in the early part of its timing band for an intermediate cycle low. Oil has formed a TSI Bullish Weekly Crossover for from a level that has seen other intermediate cycle lows form. And as of Monday’s close, it is just 2 cents from forming a weekly swing low.

The daily chart shows that coal has formed a swing low, closed above the 10 day MA, and has begun to turn the 10 DMA higher to signal that day 35 hosted the daily cycle low.

To recap:
* Coal is in its timing band for a yearly cycle low.
* Coal is only 2 cent away from forming a weekly swing low to indicate a new intermediate cycle.
* Coal has just signaled the start of a new daily cycle.

One way to invest would be to look into the coal mining stocks such as HCC or ARCH.
A simpler way would be the coal ETF – KOL — which happens to sport a 13 % dividend.