Cycle Trading

Stocks are in a new daily cycle and, as I discussed in the Weekend Report, in a new intermediate cycle as well.

Stocks are approaching their previous daily cycle high. With stocks being a bit stretched above the 10 day MA, this is a likely point to see some profit taking and perhaps see stocks form a half cycle low. However, the expectation for the first daily cycle of a new intermediate cycle is to see the cycle right translate. A right translated daily cycle should peak after day 20. Stocks are in a new daily uptrend. They will remain in their daily uptrend unless they close below the lower daily cycle band.