Cycle Trading

Stocks formed a swing low and closed back above the 10 day MA on Friday.

While Friday’s develop is encouraging that day 19 was the DCL, stocks remain below the 50 day MA and is in a daily downtrend.

The Nasdaq also had a bullish Friday but remain below both the 10 day MA and the 50 day MA.

The Dow formed a swing low and closed back above the 10 day MA on Friday. But remains below the 50 day MA and is in a daily downtrend.

The Russell also formed a swing low and closed back above the 10 day MA on Friday. But still remains below the 50 day MA and is in a daily downtrend.

I discuss in the Weekend Report how stocks appear to have formed their daily cycle low, intermediate cycle low and is in the process of forming the yearly cycle low. This decline into the YCL has been difficult and sentiment became very bearish. We need to keep in mind the best opportunity for gains follow a yearly cycle low — which appears to be forming. And Biotech is the early leader of the pack