Cycle Trading

Gold peaked on August 10th, then began its daily cycle decline.

Gold printed its lowest point on day 30, placing it in its timing band for a DCL. While gold has formed a daily swing low, gold still needs to break above the declining trend line to confirm the new daily cycle.

Stocks peaked on August 16th then began its daily cycle decline. Stocks formed a lower low on Tuesday to extend its daily cycle decline. Tuesday was day 54, placing stocks deep in their timing band for a daily cycle low.

Both gold and stocks have been trading inversely with the dollar. The dollar bottomed on August 11th. And since the dollar began to rally, both gold and stocks began their respective daily cycle declines. I suspect that both gold and stocks are not likely to regain their footing until the dollar begins its daily cycle decline.