Cycle Trading

Stocks broke out to a new daily cycle high on Thursday.

Thursday was day 20 for the daily equity cycle. The new high on day 20 shifts the odds toward a right translated daily cycle formation. That aligns with stocks begin in a daily uptrend. Stocks formed a swing low on Thursday. Forming a swing low above the lower daily cycle band indicates that stocks will continue in their daily uptrend and signals a cycle band buy signal — using the 50 day MA as the stop.