Cycle Trading

Stocks printed their lowest point on Wednesday, day 30. That places stocks in the early part of its timing band for a DCL.

Stocks formed a swing low on and closed back above the 10 day MA on Thursday. I would have preferred to see a deeper decline, something that caused the 10 day MA to turn lower. However with support from the 50 day MA and next week’s FOMC meeting, this may be all of the correction we will see.

Stocks are currently in a daily uptrend. Forming a swing low above the lower daily cycle band and closing back above the10 day MA indicates a continuation of the daily uptrend and signals a cycle band buy signal. So we will label day 30 as the DCL.