Cycle Trading

The Dollar

The dollar had been consolidating above the 50 day MA — until Friday.

The dollar formed a swing high on Friday, closing below the converging 10 day MA and 50 day MA to signal the daily cycle decline. The peak on day 9 indicates a left translated daily cycle formation. That aligns with the dollar is being in a daily downtrend. Forming a swing high below the upper daily cycle band indicates a continuation of its daily downtrend and signals a cycle band sell signal. A break below the previous DCL of 101.48 will form a failed daily cycle and extend the intermediate cycle decline.

Stocks

The status of the daily cycle is not clear since the 10 day MA did not turn lower as stocks printed the day 35 low.

Stocks became stretched above the 10 day MA on the previous Friday.   Stocks formed a swing high on Thursday but found support at the rising 10 day MA, forming a bullish reversal. While stocks formed a swing low on Friday, they closed lower on the day — closing below the 10 day MA.   If stocks deliver bearish follow through that will signal a continuation of the daily cycle decline — making Friday day 43. What is clear is that stocks are currently in a daily uptrend. If stocks can close back above the 10 day MA that will indicate a continuation of its daily uptrend and signal a cycle band buy signal — in which we would label day 35 as the DCL. 

The entire Weekend Report can be found at Likesmoney Subscription Services

The Weekend Report discusses Dollar, Stocks, Gold, Miners, Oil, & Bonds in terms of daily, weekly and yearly cycles.
Also included in the Weekend Report is the Likesmoney CycleTracker

For subscribers click here.