Cycle Trading

Stocks closed below both the 5000 level and the 10 day MA on Tuesday to signal the daily cycle decline. Tuesday was day 26, placing stocks in the early part of its timing band for a DCL.  Stocks should turn the day 10 MA lower in order to complete its daily cycle decline — however that did not happen.

Stocks formed a swing low on Wednesday, closing back above the 10 day MA and the 5000 level.  Stocks delivered bullish follow through on Thursday by closing convincingly above the 5000 level to signal that day 26 was an early DCL. Stocks are currently in a daily uptrend. Closing back above the 5000 level indicates a continuation of its daily uptrend and signals a cycle band buy signal.

By the way did you notice how Tesla did today?

Tesla peaked on July 19th and has since been in a downtrend. Tesla gapped lower in late January and then proceeded to consolidate below the 200 level — until Thursday. Tesla broke bullishly out of consolidation on Thursday, rallying for 6.22%.

Tesla also formed a weekly swing low. It appears that the bottom is in for Tesla.