Cycle Trading

The Miners formed a bullish reversal on Monday.

Monday was day 32, placing the Miners in their timing band for a DCL. A swing low and close above the converging 10 day MA and 50 day MA would have us label day 32 as the DCL. And why the reason why the Miners could close above the converging 10 day MA and 50 day MA could be the dollar.

The dollar printed its lowest point on day 17, which is early to expect a DCL to form. However, the dollar closed convincingly above both the 200 day MA and the 10 day MA on Friday then formed a swing low on Tuesday, closing above the 50 day MA to signal day 17 as the DCL. But the dollar is in the process of forming a bearish reversal. With the dollar currently in a daily downtrend, a swing high and a close below the 50 day MA would indicate a continuation of its daily downtrend and signal a cycle band sell signal for the dollar.