Cycle Trading

The Miners formed a swing low and closed above the 10 day MA on Thursday.

The Miners are currently in a daily uptrend. Forming a swing low above the lower daily cycle band and closing back above the 10 day MA that indicates a continuation of its daily uptrend and signals a cycle band buy signal — so we would label day 23 as the DCL. 

An interesting note is that the Miners did this as the dollar printed another higher daily cycle high.

The dollar is stretched above the 10 day MA as is running into the 103 resistance level, with resistance from the 200 day MA just above it. The dollar will likely need to consolidate to allow the 10 day MA time to catch up to price. However, Thursday’s bullish behavior of the Miners suggest a change on the dollar — which is something that I pan to discuss in the Weekend Report.