Cycle Trading

We are getting mixed messages this week.

The semi’s formed a weekly swing low but found resistance at the declining weekly trend line. The semi’s are in a weekly uptrend. A bullish break out of consolidation will indicate a continuation of its weekly uptrend and signal a weekly cycle band buy signal.

Transports & Financials Concern

While stocks continue to make new highs, both the transports and the financials are diverging from stocks — suggesting a correction is on the horizon. So while the current daily cycle for stocks is right translated, the odds for the next daily cycle being left translated look certain.