Cycle Trading

Pre-Summary

The Miners reclaimed the 10 day MA after extending their daily cycle decline into day 47.

The Miners broke below the day 41 low on Thursday to extend their daily cycle decline. Thursday was day 47, placing the Miners very deep in their timing band for a DCL.  However, instead of delivering bearish follow through, the Miners formed a bullish reversal on Thursday, easing the parameters for forming a swing low. The Miners also closed back above the 10 day moving average, signaling day 47 as the potential DCL.

From a cycle perspective, confirmation will still be needed. A swing low is required before labeling day 47 as the DCL.  The Miners are attempting to stabilize after becoming stretched during the decline phase of the cycle.  However, the broader daily trend remains weak. The Miners are currently in a daily downtrend. If the Miners form a swing low and continue holding above the 10 day moving average, then the odds will increase that day 47 hosted the DCL. But a close back below the 200 day moving average would indicate a continuation of the daily downtrend and signal a cycle band sell signal.

Cycle Alignment:

• Mixed