Cycle Trading: Stocks Keep Going
|Stocks have been on a tear since October after the Fed began Repo operations.
Stocks barely gave us a recognizable daily cycle low in early December. Stocks have since continued rallying. Stocks formed a swing high on Wednesday, day 34. That does place stocks in their timing band for a daily cycle decline. There are bearish divergences developing on the oscillators which normally precede a cycle decline. So Thursday's
swing high could send stocks to seek out their daily cycle low. A close below the 10 day MA would indicate that the daily cycle is in decline. However, if stocks form a swing low and continue higher, then stops could be raised to Thursday's low of 3301.87.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.