Cycle trading: The weekend report preview
|The dollar
After peaking on day 24, the dollar printed its lowest point on Thursday, day 29. That places the dollar in its timing band for a daily cycle low.
The high on day 24 assures us of a right translated daily cycle formation which gives us the expectation of the dollar printing a higher low. A break above Thursday’s high of 92.50 will form a daily swing low. Then a close back above the 200 day MA will indicate a new daily cycle. The dollar currently is in a daily uptrend. If the dollar forms a swing low above the lower daily cycle band then the dollar will remain in its daily uptrend and trigger a cycle band buy signal.
Stocks
Stocks got a bit stretched above the 10 day MA on Monday. Stocks consolidated Tuesday and Wednesday.
Stocks broke higher on Thursday and delivered bullish follow-through on Friday. The new high on day 25 assures us of a right translated daily cycle formation. Stocks are in a strong daily uptrend and will remain so unless they close back below the lower daily cycle band
The 10 day MA has crossed above the 3975 resistance level, so now the 10 day MA can be used as the stop.
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