Cycle Trading: Uptrends & Downtrends
|The Miners have been closing above the upper daily cycle band to signal that they are in a daily uptrend. They will continue in their uptrend until they close below the lower daily cycle band.
The Miners printed another higher high on Thursday. At 43 days the Miners are very late in their timing band to print a daily cycle low. The True Strength Indicator is beginning to rollover signaling that a daily cycle decline is imminent. The new high on day 43 assures us of a right translated daily cycle formation. Therefore once a decline into a daily cycle low begins, the decline should be brief and then we can expect the Miners to go on to break out to new highs.
And the dollar collapsing is, in part, driving the Miners higher.
The dollar has been closing below the lower daily cycle band, which indicates that the dollar is in a daily downtrend. The dollar will continue in its daily downtrend until it can close above the upper daily cycle band. With 7 of the previous 9 daily cycles stretching pass 30 days and Thursday being only day 25, there are good odds for the dollar to continue lower for the next 2 to 3 weeks before printing a final daily cycle low.
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