Cycle Trading: Waiting For The Fat Pitch
|Stocks are till caught between the 10 week MA and the 50 week MA. We will need to be a convincing break either above the 10 week MA or below the 50 week MA trending move to develop.
This is week 13 for the intermediate equity cycle. The peak on week 7 sets stocks up for a left translated daily cycle formation. With the 10 week MA beginning to move lower, it looks more and more like stocks are beginning their intermediate cycle decline.
Tuesday was day 20 for the daily equity cycle. The peak on day 6 indicates a left translated daily cycle formation. Even if stocks were to break above the day 6 high to right translate this daily cycle, it is not likely for stocks to be able sustain a trending move. The best strategy at this point may be to wait for stocks to print their intermediate cycle low. A failed daily cycle is needed for an intermediate cycle low. A break below the previous daily cycle low of 2822.12 will form a failed daily cycle. Once that happens we can start to look for that fat pitch.
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.