Cycle Trading: Weekend Report Preview
|The Dollar
The dollar closed below the 200 day MA on Friday.
The peak day 7 indicates a left translated daily cycle formation which aligns with the dollar being in a daily downtrend. Closing below the 200 day MA signals a continuation of the intermediate cycle decline. A break below the day 26 low of 96.89 will form a failed daily cycle to confirm the continuation of the intermediate cycle decline.
Stocks
Stocks gapped higher on Monday.
Stocks then coiled though Thursday, backing filling the gap and allowing the 10 day MA to catch up to price. Then stocks broke out to a new high on Friday. The new high on day 21 locks in right translated daily cycle formation which aligns with stocks being in a daily uptrend. The swing low that formed on Friday indicates a continuation of the daily uptrend and triggers a cycle band buy signal.
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