Cycle Trading: Weekend report preview
|The Dollar
The dollar printed its lowest point on day 27 to place it in its timing band for a DCL.
The dollar formed a swing low on Wednesday. Then delivered bullish follow through on Thursday by closing convincingly above the declining trend line to confirm the new daily cycle. The dollar is in a daily downtrend. It will remain in its daily downtrend unless it can close above the upper daily cycle band.
Stocks
Stocks formed a swing low on Friday off of support from the 10 day MA.
Stocks got a bit stretched above the 10 day MA on Monday. Stocks formed a swing high on Wednesday and broke lower on Thursday, where they found support at the 10 day MA. Stocks formed a swing low on Friday, therefore we will construct the daily cycle trend line. The expectation for the first daily cycle of a new intermediate cycle is to see the cycle right translate. Stocks should break above the day 12 high and peak after day 20. Stocks are in a new daily uptrend. They will remain in their daily uptrend unless they close below the lower daily cycle band.
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