Cycle Trading: A major bearish day for the miners

The Miners delivered bearish follow through on Monday by breaking convincingly below the 200 day MA to close 4.29% lower for the day.

This should trigger a bloodbath phase for the Miners that can last 5 to 7 days – which would bring the Miners in the early part of their timing band for a daily cycle low. This just happens to coincide with the dollar beginning a new daily cycle.

The dollar printed a bullish reversal on Monday. This was day 23, placing the dollar in its timing band for a daily cycle low. Monday’s bullish reversal has eased the parameters for forming a swing low. A break above 92.79 will form a swing low to signal a new daily cycle. However, in the Weekend Report we will discuss how the dollar is declining into an intermediate cycle low which give us the expectation for the new daily cycle for the dollar to left translate and fail. A left translated cycle typically peaks by day 8, which aligns with the anticipated bloodbath phase for the Miners. So once the dollar forms a swing high, that will signal a potential DCL for the Miners. Which will be the next major buying opportunity for the Miners.