Cycle trading: Stocks drop

LikesMoney Independent Analyst

Stocks dropped on Thursday.

Stocks have been very bullish as they are in the advancing phase of their intermediate cycle. During the advancing phase of the intermediate cycle RSI does not stay oversold for long. So if RSI reverses quickly then it is likely that stocks are declining into a half cycle low.

However, closing below the 200 day MA has me thinking something more sinister is afoot. Stocks gapped below the 10 day MA to close 5.89% lower on Thursday. This has started to turn the 10 day MA lower - which signals the daily cycle decline. A peak on day 16 has the possibility of resulting in a left translated daily cycle formation, which would signal the start of the intermediate cycle decline. Which is something that I plan to discuss in the Weekend Report.

Author

LikesMoney

Independent Analyst

Assets (such as stocks, gold, and the dollar) have identifiable cycles.

EUR/USD hits two-day highs near 1.1820

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GBP/USD reclaims 1.3600 and above

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Gold climbs further, focus is back to 45,000

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Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

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XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.