Cycle Trading: Timing Band

LikesMoney Independent Analyst

Tuesday was day 33 for the daily equity cycle. That places stocks in their timing band to seek out a daily cycle low.

Stocks printed their daily cycle high last Thursday, day 31, which assures us of a right translated daily cycle formation. But stocks have since closed lower for 2 straight days, which eases the parameters for forming a daily swing high. A break below 2450.02 forms a swing high. Then a break below the daily cycle trend line will confirm that stocks are in a daily cycle decline.

Stocks continue to close above the upper daily cycle band indicating that they are in a daily uptrend. As long as stocks form a swing low above the lower daily cycle band, then stocks will remain in their daily uptrend. And under that scenario, the dip should be bought.

The transports have already confirmed their daily cycle decline.

Tuesday was day 31 for the transports daily cycle. That places them in their timing band to seek out a daily cycle low. The transports have already formed a swing high and broke below the daily cycle trend line to confirm that they have entered their daily cycle decline. The transports have also been in a daily uptrend. They will remain so unless they close below the lower daily cycle band.

Author

LikesMoney

Independent Analyst

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

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

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.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

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.