The 1/22/14 Morning Report

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The dollar formed a swing high overnight off the day 16 peak.

The dollar on day 16 formed a bearish reversal. At 16 days the dollar is 2 days shy of entering its timing band for a daily cycle low. The dollar may not have the energy to break above the 200 MA being this late in the daily cycle. But with a peak on day 16 the odds are likely that this daily cycle will form has a right translated cycle. With the expectation of the next daily cycle printing a higher daily cycle high. So, with the swing high in hand, we will now watch for a break of the daily cycle trend line to confirm that the daily cycle is in decline.

Gold set another daily cycle high on Tuesday, day 13. However, gold is running into resistance at the 1260 level. Gold is still 5 days shy of entering its timing band for a daily cycle low. Should day 13 remain as the daily cycle high, it is not certain at this point if this daily cycle will form in either a right or left translated manner. A clear and convincing break below 1235.80 would signal that the daily cycle is in decline. However, if stocks turn lower, that could send gold higher.

The current peak for the daily equity cycle remains at day 18. There is a bearish divergence that is continuing to develop on the True Strength Indicator which is signaling for a daily cycle decline. A break below the daily cycle trend line will confirm the daily cycle decline.

Here is a sample of something that I normally provide to subscribers.

This is a look at my FAS Buy/Sell Indicator. It is a signal that I have developed that helps to identify equity cycle tops. Lately it has been delivering a series of sell signals.

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