The 8/27/22 Weekend Report Preview

The Dollar 

The dollar became stretched above the 10 day MA on Tuesday.

The dollar consolidated this week which allowed the 10 day MA to catch up to price. The dollar then formed a bullish reversal on Friday off support from the rising 10 day MA. The dollar is currently in a daily uptrend.  If the dollar forms a swing low above the upper daily cycle band that will indicate a continuation of the daily uptrend and signal a cycle band buy signal. A break above 108.82 will form a daily swing low.

Stocks

Stocks were rejected by the 10 day MA on Friday.

Stocks formed a swing high on Friday to break below Wednesday’s low. This negates the swing low formed on Thursday to extend the daily cycle decline. Friday was day 48, that places stocks deep in their timing band for a DCL. Stocks have now retraced to the 38% fib level.  Stocks should break below the blue daily cycle trend line in order to complete their daily cycle decline. However, we need to be alert to the possibility of the 50 day MA providing support for the DCL to form. Stocks closed below the lower daily cycle band on Friday. Closing below the lower daily cycle band ends the daily uptrend and beings a daily downtrend.

The entire Weekend Report can be found at Likesmoney Subscription Services

The Weekend Report discusses Dollar, Stocks, Gold, Miners, Oil, & Bonds in terms of daily, weekly and yearly cycles.
Also included in the Weekend Report is the Likesmoney CycleTracker

For subscribers click here.

Stocks Deliver Buy Signal

Stocks formed a swing low on Thursday.

Stocks have been in a daily uptrend that has been characterized by highs forming above the upper daily cycle band and lows forming above the lower daily cycle band. Stocks formed a daily swing low on Thusday. Forming a swing low above the lower daily cycle band indicates a continuation of the daily uptrend and signals a cycle band buy signal.  With stocks approaching resistance from both the 10 day MA and the 200 day MA, one strategy would be to buy the swing low, with a stop at Wednesday’s low. Then positions can be added to with a close above the 10 day MA and then again with a close above the 200 day MA.

Biotech About To Deliver Another Buy Signal

Biotech has been in a daily uptrend that has been characterized by highs forming above the upper daily cycle band and lows forming above the lower daily cycle band. Biotech formed a daily swing low on Tuesday. Forming a swing low above the lower daily cycle band indicates a continuation of the daily uptrend and signals a cycle band buy signal.

Biotech closed higher on Wednesday, running into resistance at the converging 10 day MA and 200 day MA. A close above the converging MA’s will indicate a continuation of the daily uptrend and will signal another cycle band buy signal.

Biotech Buy Signal

Biotech delivered a buy signal on Tuesday.

Biotech has been in a daily uptrend that has been characterized by highs forming above the upper daily cycle band and lows forming above the lower daily cycle band. Biotech formed a daily swing low on Tuesday. Forming a swing low above the lower daily cycle band indicates a continuation of the daily uptrend and signals a cycle band buy signal. Long entries can be entered with a stop at Monday’s low.

False Buy Signal ?

Stocks formed a daily swing low on Wednesday.

Stocks are currently in a daily uptrend. Forming a swing low above the upper daily cycle band indicates a continuation of the daily uptrend and signals a cycle band buy signal.

However — Wednesday was day 36 for the daily cycle, placing stocks in their timing band for a daily cycle low. Stocks still need to complete their daily cycle decline, which means that any gains from Wednesday’s swing low will likely soon be given back. A stop can be placed at the 4150 breakout level should stocks reverse to begin their daily cycle decline,

Gold Delivers Buy Signal

Gold rallied for 1.72% on Thursday to close above the 50 day MA.

Notice how RSI 05 is embedding in overbought.  That signals that gold has begun the advancing phase of a new intermediate cycle.  That aligns with gold being in a daily uptrend. Forming a swing low and above the upper daily cycle band indicates a continuation of the daily uptrend. and signals a cycle band buy signal.

False Breakout On Bonds

Bonds broke out to a new daily cycle high on Friday, but then lost the breakout out on Monday.

Monday was day 25 for the daily bond cycle, placing it in the early part of its timing band for a daily cycle low. Losing the breakout indicates that bonds are feeling the gravitational pull of the pending DCL.

If bonds delver bearish follow through and close below the 10 day MA that would indicate the daily cycle decline. Bonds are currently in a daily uptrend. If bonds form a swing low above the lower daily cycle band then they will remain in their daily uptrend and signal a cycle band buy signal.

The 7/23/22 Weekend Report Preview

The Dollar

The dollar closed below the 10 day MA on Monday then continued lower through Friday.

Friday was day 18 for the daily dollar cycle, which places the dollar in the early part of its timing band for a DCL. The dollar really needs to turn the 10 day MA lower to signal the daily cycle decline. However, the dollar is currently in a daily uptrend. If the dollar forms a swing low above the lower daily cycle band then it will remain in its daily uptrend and signal a cycle band buy signal — in which we would label day 18 as a half cycle low. A break above 107.25 will form a daily swing low.

Stocks

Stocks closed above the declining trend line on Tuesday, then continued higher through Friday.

The new high on day 23 assures us of a right translated daily cycle.  Stocks are a bit stretched above the 10 day MA and may crawl along the 50 day MA to allow the 10 day MA to catch up to price.  However, a close below the converging 10 day MA and 50 day MA would signal the daily cycle decline.  Stocks are currently in a daily uptrend.  They will remain in their daily uptrend unless they close below the lower daily cycle band. 

The entire Weekend Report can be found at Likesmoney Subscription Services

The Weekend Report discusses Dollar, Stocks, Gold, Miners, Oil, & Bonds in terms of daily, weekly and yearly cycles.
Also included in the Weekend Report is the Likesmoney CycleTracker

For subscribers click here.

Biotech Buying Opportunity

Biotech has been leading stocks out of the recent cycle low.

Biotech became a bit stretched above the 10 day MA on Friday. Biotech retraced Monday and Tuesday, tagging the 10 day MA on Tuesday. Biotech is currently in a daily uptrend. If Biotech forms a swing low above the upper daily cycle band then that will indicate a continuation of the daily uptrend and signal a cycle band buy signal. A break above 124.64 will form a swing low.