The gold cycle has been topping every 34-35 trading days. It has been 36 trading days since the June $1,298 high. The sequence is ripe for a peak. Forming a swing high is the first step in achieving a top.

The Dollar dropped to major support at 93.00; prices are well-overdue for a rebound. An intermediate-term bounce in the Dollar would fit nicely with a drop in gold below $1,200.

If Metals and Miners confirm tops, I’ll look to mid-September for the next long-term buying opportunity.


-US DOLLAR- Prices tested long-term support at 93.00 and bounced. A daily close above 93.95 will form a swing low. However, I won’t consider a bottom until prices rise progressively above the 10-day EMA.

-10-YEAR YIELDS- Yields rebounded after yesterday’s FED selloff. A close above Wednesday’s 22.37 high would spark another rally. Rising yields should put pressure on metals and miners.

-GOLD- Today was the 36th trading day since the June $1,298.80 high. The previous cycles peaked between 34 and 35 trading days. Further, a Doji reversal candle appeared. A daily close below $1,253.90 (today’s low) will create a swing high and likely top.

-SILVER- Prices formed a black shooting star candle. Closing below $16.54 will make a swing high and likely top.

-GDX- Prices spiked to the upper trendline after the FED announcement. A daily close below $22.29 would indicate a top.

-GDXJ- Closing below $32.59 (FED announcement 2:00 PM low) would support the start of another decline.

-DUST- The cycle timing supports the potential for a low. I’ll enter a small position if gold forms a swing high.

-JDST- Prices spiked below the trendline but managed to close above it. I’ll enter a small position if/when gold forms a swing high.

-SPY- Prices spiked lower but rallied into the close. A test of the 250 level seems logical before a more meaningful correction.

-WTIC- We are approaching the 200-day MA. A test of the trendline around $50.00 is possible. Our cycle work purposed another decline into September or October. A clear breakout above $50.00 would challenge that outlook.

-XLE- Prices closed above the trendline. Progressive closes above the June $67.09 high would support a meaningful low.

I will enter small, short-term trading positions in DUST and JDST if gold completes a swing high. I’ll alert members before and after I make a trade.

The Weekend Newsletter should be out Saturday.