Tuesday 1 October 2019

Cycles supporting consolidations

Cycles show how regular time and price periods work within price action, they help thread the needle as  to where price may move to next.
image1 Cycles with Wyckoff logic help expose how fundamentals are working through price action to motivate price to a new level. 


Here are some examples of cycles with other readtheticker indicators. 


Chart 1: If the SP500 trends higher on QE4 and gold holds up, then gold stocks should do well, and most likely out perform gold itself.


XAU




Chart 2: The dollar bulls suggest there is a dollar shortage, and as the supply of dollars is low the price should move higher as demand is high. The dollar bears say there is a large supply of dollars arriving from US deficits and QE4, hence the price will fall. Of course is a matter of timing as to which happens first. Watching and waiting.  


DXY





Chart 3: Gold is moving higher in line with the build of negative sovereign debt, the size of overall debt, constant money printing, US deficit risk, and elevated market risk. Cycles are working well with gold.


GLD






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