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. Cycles with Wyckoff logic help expose how fundamentals are working through price action to motivate the price to a new level. 

Here are some examples of cycles with other indicators.

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

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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.

(Click on image to enlarge)

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.

(Click on image to enlarge)

Fundamentals are important, and so is market timing.

Investing Quote...

..."Mathematics is the only exact science. All power under heaven and on earth is given to the man who masters the simple science of mathematics."...

William D Gann

..“Because of the extreme challenge, one must commit full attention to it.” Market speculation is “no different than trying to be a successful doctor or lawyer … you simply must devote yourself full-time to the study of your craft”...

Bernard Baruch

...“To me, the 'tape' is the final arbiter of any investment decision. I have a cardinal rule: Never fight the tape!”...

Martin Zweig

..."This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President Woodrow Wilson signs this bill, the invisible government of the monetary power will be legalized....the worst legislative crime of the ages is perpetrated by this banking and currency bill."...

Charles August Lindbergh Snr

..“How many millionaires do you know who have become wealthy by investing in savings accounts?”..

Robert G Allen

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