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Frequently Asked Questions

Everything about cyclical investing & Signycle

Quick answers to the most common questions about macro signals, cyclical stocks and how Signycle works.

What is a cyclical stock?

A cyclical stock is a company whose earnings and share price move closely with a commodity or economic cycle. Oil companies move with Brent crude, shipping companies with freight rates, miners with metal prices. They fall sharply in downturns and recover strongly — the key is timing the entry and exit.

What is the Baltic Dry Index (BDI)?

The BDI is a daily benchmark from the Baltic Exchange in London measuring the cost of shipping dry bulk commodities — iron ore, coal, grain — globally. A rising BDI signals increasing demand for raw materials. Signycle tracks it for dry bulk shipping stocks including Star Bulk, Golden Ocean and Himalaya Shipping.

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What is a VLCC rate?

A VLCC (Very Large Crude Carrier) rate is the daily hire paid for a large oil tanker, quoted in USD per day. When Hormuz or Red Sea disruptions occur, VLCC rates spike because ships must sail longer routes. Signycle's SELL threshold is $75,000/day — the level at which tanker stocks have historically peaked.

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What is Brent crude oil?

Brent crude is the global oil price benchmark, sourced from the North Sea and used to price approximately two thirds of internationally traded oil. It directly drives European oil company earnings. Signycle BUY signal: below $50/barrel. SELL signal: above $105/barrel — a threshold reached in March 2026 during the Hormuz crisis.

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What is LME copper price?

The LME copper price is the London Metal Exchange benchmark for copper, quoted in USD per tonne. Copper is used in EVs, renewables, construction and electronics — making it a key global growth indicator. Signycle BUY: below $5,000/t. SELL: above $9,000/t. Currently at $12,043/t — SELL zone.

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How does Signycle determine buy and sell signals?

Signycle thresholds are calibrated from 3–5 complete historical commodity cycles going back to 2009–2012. Each threshold represents the price level at which the relevant commodity has historically marked a major cycle turn. They are not predictions — they are historically observed turning points used as systematic reference levels.

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What is the EUR 10-year rate signal?

The EUR 10-year rate tracks the yield on 10-year German Bunds — the eurozone's benchmark interest rate. Lower rates reduce financing costs for renewable energy projects. Signycle BUY: below 1.5% (good for renewables). SELL: above 3.5%. This signal drove Nibe +1,218% and Verbund +555% in the 2014–2023 low-rate cycle.

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What is WFE spending?

WFE (Wafer Fab Equipment) spending is total annual investment by chipmakers in manufacturing equipment. When chipmakers invest heavily, equipment makers like ASML, ASM International and BE Semiconductor benefit. Signycle BUY: below $55bn/year. SELL: above $95bn/year.

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What is the SCFI container index?

The Shanghai Containerized Freight Index measures spot container freight rates from Shanghai globally. It drives revenues for Maersk and Hapag-Lloyd. Signycle BUY: below 850 points. SELL: above 2,800 points. During the COVID supercycle the SCFI exceeded 5,000 — sending Hapag-Lloyd +476% in 30 months.

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What is NBSK pulp price?

NBSK (Northern Bleached Softwood Kraft) is the global benchmark for wood pulp — used in paper, cardboard and packaging. NBSK prices drive Finnish and Portuguese pulp companies like Stora Enso, UPM, Navigator and Altri. Signycle BUY: below $800/t. SELL: above $1,400/t.

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What is offshore rig utilisation?

Offshore rig utilisation is the percentage of the global drilling fleet that is actively working. Above 85%, day rates surge and drilling stocks soar. Below 58%, rigs stack idle. Signycle tracks this for Borr Drilling (+963% in 42 months) and Odfjell Drilling (+189%).

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What is the NATO defence spending signal?

Signycle tracks average NATO member defence spending as a percentage of GDP. When spending accelerates above 2.5% and trending toward 3–4%, defence companies benefit from expanding order books. This signal drove Rheinmetall +767% and Leonardo +273% from 2022 to 2025.

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What is urea price?

Urea is the world's most widely used nitrogen fertilizer. When urea prices are low (below $230/t), fertilizer companies like Yara and K+S trade at depressed valuations. When urea prices recover above $620/t, earnings surge. K+S delivered +267% on the 2020–2022 urea cycle.

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Is Signycle financial advice?

No. Signycle provides historical cycle data and macro signal tracking for educational and informational purposes only. Past cycle returns do not guarantee future returns. Always do your own research and consider consulting a licensed financial advisor.

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Is Signycle a finished product or still in development? +
The core platform is live and free to use today. All 18 signals, 250+ stocks, 42+ exchanges, the Cycle Dashboard, Signal Backtest, Stock Comparison and Signal Calendar are fully operational. "Early Access" refers to Signycle Pro — a paid tier currently in development that will add real-time threshold alerts, a weekly signal report, portfolio overlay tools and API access. The free platform has no planned limitations.
What does "not financial advice" actually mean? +
Signycle is a data and research tool. We show you where commodity prices are relative to their historical BUY and SELL thresholds — we do not tell you to buy or sell any specific security. "Not financial advice" means: do not make investment decisions based solely on Signycle data. The signals have a strong historical track record on a directional basis, but they cannot predict the future, and you should always consult a qualified financial adviser and consider your own circumstances before investing.
How is the Cycle Score (0–100) calculated? +
Each of the 18 signals is scored from 0 (at its historical BUY level) to 100 (at its historical SELL level) based on where the current value sits in the BUY-to-SELL range. The Cycle Score is the simple average across all 18 signals. A score of 0–25 = Deep BUY territory. 25–45 = Early Expansion. 45–65 = Mid Cycle. 65–80 = Late Expansion. 80–100 = Distribution phase. The current score is 82/100 — Late Expansion.
How does Signycle compare to Bloomberg or Koyfin? +
Bloomberg Terminal costs ~$25,000/year and provides comprehensive financial data across all asset classes — but has no cycle-specific signal thresholds or stock-to-signal mapping. Koyfin costs ~$500–1,200/year and is excellent for fundamental stock research — but does not focus on commodity cycles or historical BUY/SELL thresholds. MacroMicro covers 40 million macro indicators — broader than Signycle, but with no sector-specific stock mapping or clear actionable thresholds. Signycle is free, focused on cyclical stocks, and the only platform that maps 250+ stocks to their underlying commodity signal with historical BUY and SELL thresholds.