INTERMARKET ANALYSIS: Yesterday's advice holds. Gold is churning. Eurodollars are trending higher. Choice one: Be in gold and get whipsawed as a swing trader. Choice two: Be in cash (long Eurodollars) and wait for a breakout in gold.
11-DAY LINEAR REGRESSION CHART: The 11-day channel for gold is neutral (0).
6-MONTH CHART: Gold is range trading between its descending 20-period moving average and its June 2009 lows.
Six-month chart for August 2009 GLOBEX gold futures (source eSignal)
Richard L. Muehlberg is an analyst and day trader. He uses the lines approach: a combination of intermarket, time-of-day and linear regression channel analysis. He offers a detailed daily diary covering gold, crude oil, euro FX (euro/$U.S. pair), eurodollars, bonds, the NASDAQ 100 and S&P 500 through his website at www.DayTradingWithLinesInTheSky.com.
