INTERMARKET ANALYSIS: The NASDAQ 100, S&P 500 and crude oil are crumbling. 1:00 p.m. (Eastern Time): deep-pocket gold bulls stage a "flight-to-safety" bear trap: gold buyers bid aggressively, hoping to force gold shorts to cover. Gold bears are initially surprised then offer aggressively. The bear trap fails. Gold closes low.
6-MONTH CHART: Gold is punching support at 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. Each trading day, Richard e-mails his subscribers a detailed, four-page review covering the day's gold, crude oil, euro FX (euro/$U.S. pair), eurodollar, bond, NASDAQ 100 and S&P 500 action, including an end-of-day capture of his unique 42-chart trading screen. For more information, visit his website at www.DayTradingWithLinesInTheSky.com.
