Will the Federal Reserve Open Market Committee announce an accommodative, neutral or restrictive interest rate policy on Aug. 12? Today, the markets are faced with rumors. On Aug. 12, the markets will face fact. Dominant euro FX (EUR/USD) traders began selling the euro aggressively on Aug. 7. Today, the selling spread to gold. Gold day and swing traders are gaming the rumors. My diary entry for today, Aug. 10 shows and tells the rest of the story.
6-month chart for GLD (the gold exchange-traded fund) (source eSignal)
Richard L. Muehlberg is an analyst and a futures/ETF day trader. He uses the lines approach: a mix of intermarket, time-of-day and linear regression analysis. Each trading day, Richard e-mails his subscribers a detailed diary entry covering gold, crude oil, euro FX (EUR/USD), eurodollars, bonds, the NASDAQ and S&P. Visit his site at www.DayTradingWithLinesInTheSky.com.
