INTERMARKET ANALYSIS: When today’s NYSE opening bell rang, gold trading immediately turned dull: aggressive buyers quit early. Gold trading marked time to a relatively flat close. This week’s aggressive gold buyers, happy with their week’s profits, began cashing out yesterday. Today’s gold trading was practically a non-event. This has been a strong week for gold but from the long side it is disturbing to see a second day of sluggish trading despite continued strength in the NASDAQ 100.
6-MONTH CHART: The 50-period moving average is this week’s finish line (see my July 16 post for more on gold’s 6-month 50-period moving average).
6-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 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 (euro/$U.S. pair), eurodollars, bonds, the NASDAQ and S&P. Study tonight. Profit tomorrow. Visit his site at www.DayTradingWithLinesInTheSky.com.
