INTERMARKET ANALYSIS: Call it shallow or call it deep, Monday’s shorts feel cause to weep. After so many down days, an upgrade on Goldman Sachs caused RKH, the regional bank ETF to surge which caused the S&P 500 to surge which boosted the NASDAQ 100, euro FX (euro/$U.S. pair), gold and crude oil. Who is Meredith Whitney? She is the popular-analyst-of-the-day who upgraded Goldman this morning. Is this a bull blip (shallow event) or a major turnaround (deep event)? Good question.
6-MONTH CHART: Gold rallies to its descending 10-period moving average. Crude oil continues to drag on the yellow metal.
6-month chart for August 2009 GLOBEX gold futures (source eSignal)
Richard L. Muehlberg is an analyst and day trader. He uses the lines approach: a combination of intermarket, time-of-day and linear regression analysis. Each trading day, Richard e-mails his subscribers a detailed trading diary entry covering the day’s gold, crude oil, euro FX (euro/$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.
