Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2010 by Patrick Mikula All Rights Reserved
Next week is the last week of July 2010, running from July 26 to July 30. The current active futures contract is the August 2010 contract. Next Tuesday, July 27, the August gold option expires and on Friday, July 30, the August futures contract has its first notice day. The dates just before the option expiration and the day of option expiration often see volatile trading. A Similar volatility sometimes occurs around the first notice day of the most traded futures contract. Around the first notice, day traders will close out their positions in the August 2010 contract and will open new a position in the December 2010 futures contract. This should create an exciting period of trading next week.
On the first chart below, I have added the Horoscope index using the Gold natal date. This is a 60 minute chart. I have added two blue arrow identifying where the Horoscope Index moves down to the lower boundary on the Horoscope Index. This indicates the gold market should have a Change In Trend (CIT) at these points. These points are on Monday, July 26 – one day before the gold option expiration.

Gold Next Week #1
The next chart shows the 60 minute chart covering next week from Monday, July 26 to Friday, July 30. The blue arrows on this chart identify when the Horoscope Index moves down to the lower boundary. This occurs on Monday the 26th, Wednesday the 28th and Friday the 30th and should cause a CIT. The August gold option is labeled on this chart on July 27 and the futures first notice day is labeled on July 30th.

Next Week Gold #2
The next gold chart is a 20 minute gold chart for the August contract. The last day on this chart is Friday, July 23. On this chart I have added my Short Term Delta (STD) count for gold. On Friday there was a #1 count pivot but, this occurred after the market closed for the weekend. This means the effect of the #1 pivot should occur on Monday, July 26th.

Gold Next Week #3
Below is our final chart. This is a daily gold chart. On this chart I have again added the horoscope index. The Horoscope Index moves below the lower boundary in the first week of August. At this time the traders will be switching out of the August contract to the next most active contract.

Next Week Gold #4
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