Tuesday
is statistically the strongest market day. Negative events
are often digested by the market come Tuesday. Many major
investors implement strategies to benefit from the Tuesday
effect.
For diverse reasons the
gold price displays a calendar pattern. This pattern
occurs nearly every week. Several well-known investors use
this pattern to their advantage.
The end of month effect
is discussed in many academic papers. All agree stocks
tend to go up most in the first days and the last days of
the month. The strategy benefits from this market effect.
The USD tends to be
stronger than the GBP in the first half of Tuesday. This
lesser-known calendar pattern is used by the strategy to
benefit every week from the dollar’s temporary strength.