Loading ...Takedown Tuesdays – Chicken or Egg
It has become pretty obvious over the years that Tuesday appears to be the day of choice for gold and silver price takedowns. Often the decline begins on Monday but Tuesday tends to be the most consistent with the largest actual selloff in price. I believe it is the preferred day because Tuesday is the cutoff for the COT reports that come out on Friday afternoons after trading has ended for the week. I don’t know if Tues. was chosen because it is the cutoff day for the reports or if it was chosen to use Tues. as the cutoff day for the reports because that is when they want to sell off the metals and make the reports less likely to reveal important info to the general public. I believe very short term traders could make a pretty good living buying the metals on weakness most Tuesdays and selling 2-3 days later. Perhaps some in the Goldtent community have been doing so? Today looks like it may be presenting such a trading opportunity.
Thank you for the valuable and fascinating comment. I had long thought of Comex expiration +/- 1 day as a problem period, but not Tuesdays of other parts of the month. I had also suspected a tendency for prices to be higher late Friday than mid-Monday. Your comment makes things clearer still.
I hate to try to squeeze even more information, but I will try. Do you have any sense as to when the single best part of the day on Tuesday for buying might be — all other things being equal (and of course all other things are *never* equal)–?
I believe that in short-term trading penny stocks I may try buying on Tuesdays or Wednesdays and selling on Thursdays and Fridays in part due to your comments. Again, thank you.
Of course it is impossible to get that granular but based on my observation that declines often start on Mondays and either accelerate or at least see early morning weakness on Tuesdays, I believe Tues. mornings are the usual entry point. You have to take each one on it’s own based on what happened in the preceeding days. The charts tell you where to look for entry and exit points, naturally.
Thank you very much. Your comments are in keeping with my memory or sense of what tends to happen.