Two ways to trade Gold futures are the Gold Spike II trading system, which is long today and the Friday Reversal trading system. One of the market observations that we make each week is an “after hours” rally in Gold on Fridays.
The Friday Reversal system is a new strategy that we researched over the weekend in Gold and Crude Oil and found that when these markets are down on the week, then there is a tendency to rally on Fridays. This can be short covering or profit taking from the shorts going into the weekend. There was some pretty big movements in Gold and Crude Oil this past Friday on the long side. Part of this was based on the “Syria” trade of going long into the weekend (or covering shorts) in case there is an act of war over the weekend and a gap up on Sunday night in these markets.