One thing I like to do on Friday is look at markets that are strong going into the weekend. After yesterday's implosion in the marketplace, I thought that was going to be a hard thing to do. Thanks to MarketClub's Smart Scan technology, I was able to find five socks that bucked yesterday's downturn and are looking very good.
Now you may remember the rules I have talked about for "The 52-Week New Highs on Friday" weekend trade, but just in case you don't know what they are, here they are again.
Rule #1: On a new 52-week high, when the market closes at or near its high on a Friday, buy long and go home for the weekend.
Rule #2: Exit the long position on the opening the following Tuesday.
Rule #3: If the market opens lower on Monday, exit this position immediately.
These are the only three rules you need to trade "The 52-Week New Highs on Friday" successfully.
I invite you to watch the video and look at the five stocks I found using Smart Scan. Then 10 to 15 minutes before the market closes today you can see which stocks are closing at or near their highs for the day.
Have a great weekend everyone,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
Interesting that your 'smart scan' didn't pick up GoProl (GPRO) which made a new all time high and is showing incredible strength. It shows a much better pattern than any of the examples given in the video. It was up each day on the week (22% over 5 days), closed within .30 cents of its all time high earlier in the day (82.40) and would thus be a perfect candidate for your '52 week high trading rule'. I'll consider selling on Tuesday, since it's now double what it was 6 weeks ago, but do you really want to sell this thing? So far it's been best to just let it continue going up and up, and can then sell on a stop if/when it runs out of juice.
Little confused when you say "when the market closes at or near its high on a Friday" do you mean close to the high of the day or the 52 week high?
Facebook closed at $78.79 the high of the day was $78.84 and the 52 week high is $78.94. So which number am I looking at the day high $78.84 or the 52 week high $78.94?
What is consider close? How many points between the close and the high?
Thanks for the question Ian. You want to be as close to the 52 week as possible.
FB would have been a great candidate today at the $78.8 level. There's no hard fast rule for %, just as close as you can get. In this case with the 52 high @ $78.94 anywhere in the $78 range would be good to go.
Cheers,
Jeremy