I wanted to do this update to share with you exactly what would have happened had you followed everything I said in last Friday’s video.
One of the important elements to look for when a stock is making a 52-week high is that it closes very close to its highs for the day. An example of this would be Home Depot, which closed very close to its highs last Friday. That's the type of stock you should be looking for to go home long over the weekend.
Of the 12 stocks that I showcased last Friday, only three made the cut and matched that criteria and they are, Alphabet Inc., Home Depot and the Goodyear Tire & Rubber Company.
One thing I like to look at are strong trending stocks and nothing indicates a strong trending stock better than new 52-week highs.
If you didn't already know this, there is an easy way to find stocks that are making 52-highs using MarketClub's Smart Scan Technology. You can find stocks in US, Canadian, and Australian markets and have the option of filtering and looking for just certain stocks that meet your criteria.
For my purposes today, I looked at stocks that traded at $20 a share or higher, had a daily trading volume of 2 million shares or higher, and I just scanned US exchanges.
When Jeff Bezos founded Amazon.com, Inc. (NASDAQ:AMZN) back on July 5, 1994 to sell books online, he had a much bigger goal in mind that no one else could see.
Mr. Bezos named his fledgling e-commerce company Amazon after the river and for good reason.
The Amazon River is the largest river in the world and it dwarfs the water output of the next seven largest rivers combined! That was Jeff Bezos's ambition... to dwarf every other company in the world and so far he is succeeding.
I imagine that Sam Walton, the genius who created Walmart, was an inspirational role model for Mr. Bezos. Yesterday, Amazon surpassed Walmart in sales - no small feat given the fact that Walmart has been around since Sam Walton founded this company in 1962, over half a century ago! Like Sam Walton, Jeff Bezos took a similar approach to retailing - to make products readily available at better prices than anybody else. Somewhere down the line, I would not be surprised to see Amazon open up brick and mortar stores. Continue reading "Amazon Knows Exactly What It's Doing"→
While most economists and governments are focusing on the looming disaster known as Greece, the markets have been going their merry way and yesterday was no exception. Both the S&P 500 and the NASDAQ flashed important buy signals and appear to want to move higher.
What was particularly impressive yesterday was the fact that the NASDAQ made a new high with the move. Should the NASDAQ close above 5,092.04, that would represent a new weekly high close for this index. The S&P 500 must close over 2,126.06 to record a new high weekly closing record price. With the current mood of the market right now, I expect this to happen unless there is some extraordinary news that comes out that nobody can foresee at this moment.
This will be a great weekend to take advantage of the "52-week highs on a Friday rules". New highs are outnumbering new lows by 3 to 1, indicating that the investors are still very confident about equity prices.
In today's video, I'm going to be analyzing 10 stocks that look particularly interesting. Six of these stocks are in strong uptrends, while the remaining four are in various levels of transition.
Today's jobs report seems to be lending a positive short term feel in the stock market. We are at the end of the week, and I see lots of opportunities for trading the 52-week high on a Friday rules.
All you have to do is visit Smart Scan and choose 52 Week Highs, filter the results and bingo, you will have a list of target stocks to trade over the weekend.
This technique has been around for decades. I first learned the rules of this weekend approach from a trading friend of mine named Bill when I was trading in the pits in Chicago in the 80s. When Bill first told me about this technique I was skeptical. It was only after I followed these rules on paper for a while that I became a true believer. Believe me, a lot of money has been made using this technique. I made this video is a couple of years ago and nothing has changed in this trading technique, which goes to prove just how powerful this little weekend trading trick is.
Let's start looking at those 10 interesting stocks, some of which will lend themselves to the 52-week high on Friday rules.
Have a great weekend everyone!
Every success with MarketClub, Adam Hewison