We're coming to the end of a rather dismal trading week as far as many traders are concerned, so let’s take a look at a positive way to end the week.
As this is Friday, I want to look for markets that are making new 52-week highs, particularly when they're going against the general grain of the market.
Within MarketClub, under the SmartScan tab, I'm going to use the link for 52-week highs. I'm also going to be filtering the results by "Equities," "last price less than $50" and "volume greater than 2 million shares traded a day." I'm also only going to search on US exchanges.
With the filtering completed, I came up with a list of about 16 stocks that meet my criteria. From your own scan of the stocks that meet your criteria, you could choose what you would like to trade, or you could trade all of them. Your next step is to scan 15 minutes before the close looking for stocks that are trading close to their highs for the day. You only want to trade those stocks that are closing strong for the day and the week.
If a stock is making new highs on Friday, it potentially means that something is going on behind the scenes that the general public is not aware of. It could be merger talks, a new product announcement or simply news that comes up that's viewed as positive for that particular stock or sector. Once you pick out the stock and buy it, you want to take profits on the opening on Tuesday. You're looking for the market to continue its strong upward momentum on Monday and early on Tuesday when the stock opens. Continue reading "Good Way To End The Trading Week"
