We have blogged about this before, but this past weekend in gold the 52-week weekend rule worked perfectly.
You would've bought gold on Friday's close in basis spot gold at $1,393 and change. You would've exited this position today at $1,416 and change for a profit of around $23 an ounce.
If you would like to find out more about how you can use this rule in the future, not only on gold but in other markets as well, here's the link.
All the best,
Adam Hewison
President of INO.com
Co-founder of MarketClub
Just like any other 'rule', this also will work sometime and not work on some occasions. Such simple 'rule' based trading has to be back tested before you can put it to practice. You can always find some candidates which fit the rule very well.
I did buy Gold on Friday,and on my trading platform the Market closes at 2100 hr, so 5 minutes before the close I had good Idea where Gold was going to close for the week. So I Bought it at $1393 and sold it on Tuesday at $1407. I guess is good idea to wait few minutes before the close on the Friday and you should be home and dry.
I want to know where the market crash is they were calling for back at Dow 9000...
Serioso,
Markets and market preception can and does change. As traders we need to be flexible in our approach.
All the best,
Adam
Thank you Sir. I did not see that option, but looked and see it now. Let me see if I get this rite: I scan friday before noon or so est, I guess would do OK. I find a hi or lo, buy or sell - then follow thru as per the rules? Does that sound rite?
Thanks again.
Del,
Good luck.
One other tip, this rule works best with futures and forex.
Adam
Raise in CME Silver Margins Prompts After-Hours Sell-Off.
I asked before and see my comment was not posted. I was wondering if there is a way to set up an alert so if the "weekend rule" sets up a person could get on it?
Anyone know how to do this? Other than manually checking every chart you are interested in?
Del,
You can use smart scan and scan for new 52 week highs or lows.
52 WEEK RULES
Here are the three rules you need to trade "The 52-week new highs on Friday rule"
These are the exact rules that Bill used to make millions
Rule number 1: On a new 52-week high, when the market closes at or close to its high on a Friday, buy long and go home long for the weekend.
Rule number 2: Exit the long position on the opening the following Tuesday.
Rule number 3: If the market opens sharply lower on Monday, exit the position immediately.
There you have it. These are the only three rules you need to trade with "The 52-week new highs on a Friday rule" successfully.
"The 52-week new highs on a Friday rule" works extremely well in futures and in the Forex markets. This rule can be reversed for "The 52-week new lows on a Friday rule" if you are so inclined to trade the short side of the market. The same rules apply.
Thanks
Adam
John: For one, there was a large drop of speculative longs in the Comex COT report last week and increased in commercial shorts. So, it's sheer profit taking. Nothing goes straight up like this chart the last few weeks without profit taking. But I read on Sinclair's site a Texas Teacher's Pension Fund bought 6.4 million oz. of silver. So that's a big chunk of physical off the market pronto. And this is only the beginning when the 5% of current investment funds in gold rise to 10%, 20%.....$2,400 in no time.
JMHO
Great trade if you adhered to the rules(Sell tues at the open)if not you would have been toast.Discipline discipline.
This is a clear example where following the rules (sell tues at the open) allowed this to be a great trade.Held past the morning you would have been toast.Discipline discipline discipline.
How can this work in slv or gld for example. If I buy after the close I get hammered on the spread. So when do you buy it?
Ed
Ed,
here are the rules.
52 WEEK RULES
Here are the three rules you need to trade "The 52-week new highs on Friday rule"
These are the exact rules that Bill used to make millions
Rule number 1: On a new 52-week high, when the market closes at or close to its high on a Friday, buy long and go home long for the weekend.
Rule number 2: Exit the long position on the opening the following Tuesday.
Rule number 3: If the market opens sharply lower on Monday, exit the position immediately.
There you have it. These are the only three rules you need to trade with "The 52-week new highs on a Friday rule" successfully.
"The 52-week new highs on a Friday rule" works extremely well in futures and in the Forex markets. This rule can be reversed for "The 52-week new lows on a Friday rule" if you are so inclined to trade the short side of the market. The same rules apply.
Thanks,
Adam
Nice profit there. I wish I had played it the same way. I went out for a lte breakfast and a couple of hours later returned to see the huge fall in price. I had long positions in both xau and xagusd, most of my profit was gone. I will buy more so maybe this is a good thing.
I was wondering if there is a way to set up an alert when the 52 week rule presents itself? It would sure be handy.
It's worked very well for me, for various stocks of the last few weeks.
Would definitely be interested in the long-term track record, including win rate and average % profit per trade.
Today was a major bummer for me. I hold GDXJ and it hit a brick wall today. What are the reasons why? What caused Gold to fall today?
Huh? In your video explanation, you say that by this rule one should exit a position on Monday in the case of a negative opening. IAU and GLD opened down on Monday. By your rule, you should have exited with a loss.
David,
Here are the rules again.
52 WEEK RULES
Here are the three rules you need to trade "The 52-week new highs on Friday rule"
These are the exact rules that Bill used to make millions
Rule number 1: On a new 52-week high, when the market closes at or close to its high on a Friday, buy long and go home long for the weekend.
Rule number 2: Exit the long position on the opening the following Tuesday.
Rule number 3: If the market opens sharply lower on Monday, exit the position immediately.
There you have it. These are the only three rules you need to trade with "The 52-week new highs on a Friday rule" successfully.
"The 52-week new highs on a Friday rule" works extremely well in futures and in the Forex markets. This rule can be reversed for "The 52-week new lows on a Friday rule" if you are so inclined to trade the short side of the market. The same rules apply.
Thanks,
Adam
Well, for the savvy trader w/ the bucks, I'm sure there's money to be made. But today's action would whip the average trader so bad, it's not worth the $23. No raspberries intended. Jim Sinclair said it would near $1,429 before turning back for a correction; and it surely did.
it works only when it doesnt. DX is showing a strong bounce. Silver was nasty reversal today! On marck chart of 1980 to today, Silver demonstrates how badly it wanted to hit that trendline and it did and soldoff.
yes it worked this time for gold made some record days here in the past few days, but do you have a track record of the weekend trade?
gold and silver sold off, good now i can buy more , i hope it goes down more so i could buy it cheaper and keep holding. the bankers never made it so easy to buy gold and silver at a discount in comparison to paper money supply.
Does this rule only apply to gold or commodities - both the ftse and dow closed fri on 52 week highs yet opened lower on Monday ?
Ian,
Works best of individual markets. A market can open lower on Monday but not sharply lower.
Here are the rules again.
52 WEEK RULES
Here are the three rules you need to trade "The 52-week new highs on Friday rule"
These are the exact rules that Bill used to make millions
Rule number 1: On a new 52-week high, when the market closes at or close to its high on a Friday, buy long and go home long for the weekend.
Rule number 2: Exit the long position on the opening the following Tuesday.
Rule number 3: If the market opens sharply lower on Monday, exit the position immediately.
There you have it. These are the only three rules you need to trade with "The 52-week new highs on a Friday rule" successfully.
"The 52-week new highs on a Friday rule" works extremely well in futures and in the Forex markets. This rule can be reversed for "The 52-week new lows on a Friday rule" if you are so inclined to trade the short side of the market. The same rules apply.
Thanks
Adam