Hello, Adam Hewison here for MarketClub with your 1 p.m. market update for Friday the 20th of May.
Watch what's happening right now ...
As of noon today there were only two stocks we are looking at in regards to the 52-week high rule. The first was on the NYSE and it is Sprint Nextel Symbol S. The next stock was on the NASDAQ and that is Amarin Symbol AMRN. In order to qualify for the 52 week rule the stocks have to close at or close to their highs for the day. If the market closes around its midpoint it does not qualify.
Now for the 52 week short rule; we have five stocks in this category as of noon (ET) today. This of course can change before the closing bell at four o’clock (ET). Here are the stocks we’re looking at: SVNT,NBG,OMX, RDN and PMI.
These are all below $10 and should provide a nice % gain if they follow through on Monday.
Be sure to watch all of these markets at or near the close.
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!
- 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.
- Exit the long position on the opening of the following Tuesday.
- 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.
Now it's business as usual:
SP500: -55. Long term uptrend remains intact. Trading Range Neutral - Resistance at 1360
Silver: Score +55. possible bullish divergence on the Williams %R indicator.Major resistance at $39.50.Support at $32.00.
Gold: Score +80. Longer term trend remains positive. Support at $1.475 and$1,462.50. Resistance at $1,526.Buy signal today at $1,499.83
Crude Oil: +70 Trading range. Long term indicator remains positive. Resistance at 100.80 basis June.Choppy market.
The Dollar Index: Score +55. In a trading range with the longer term outlook remaining negative. Minor resistance at 76.00 and major resistance remains at 77.50. Minor support at 74.00
The Thomson Reuters/Jefferies CRB Commodity Index: Score -55. Near-term resistance at 348.50. Support at 333.50. Bullish divergence on the Williams %R indicator.
Get a more in depth presentation HERE!
All the best,
President of INO.com
Co-founder of MarketClub
15 thoughts on “Your 1PM Update and the "52-week new highs on Friday rule"”
My first time using the 52 week high on Friday rule netted $700 on a $10k trade on Sprint (NYSE_S). Definitely paid for my continued subscription to Market Club!
I'd like to see this as a regular weekly posting, hopefully just following or included in the 1pm update, in order to give traders time to take advantage of the trades.
Thanks Jennifer. If I understand Adam what is saying the "52 week High rule" sounds interesting. What was the title of his blog telling us about it please? I'd like to read it.
P.S. I love your work!!!
The link below is Adam's original posting on the 52 Week High Rule. Enjoy!
For some balance. Mine was received ay 2:57 ET. Nearly two hours later but still before the market closed.
What IS the answer to Jefferson's and Sundgren's question? Does it refer to the particular stock or the market in general? Thank you
According to my records I received this at 1.43 AM on Saturday 21st.
My weekend update arrived at 2.15 am on Sunday.
I'm not saying you are to blame, just wondering where the message has been. I don't have similar problems with anyone else.
For some reason we have been having an issue with the blog update alerts not going out in a timely fashion. We are working on getting this resolved as we speak. I would suggest that in the meantime just checking in on the actual blog until we get the problem resolved. You can also feel free to email me at [email protected] if you need to get in touch directly.
Thank you for your patience!
what good does a 52 week rule do if the suggestions arrive after fridays close?????????????
Sorry you didn't read the post in time. It went up at 1:00pm ET on Friday (3 hours prior to the markets close).
Welcome Back Adam! We're all glad you had a nice and well-earned vacation.
Three questions: How to confirm that stocks in question have made their new 52 week high (or low) at 4pm when the market closes and at the same time buy or sell short these same stocks? There is just no time to do both. I know there should be an easyand logical answer to this question but in my quest for precise directions, I am somewhat lost.
2nd Question: What made you select S and AMRN from among the others stocks that also made their new 52 week high?
3rd and last Question: Why would one sell short stocks that have prices of less than $5.00 - such as NBG @$1.33; PMI @$1.40; RDN @$4.40?
Thank you for your attention to my inquiries.
I like to look at the Smart Scan tool about an hour before the close on Friday. That gives you plenty of time to make a decision on what to buy and sell.
2nd question. Both and S and AMRN did not make the cut as the closed mid range.
As for the shorts percentage wise a small move represents a good percentage return. I prefer to short stocks that are much higher in price. Try $20 to $40 range.
All the best,
The article says, ".....the 'stocks' have to close.....", etc.
Then is says, ".....if the 'market' closes.....", etc.
Is it fair to assume that when it says 'market', it is still referring to 'stocks'?
It may be a dumb question, but I would like to be very sure that what I would be doing was exactly what the rule means.
Thanks so much for the information. Excellent lesson.
i wonder if the words "stock" and "market" are used correctly here. for example, to buy a stock using the rule, it must close near highs of the day on that Friday and make a new 52-wk high. What does that have to do with the market closing around its midpoint??? Does the general stock market indices also have to close at or near the highs of the day? and would this work for a specialized stock such as a commodity, which may not be correlated to the general stock market?
Thanks for the update, Marketclub has done a great job for in getting me in and out in time of the Silver market just by following the triangles.
What are your Williams%R and Donchian channel settings?
Keep up the good work!
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