Good Way To End The Trading Week

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"

"52-week Friday rule" success

One of the trading strategies that Adam talks about the most is the "52-week Friday rule.” In case you missed Adam talking about this powerful strategy, you can re-visit the video by clicking here. Today we received an email from MarketClub member Glen C. who shared with us how this rule paid off for him:

"I am still very new to trading and I decided Friday 10 Sep to check out the High 52 Week Friday rule. When I did the smart scan RMCP jumped at me, and I studied the chart and saw a spike starting at 2:46 @ .98 and closing at 4:00 @ 1.27. I was curious as to the reason for the spike and did news research that showed a very large Federal contract had been awarded RMCP for medical supplies and software. Figuring that this was late breaking news, and that the tide would continue on Monday I purchased 1000 shares @ 1.29. The kickoff this Monday morning was @1.30 and I  watched it go all the way to 1.69 and fluctuate during the day. Figuring that the 1.69 was a decent profit, I set my stop there and sure enough it was met at 2:42 when it went to the day's high of 1.71. My profit for this one trade was over $380. So my recommendation is that if you see a spike on a 52 Week High on Friday, and you can determine the reason, you may be surfing the wave on Monday. Thank you Market Club for such great tools as smart scan and the High 52 Week Friday Rule."

Every success,
The MarketClub Team