Hello, Adam Hewison here for MarketClub with your 1 p.m. market update for Friday the 20th of May.
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.
All the best,
President of INO.com
Co-founder of MarketClub