For those of you who followed the 52 week, weekend rule this past weekend, you should have taken profits on your position this morning in gold. Your profits should range from $8-$12 depending on where you purchased gold on Friday towards the close. Longer-term we remain positive on gold.
This just in from mario dimascio >> Hi Adam, I just followed your advice and picked up an extra 10points on Gold………THANK YOU
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Adam,
I have only recently joined the group but noted that a number of stocks and ETF such as FCX, GLD hit 52 week high on Friday 10/8. notwithstanding the fact it is a quiet market today (Columbus Day), a number of these stocks / indices turn negative on the day. I squared all my positions to keep a level head and tried to learn something. What would you say should be my take away?
Thanks.
Pete
Peter,
Thanks for your feedback.
Sometimes holidays (today's Columbus Day) creates light volume. Tuesday should be a better indicator of the market.
All the best,
Adam
Thank you .can you send tips for indian market(sensex/nifty)?.
Kalluri,
Thank you for your feedback.
At this time we do not cover the Indian markets but we might in the future.
Every success,
Adam
Adam: "the latitude one give oneself in trading is to be flexible"
- what about discipline?
Adam: "with a strong bull market in gold you may have wanted to hold on till Tuesday"
- with a strong bull market, I'd prefer to buy low rather than high, i.e buy at every pullback.
now Rule #3 has "sharply" added. But with 52 week high on Fri, the chance of a sharply low on Mon is really remote.
Adam, I'm not trying to find bones in the egg. They are just my thoughts. Any comments?
Peter,
Thanks for your feedback.
As you pointed out, discipline is key to trading success. I totally agree, and it is one of the key tenets that we stress to all traders here at MarketClub.
I adjusted the # 3 rule to now read "sharply" as this better reflects current market conditions. Remember that this original rule is over 30 years old before we had electronic and 24 hour trading.
Like everything to do with the markets, we must as traders adjust our thinking to reflect market conditions. However, two things that do not change are money management and discipline.
All the best,
Adam
Hi Adam,
Is there a way to find out every Friday, what equities or commodities or indexes or futures, etc., are at their 52 week highs and candidates for the "Weekend" buy? Does the Market Club Scanning Tool System do that?
Is there maybe a way you could send a weekly alert as to what stocks qualify?
Also, is there a trick for us novices to buying things like sugar or futures, you know, things other than straight equities for the 52 week thing.
Is the idea to identify those items that are close to or at their 52 week high and then buy them? Or is it better to wait until the very end of the day to make sure they didn't crash or fall well below the high they reached?
When you say that the 52 week high works for some stocks and not others, does that mean NOT to use the system on stocks, in your opinion? If not, what did you mean or how should one choose which stocks to play?
Thanks.
Donn,
Thank you for your feedback.
Using MarketClub's Smart Scan tool you can easily find markets that are making 52 week highs. I think the 52 week rule works better with futures than stocks. However, you can find stocks that this works well on.
Hope this helps.
All the best,
Adam
I tested the rule this weekend trading options on 5 stocks other then gold at 52 week highs and liquid.
4 of 5 were successful trades on exiting long position on Tuesday morning.
Final gain was 18%
Not bad for a days worth of work. even for a rough Monday
thanks for all the amazing stuff on this site!!
I found the system, Thanks
What is the 52 week system?
Seer,
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.
All the best,
Adam
Ok, thanks for your response Adam. I actually think that this market opened lower on Monday by design. It was simply a "shakeout" by the "big boys" and institutional traders in the know. That's the nature of markets these days. It seems to me that it's getting more and more difficult for the average person to make money in the markets. What do you think?
Pablo,
There are still lots of opportunities to make money in the markets. Remember, this is not a sprint to make money, and it's more of a marathon that you should look at on a week to week, month-to-month basis. Looking at the market every second of the day is not as productive as most people think is or should be.
All the best,
Adam
Hi,
I did this with SLV, because I wanted to try it, and it worked just fine. I work on Fridays, and I did want to try this, but I've had trouble finding time to find an entry.
Next time I might be a little more agressive, and with an etf, I would have done a little better waiting to take profits for the market to warm up.
Options would work even better, probably a good way to trade currency options.
Thank you, it wasn't stressless, but it came pretty close.
jenne
So if the market would have crashed and burned today I guess you would have been out for only a 1 dollar loss on Monday and the title of this post would have been...
"You only lost a few bucks on the 52 weekend rule as long as you followed the rules"
These rules seem to work better in retrospect.
Since I start following your weekly signal, especially on GLD and SLV, I'm only making money. I mainly trade on Options, and your weekly signal works great for me. Thanks for your fantastic service 🙂
I'm confused. Rule 3 of the 52 week high trading system says that if the market opens lower on monday sell. It did open lower for gold on Monday. How can someone make money from this system today if they sold yesterday?
Joe,
Thanks for your feedback.
You're not the only one to notice this, however, I do want to say that when we publish the rules they would based on Bill's rules 30 years ago when they did not have 24 hour trading. Having said that you would've exited the market on Monday based on these exact rules.
I think the latitude one give oneself in trading is to be flexible and with a strong bull market in gold you may have wanted to hold on till Tuesday. We can see how powerful a day Tuesday has been so far. Whether that continues remains to be seen. I have just posted a new video that we did several weeks ago that I think you'll find interesting on gold. Here is the link http://broadcast.ino.com/education/gold1005/
All the best,
Adam
I tried this rule on equities a week ago and the week before that...it worked!!!:)
Hello Adam,
I'm a bit confused here - according to the "52 Week High on Friday Trading Rules," you are supposed to exit if the market opens lower on Monday. So, say someone is following the ETF for spot gold, GLD, it closed last Friday @ $128.91 and then opened on Monday @ $128.49 which would've been a signal to exit the market. So, how could've anybody followed the rules and then taken profits today? If you followed the rules, you would have exited yesterday morning (Monday morning). However, I'm not sure if the same thing that happened with GLD also happened with gold futures, but I'm assuming that it did b/c GLD pretty much follows spot gold in the futures market. Please let me know what I'm missing here. Thanks Adam!
Pablo,
Thanks for your feedback.
You're not the only one to notice this, however, I do want to say that when we publish the rules they would based on Bill's rules 30 years ago when they did not have 24 hour trading. Having said that you would've exited the market on Monday based on these exact rules.
I think the latitude one give oneself in trading is to be flexible and with a strong bull market in gold you may have wanted to hold on till Tuesday. We can see how powerful a day Tuesday has been so far. Whether that continues remains to be seen. I have just posted a new video that we did several weeks ago that I think you'll find interesting on gold. Here is the link http://broadcast.ino.com/education/gold1005/
All the best,
Adam
That would have been intelligent.
Adam, was rule #3 to exit trade on Monday immediately, if gold opened lower? Was gold lower on Monday morning than at the close on Friday? If so, should we have exited the trade on Monday morning?
Thanks,
Mike
Mike,
Thanks for your feedback.
You're not the only one to notice this, however, I do want to say that when we publish the rules they would based on Bill's rules 30 years ago when they did not have 24 hour trading. Having said that you would've exited the market on Monday based on these exact rules.
I think the latitude one give oneself in trading is to be flexible and with a strong bull market in gold you may have wanted to hold on till Tuesday. We can see how powerful a day Tuesday has been so far. Whether that continues remains to be seen. I have just posted a new video that we did several weeks ago that I think you'll find interesting on gold. Here is the link http://broadcast.ino.com/education/gold1005/
All the best,
Adam
Mike,
Thanks for your feedback.
You're not the only one to notice this, however, I do want to say that when we publish the rules they would based on Bill's rules 30 years ago when they did not have 24 hour trading. Having said that you would've exited the market on Monday based on these exact rules.
I think the latitude one give oneself in trading is to be flexible and with a strong bull market in gold you may have wanted to hold on till Tuesday. We can see how powerful a day Tuesday has been so far. Whether that continues remains to be seen. I have just posted a new video that we did several weeks ago that I think you'll find interesting on gold. Here is the link http://broadcast.ino.com/education/gold1005/
All the best,
Adam
It's not making money until you take profits....good call Adam.
does the 52 week high play also apply/work with individual stock picks???
Richard,
It does work with some stocks and not others.
All the best,
Adam
Nov 3, bernanke will make a decision on QE2. It looks as tho more money printing, 500 billion, what is not known is how quickly he will print. Which means the stock market will be stable. This will either slow the rise of gold, altho, more printing will also mean less confidence in the dollar, which can mean the rise of gold. By Jan. 2011, the dismal christmas will be the tell all, gold at 2000 by Feb 2011. And this does not even count the billionaire investors trying to expose the london exhange, the fact that they are selling 100 times more gold than they have (take physical possession for god sake),and GATA is getting closer every day exposing the pricing manipulation.
There is NO way out of this mess, buy metals, buy now. Physical possession only.
QE2 will not work, and it will be over.
Except your rule #3 says if it opens lower on Monday then sell immediately.
It looks like to me that it opened lower on monday or am I reading it wrong?
Charles,
Thanks for your feedback.
You're not the only one to notice this, however, I do want to say that when we publish the rules they would based on Bill's rules 30 years ago when they did not have 24 hour trading. Having said that you would've exited the market on Monday based on these exact rules.
I think the latitude one give oneself in trading is to be flexible and with a strong bull market in gold you may have wanted to hold on till Tuesday. We can see how powerful a day Tuesday has been so far. Whether that continues remains to be seen. I have just posted a new video that we did several weeks ago that I think you'll find interesting on gold. Here is the link http://broadcast.ino.com/education/gold1005/
All the best,
Adam
Adam, On the 52 week weekend rule, was rule #3 If the market opened lower on Monday, to exit immediately? Did
gold open lower on Monday?
Thanks,
Mike
Mike,
Same answer for you.
Thanks for your feedback.
You're not the only one to notice this, however, I do want to say that when we publish the rules they would based on Bill's rules 30 years ago when they did not have 24 hour trading. Having said that you would've exited the market on Monday based on these exact rules.
I think the latitude one give oneself in trading is to be flexible and with a strong bull market in gold you may have wanted to hold on till Tuesday. We can see how powerful a day Tuesday has been so far. Whether that continues remains to be seen. I have just posted a new video that we did several weeks ago that I think you'll find interesting on gold. Here is the link http://broadcast.ino.com/education/gold1005/
All the best,
Adam
Gold gapped lower Monday morning. According to your rule you should have sold for a loss at that point.
TC,
Thanks for your feedback.
You're not the only one to notice this, however, I do want to say that when we publish the rules they would based on Bill's rules 30 years ago when they did not have 24 hour trading. Having said that you would've exited the market on Monday based on these exact rules.
I think the latitude one give oneself in trading is to be flexible and with a strong bull market in gold you may have wanted to hold on till Tuesday. We can see how powerful a day Tuesday has been so far. Whether that continues remains to be seen. I have just posted a new video that we did several weeks ago that I think you'll find interesting on gold. Here is the link http://broadcast.ino.com/education/gold1005/
All the best,
Adam
Rule # 3 had you liquidating on a lower opening on Monday. What gives?????
D2,
Thanks for your feedback.
You're not the only one to notice this, however, I do want to say that when we publish the rules they would based on Bill's rules 30 years ago when they did not have 24 hour trading. Having said that you would've exited the market on Monday based on these exact rules.
I think the latitude one give oneself in trading is to be flexible and with a strong bull market in gold you may have wanted to hold on till Tuesday. We can see how powerful a day Tuesday has been so far. Whether that continues remains to be seen. I have just posted a new video that we did several weeks ago that I think you'll find interesting on gold. Here is the link http://broadcast.ino.com/education/gold1005/
All the best,
Adam