Hello MarketClub members everywhere. It's Friday; Labor Day weekend is on the horizon, so it is time to look back on the week. The biggest loser for the week is Crude Oil which is down from last Friday's close of $47.63 as of right now as October crude is trading around $44.39 down over $3 for the week.
Many of the other markets have seen changes in their intermediate weekly Trade Triangles and I will examine the ramifications of those moves in today's video.
Here is a quick look at the major markets and how things stand right now.
DOW (INDEX:DJI): Up for the week
S&P 500 (CME:SP500): Up for the week
NASDAQ (NASDAQ:COMP): Up for the week
Crude Oil (NYMEX:CL.V16.E): Down for the week (Biggest Loser)
Gold (FOREX:XAUUSDO): Up for the week
I will be analyzing each of the markets listed above and time permitting I will be looking at some stocks that are making 52 week highs.
The New 52-week high on Friday Rule: Here is a weekend trading alert, go to the Smart Scan tab then select "52wk High". Filtered out by choosing Ave Daily Volume, then choose greater than 2 million. After you have done that choose a price point that you like, for example, you may want to buy stocks that are $20 as opposed to $100. After you have done that, follow these rules.
Here are the three rules you need to trade "The 52-week new highs on Friday Rule":
Rule #1: On a new 52-week high, when the market closes at or near its high on a Friday, buy long and go home for the weekend.
Rule #2: Exit the long position on the opening the following Tuesday.
Rule #3: If the market opens lower on Monday, exit this position immediately.
There you have it. These are the only three rules that you need to trade "The 52-week new highs on Friday rule" successfully.
Money Management Alert: Please remember that markets can change quite dramatically especially in thinly traded summer markets. Always have areas in your mind that if the market penetrates those levels, you will exit your position. This is called discipline and money management and over the long term it will save you and make you money.
Have a safe and enjoyable Labor Day weekend everyone.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
Adam was right! I throw my arms in the air and surrender. After watching the market action this past week I am changing my tune and now see the DOW 20,000/S&P 2,350 by January/February 2017. This market is just manipulated to the core! Looks like Obama will be the first two-term president in U.S. history to have a stock market go 8 years without a year in the red. Unreal! You could put an asterisk for the year 2011 as the S&P ended flat, but otherwise every other year he was in office the S&P posted a gain.
The Bears should be ashamed of themselves for not taking the S&P below 2,157 and not breaking the upper channel. This was a make or break week and the Bears lost. After watching the lagging financials breakout it appears that the lagging DOW Transports are on the verge of a breakout from its downward trend...they may as well. At the time of year in which the volatility usually goes up watch the pathetic VIX drop to 10.