Magic Of 52

H

Hook Shot

Senior member
Messages
2,110
Likes
51
Probably just luck but Magic of 52 has given me 2 decent trades this week and a 3rd which I missed due to system malfunction - So I'm gonna give this 52week thing a proper try.

Just in case you didn't catch earlier post 52w highs are potential shorts/52w Lows potential longs.

So ....... pop in from time to time if you're ever short of trade ideas or just curious.

NB. UK Miners - many hit 52w highs(All time Highs) again today....

Two winners so far short McD (Wed). and Long JNJ (Thurs - today)
Missed - Short CAT........Thursday

Teraaaa for now
HS
 
Quick one - Dax index has gone onto my radar making 52w high today. More importantly it flew to this level which means it may be a bit "stretched" and prone to end of week profit taking tomorrow. Could be wrong but juicey nonetheless.........No predictions just watching and waiting.

Happy Trading
 
Lets get right down to it......as you probably know the CAC/Ftse/Dax all making new highs today and that's fantastic for those who got long early but even better for the Lazy Bears.... Your prize is coming soon.

High Flyers
Difficult one this cos almost everything is high ........and I guess UK miners arre higher cos os the Oz rally last night haven't checked. so sorry can't add much value here - the whole worlds gone mad with stocks.

Low Rangers
This is a bit more interesting... As some of you may have noticed big dogs like GE, Intel and JNJ have made recent 52w lows - Last night intel made small up bar, with GE/JNJ looking really sick - they practically fell off a cliff into their lows.

Moreover there's some new stuff - the slap taken by fast money fave Juniper in states makes the list and Baidu - chinese google is still sliding. Baidu came to the market to much acclaim but is now off by 66% from it's highs. I am sure some silly rumour - will eventually take it off it's lows if this market froth continues - but MY focus is on the boring old mega caps mentioned earlier and Juniper.

It's possible that we're in a supercharged blast to outer space and in this environment beaten down techs like Intel and Juniper will come back into favour....somehow. So don't chase the darlings there's a couple of winners here just waiting for a bit of lovin'

Go Easy
The Hookster
 
Just made first Short trade in Dax - just a small one to start and in June for extra safety. Price 5660.
I expect to get a return within a week or so But time is on my side.
HS
 
Rules ? Difficult one because this thing is not meant to be scientific/mechanical. It's a bit of fun based around general observation. I'm really looking for the multi day swing - if you really want the truth but because these items are at their extremes short term smash an grab opps will present themselves ...

If market is generally very bullish then low rangers - are more likely to get a lift - equally on very weak general market high flyers in general may be less likely to go up. It's just a probability not a certainty.
On Wed we had a generally weak day in states - I already knew McD was at it's high from Tuesday so I knew it was potentially vulnerable.... it started falling with the market so - I won in the short term. Again JNJ yesterday was vulnerable to positive general sentiment - which we got - and I saw it rising so I played it - and won again short term. But as mentioned earlier these are nice but they are just passing time until the real upwaves or downwaves begin.

Example: Intel when it does find love will rise by several dollars - and that's worth waiting for. It'll probably come on high vol spike up - which should be the catalyst for a sustained move.

So I hope this helps - not rules but general principles. I would add that I try and stick with big names taht institutions have to hold or might want to buy - because this turn that I'm waiting for will likely be driven by them.

Thanks for interest
Hookster
 
Thanks Hookster, good luck with it. I've begun screening FTSE350 for 2 month breakout/down type entries for short term momentum trades using CFDs. I'll take a closer look at 'magic 52' too.

Cheers
 
Chow ,350's I used to do that ............. plenty work! But it'll work just as well as the 52 method "should".
Keep me posted on how you're gettng on.
All the Best
Hookster
 
DOGS OF THE FTSE........ Beaten down blue chip stocks are pretty hard to find in UK
BskyB made 52L wed and rally failing today

BT low monday but not 52L - so bit naughty to mention it - bouncing nicely though..
(I own BT shares- in interests of full disclosure)
Vodafone made 52L Monday and easing up

All the best
 
Only last Monday HMV was member of the 52 Low Rangers - and now it's found love! I didn't mention it because I mainly do blue chips. As mentioned before volume was the key but it came late friday.. .... unless you already had this 52 on your list.

All the best

Hook Shot
 
Two more uk retailers to watch for JJB and Clinton Cards - both bounced off the 52 floor again with volume - 2wks ago at 161 and 61 respectively.... worth watching.

HMV, will it get taken out by Permira ? - no idea but it new lows now look off the radar screen......If the pop dies (200 looks hurdle) it will just provide a cheaper entry next time around......whenever that is.

Update:GE - looks like somethng big will happen .... don't know what - perhaps broker comment - we'll see.
www.candlestickchart.com/cgi/chart.cgi?symbol=GE

CAT - is vulnerable to down move ......... I'm watcing like a hawk after new 52H friday.
http://www.candlestickchart.com


Hook Shot
Ps. Dax/Ftse/Nikkei new 52H
 
Last edited:
Another day another FoMC meeting - more dreary trading expected. Those of you who watched NY last night know what I'm talking about. However, indices and stocks keep going up so a big trade is close at hand. Signs of slight weakness as Nikkei fails to make new highs but not yet weak, Euro indices reverse their new highs and mining starts to wobble a bit. Desite all this some stocks still made new highs, Next, Shell and Bp are just a sample.

In the down and out section Cable & Wireless new low.

Bskyb is bouncing off Monday's 52L , Vodafone and BT are again moving towards their recent lows.

Retail Stocks
A bit of calm has returned but I think there's more in pipeline. The buyers mainly private equity have too much money and have to put it to work. Shops are generally cash generative and many are on the floor price wise. This is why I started to accumulate Woolworth this morning. Previous picks are still potentials but Wlw has been "hit on" before.

STATESIDE
Cat - well when it rallied early and failed to make new highs - that was red rag and duly scalped for good profit - making up for the one that got away last week.
Jnpr - rallied but to quick for me. However, if this really is a new wave it shouldn't see $17 again for a while. The jury is still out for me.
Jnj -trying to base at $58 - I'm still waiting for the move to $60/61.
GE - still no sign of the cavalry.... a bit worrying for general market.

Finally, tight range in US last night looks very likely to break and should be good low risk play. It's hard not to be bearish as new highs swamp new lows, 3yr bull move, Vix remains contained plus a stack of risks you already know about - but be patient Judgement Day has not been cancelled just delayed. I'm using market lulls to dust off my bear strategy and remember how it felt to be short Barclays, Royal Bank and Glaxo at pretty close to all time highs ..............in Summer of 2001.

Happy Trading
Hook Shot
 
Too tired yesterday, worked night shift to catch Nikkei - just about worth it. You know what ? It's a great feeling to go into European sesh with a little "bung" in your pocket before you even start. Good start to the month

Anyway, again we see early market weakness in Europe ... but of late this has been reversing to make new highs. This time it might be different, time will tell. I, like many out there, am looking for failed intraday rally in Dax to add take proper action (already had nice trade on early slide - feeling Gooood).

52 Club
Dogs
Well what about Bskyb eh ?....... former member goes on to better things - for time being at least!
Telcos still mired but they generate cash so somebody must want them - keen eye on cable and wireless. Before I go, one of my local tech companies Isoft fell spectacularly from grace in last few days - bad warning but they'll recover or be swallowed up so... think on......!

Flying High
Here's a sample of shares making new 52highs TODAY according to my data source; Gus, Wolseley, Northern Rock, Anglo Am., Antofagasta, Man Group and Severn Trent.

No US notes today - only to say that Gold and gold stocks getting extended imho - so I'm looking at Newmont (Nem) 52High on Tues 31st ..... this is more for the patient but I expect some kind of top within a week - if we haven't had it already.

Happy Trading - and here's hoping this softness turns into a waterfall!!!!!

Hook Shot
 
LOOK LIKE THE CAVALRY FINALLY IS ARRIVING AT GE !!!!!!!!!!!!!!

JUST WHEN I HAD FORGOTTEN IT................

Check out the 5d day chart - the weblink is giving me problems. Sorry

HS

www.candlestickchart.com/cgi/chart.cgi?symbol=GE - hopefully this works
not as clear as intraday chart but for swing players this is positive development.
Sorry about spelling and grammar - it seems to be getting worse with age.....!!
 
Last edited:
Mega volume in Woolworth (Wlw) means something brewing - I'd like to think it was a bid - but my guts tell me Big Warning is likely. I'm getting ready to buy more if the price collapses tomorrow.

Hook Shot
 
Just a brief update as now workload has picked up at proper job.

Last Thursday (previous 3 posts) I said I was looking for Gold or gold stock top (just off 52H) within a week and that Woolworths were vulnerable to bid. Well Tues saw biggest one day fall in Gold for 13 years -Tick One. Secondly, my bullish call on Woolworths has been vindicated now up more or less 20% since mentioned on 31 Jan. Admittedly, I feared the worst when volume started to pick up in the stock but it turns out this was buying as BAUGUR the famed value investor reported stake buying today. We can expect further rises from here on in.Tick Two.

I continue to focus on the Magic of 52 but acknowledge that set ups can take some time to develop. Hopefully, it is becoming clear that the magic of 52 approach might have some merit, although I admit further refinement is needed. Postings will now be on weekends - although from time to time there may be the odd intra week update.

Happy Trading
Hook Shot
 
Dad are we there yet ??

Just dusting off the cobwebs on this old chestnut........

We're gunning for shorts on Exxon and Altria as both have had stellar moves to recent ALL TIME HIGHS. They are unlikely to be taken over.......... so shorting will be that bit safer ?

Exxon - gapped down today after Highs on Friday is this the beginning or just a headfake ?

Altria made new high today but seemed to close poorly

Coke made new high today - but not as important as ALL TIME HIGHS of the previous two.

I hope the links work ........

Hookster

Exxon
http://finance.yahoo.com/q/bc?s=XOM&t=5d&l=on&z=m&q=b&c=

Only Exxon for now the other two would not cooperate Sorry

http://finance.yahoo.com/q/bc?s=MO&t=5d&l=on&z=m&q=b&c=

http://finance.yahoo.com/q/bc?s=KO&t=5d&l=on&z=m&q=b&c=

second try.........
 
Last edited:
Hi yall.........well we certainly got a nice slide in EXXON(XOM) after that gap down monday - lovely move $70 down to sub $68 yesterday...... secondly Altria gave us max of 100pts moving $84 to $83 before a violent rally late day. Some bloke reckons Altria could be worth $95 so I'm more cautious than I am on EXXON. Is Coke KO setting up for a pbk ??? Lets see today as it made new 52H but reversed hard!

UK Watch
Too many to mention but ..........Diageo gapped down after hitting ALL TIME HIGHS Wed. I seem to remember this happened to Exxon on Monday so will we get a nice slide starting now ??

Chart to follow ............
 
You must log in or register to reply here.

Similar threads

B
belflan's US stock pair trades
3 4 5
Replies
81
Views
3K
belflan
B
L
Buying and selling h/l of asian session backtesting results
Replies
5
Views
2K
forker
F
R
  • Article
Getting Started The Magic of Compounding
Replies
4
Views
5K
chump
C
S
(LSE: SRX) Sierra Rutile, the African hidden gem at London Stock Exchange
Replies
11
Views
4K
SamHamrick
S
M
Huge collection of Trading & Investing videos, DVDs 52 Videos
Replies
4
Views
12K
minitrade
M
Top