Home > Lessons from the trading floor > The beginnings of 52week Highs…

The beginnings of 52week Highs…

September 21, 2009 Leave a comment Go to comments

When stocks start making 52week highs, investors start to take a closer look; if for no other reason that stock screeners start to flash green on their screen. So that is what I’ve been doing every day, trying to get a feel for the underlying strength in the market by noticing what stocks are making 52week highs consistently and what stocks are failing to do so. For now I still see some of the big name stocks making highs almost everyday, stocks like GOOG AAPL GS all have made 52week highs in the last week.

From the list of stocks I am following these are making 52week highs:

Dow Jones Index: MMM

Semiconductors: SMH NVLS KLAC AMD MU

Retailers: XRT ARO GPS XRT ODP

NASDAQ: GOOG AAPL EBAY SBUX RIMM PALM

Commodities: GLD SLV

Financials: GS

What is worth noting from this small list is that Nasdaq and Retail sector are the two sectors with the best order flow to the buy side. Stock in the Dow and the financial sector are still lagging as only MMM (in the Dow) and GS (Financial) have made a new high in this last market uptrend. JPM is closes to test those highs in the financials, $50 would be a new high (just as a reminder where others are: C would have to trade to $23.30, WFC $40, and AIG would have to trade to $162, split adjusted, to get back to last September’s levels).

Another stock that caught my attention was F; it made its 52week high in the middle of the cash for clunker months, and has not been able to make a new one since. On the attempts but failing category MS is right up there, trying to take out the $32 levels three times in the last 3months, and as of yet has not been able to trade and stay above that level.

Keep a log on the stock you follow the most and get familiar with the internal strength they are showing. A 52week high is one good indicator you can follow, and remember that higher highs, higher lows is what creates a uptrend trend, so respect that.

Keeping track of markets internals are critical in developing a clear picture of the overwhelming order flow of the market.

www.keystonetradinggroup.com

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  1. September 21, 2009 at 5:05 pm

    Very good insight after the sharp sell off last Fall. I will be sure to take notice of the names which fail to reach their old highs.

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