How To Make The Most of this Santa Rally

Are we having a Santa Claus Rally right now? Sure feels like it.

Here’s how to get the most out of it: Find stocks making a new 52 week high.

I know, that’s the opposite of what everone else tells you: “Buy low, sell high.”

But here’s the problem I have with that: What’s low?

How do you know you’re buying “low enough” or that you’re not catching a falling knife?

When you use the “buy high, sell higher” technique, you know what’s “high” if you find a stock that just hit a new 52 week high.

That’s the single best place to look when you’re looking for a stock to trade.

But that can’t be your ONLY rule. Because every day there’s something like 300 new stocks that meet that criteria.

So for me, I add the following rules to help me filter out the junk:

  • it must trade on a major exchange (no penny stocks, no foreign stocks)
  • it must trade more than 500,000 shares average daily volume
  • it must be at least $25/share (I didn’t mention this in the video, but it’s one of my rules)
  • it must have tradeable options
  • and probably the most important thing: it should have a good, long bullish trend (4-6 months or more) – we don’t want any stocks that suddenly spiked up to a 52 week high, because they can just as easily crash down

Once I find a stock that meets that criteria, I like to trade them in a 2-10 day timeframe.

And in those 2-10 days, I like to see if I can pick up $2 to $10.

In my opinion, when you trade this way, it gives you an unfair advantage.

The year is quickly coming to an end, but we’re still got a few good trading days left.

So go find some stocks making new 52 week highs and see what you can make out of them.

Trade well,

Jack Carter

P.S. By the way, I just recorded a special video lesson today showing you the tool I use to spot stocks making new 52 week highs. Tune in here to watch it now!

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