Some New 52 week high / low rules:

To day computers allow investors to scan stocks in order to produce a basket of candidates for purchase or sale. See can scan for fundamentals like ROE, revenue growth and other stiff like dividend growth. We can also scan for technical conditions such as moving average crossovers, price and volume changes and other stuff like P&F breakouts and divergence.

On the technical side one big overlooked tool is to scan the daily new 52-week high / low list. We also don’t need a computer because the business dailies do the work for us.

Technically there are a few rules that apply to the new 52-week high / low list.

The first new 52-week high will not be the last. So always seek out stocks and ETFs that have made their first appearance on the new 52-week high list such as the BMO Junior Oil Index ETF (ZJO). Another example was ATS Automation Tooling Systems Inc (ATA) today posting another new 52-week high of $13.49 on Sept 9, 2013 the eleventh in a series that began on February 8, 2013 at $10.51.

The first new 52-week low will not be the last. Never hold these, I note DirectCash Payments Inc. (DCI) posted a new 52-week low of $18.63 on Sept 9, 2013 the fourth in a series that began on August 9, 2013 at $21.29.

Always look for a theme in the new 52 week high /low list.

Energy seems to be one theme with BMO Junior Oil Index ETF (ZJO), Calfrac Well Services Ltd. (CFW), Suncor Energy Inc. (SU), Trinidad Drilling Ltd. (TDG) along with several other energy related stocks recently on the new 52-week high list.