Posting Times

Posts will be between 8:30 PM to 10:00 PM PST
Mikey's Short Term Trading Rules

1) Make up a list of stocks, commodities or ETF's to trade. This list should be names that have good earnings and high relative strength.
2) Monitor this list and throw out the weaker names
3) Buy only stocks or ETF's that are intermediate and daily up (green) and the market is Daily and intermediate term up (green)
4) Buy pullbacks on these stocks to the 20 and 50 day averages
Usually you get 4 to 6 20 day pullback buys and 2 or 3 50 day pullback buys in an intermediate term trend
5) More agressive traders can buy the 7 day average in the first 3 to 8 weeks of the uptrend.
6) Buy pullbacks not runups. A buy should not be easy or exciting but difficult and somewhat scary. DO NOT CHASE
7) Place stop at 5% below the buy price. Do not remove
8) Sell 3 to 5 days after the stock price takes out its most recent 2 week high with at least 15% gains
9) Uptrends that are 12 weeks or more may be ripe for a correction. The first 2 pullbacks to the 50 day are usually safe.
Intermediate term uptrends and downtrends generally last from 8 to 16 weeks with 12 weeks being the norm.
10) Shorting is a viable strategy in downtrends for experienced traders only. In general, reverse the above rules
11) Tweet Mikey @themarketshadow with questions or ideas

Monday, October 13, 2008

What just happened and what is to come

9:53 DJIA 9041 + 590 VIX 60.44 GOLD 837 -22 OIL 81.13 +3.44
The Market just discounted the entire recession in 2 weeks. The prices that we saw last week were good ones. They were incredibly cheap by any standards. That is the good news ..the bad news is that we will see those prices again in the future. The economic news will keep getting bad for the next year and the stock prices will follow. The thing to do here is to sell this rally. This is tricky but this rally will be the best one we see in a long time.

I bought the breakdown in this thing starting at about 10300 and continued to buy all the way down. I will look to sell all my positions if we see 10300.
It was my opinion that the crash would not happen before the election. I was wrong but will make a profit from this mistake if we rally to 10300. I think the public is going to be told that everything is OK now. They will sell off Gold and selloff the bond market tomarrow to let the traders know its ok now.

According to the story the key to the stock market is taking its key from bonds. There is panic buying in the bond market. They want to see the bonds selloff. The problem is that today the Bond markets are closed for Columbus day so uncertainty is still there. I am guessing that the bond market sells off tomarrow and the all clear whistle is blown. That is my cue to step to the sidelines.

12:15 DJIA 9103 + 651.60 Chuga Chuga
DIG 34 looks like a buy adding here UYM 26.29 a buy turning the corner

Close DJIA 9398 +947 VIX 54.99 GOLD 834 -25 Oil 82.23 + 4.60 That will teach them to mess with us. Like I said welcome to option expiration week where all things are possible.Have a good Day...Mikey The beat goes on.
Posted by at

2 comments:

jaxwhitey said...

Any idea on how low gold sells off short term Mikey? Just trying to get a feel for what level I should set my sell limit on my GLD puts. It would be great if I could get another drop in gold like the other day while the VIX is still inflated to maximize my gain.

October 13, 2008 at 11:12 AM
Mikey's trading account said...

I think Gold gets clocked near term

October 13, 2008 at 1:56 PM

Post a Comment

Subscribe to: Post Comments (Atom)