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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, November 10, 2008

D Bank says GM (3.38) price target is ZERO..Mikey says its 10

We all know where GM is going now ...aaaa its zero. They say even if it gets the bailout money its going to zero. Well at least we know our downside risk. We also know that the folks that bought it on margin are having to put cash in the account. This is a good reason not to buy on margin because when the bottom comes this is what they do.
I still think that this stock goes to 10. Its Mikey VS D Bank. Personally I think D Bank wants the stock along with every other Investment house out there. Will Mikey dodge another bullet stay tuned to this blog and find out the exciting conclusion to this episode. PS I am trying to stay good and not buy this stock until it closes over 4 but I am weakening.

PS if you were GM and you wanted 25 to 50 billion what kind of earnings would you report?????? That's right me too. By the way if you did this and the stock broke to a new low and you knew you wre going to get the money would you buy your own stock?? Me too. The beat goes on...Mikey
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