Tracking market trends...An alternative to the main stream financial press
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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
Thursday, November 6, 2008
The news is ugly Yada Yda Yda
OK so the economic news bad right. It has been bad ever since the rally started we are still at 9000 up 1300 points. The rally is about liqudiity not the economy I remain positive about my long positions.
1 comment:
GM looks weak. You still like it. Stock plummets right before earnings. hmmmm...
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