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

Friday, December 12, 2008

Auto bailout power play

DJIA 8406 -148 VIX 58.32 Gold 818-8.60 Oil 43.55 -4.43

Auto bailout drama is about setting the stage for union givebacks. You know you can have something bad or nothing good. The process when finished will set up the auto companies for profitablity for the next cycle. GM is a buy here not a trade. It is a long term hold that will be a 10 to 1 if you are willing to hold for 3 years. The last one I did like this was AMR in 2003. The stock was 1.40 in March 2003 and by Jan of 2007 it traded at 40. Oh by the way it lost money the whole time. I see GM being the same thing here. Of course, the autos will be bailed out. Of course, the economy will be bailed out. We are bottoming now and when you bottom you keep getting the same old bad news and will get these slams down just when you think things are improving. It is the nature of the beast. The strategy is to buy these slams and hold on.
The same thing is happening to the banks. Over the past few days the alot of "analysts" have downgrade the banks. Tell me something I don't know you bozos. The slams on these downgrades are buys. The insiders and buying each of these hits if you let fear rule you decisions they get the stock. We are going higher...Mikey

Added to GM at 3.11
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)