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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

Wednesday, December 17, 2008

Look at these rates... Holy Mackerel Andy

US3M 3-Month T-Bill 0.005
US6M 6-Month T-Bill 0.19
US2Y 2-Yr T-Note 0.62681
US5Y 5-Yr T-Note 1.2196
US10Y 10-Yr T-Note 2.127
US30Y 30-Yr T-Bond 2.6319

The 30 year is 2.65% My God.


The banks are getting their money for free and the Fed say we are going to keep them there as long as it takes. I will sleep like a baby under these conditions.

About oil 42.29 it looks cheap as hell to me now. DXO is 3.10 DIG is 32.24
Looking to buy on sharp hits. DXO at 2.80 DIG at 28.56

UYM at 16.59 looks like a coiled snake ready to strike. Still below the 50 day now at 17.13 and falling. I will buy dips below the 20 day now at 12.96 but rising.

Gold now in my shorting zone 874.90 +32.20 will be adding to my DZZ soon now at 25.70

UYG 5.96 looking for 10 to 11 by April will add on on sharp sell offs below 20 day now at 5.43

XHB 12.99 (House builders ETF) looking to buy on sell off below 20 day now at 11.68 and rising.

SSO 26.64 Looking to buy sell offs below the 20 day now at 24.48

URE 6.01 (Real estate ETF) 20 day at 5.23 and rising like it below this average.

On CNBC they are still trying to figure out if this rally is for real and we are 1500damn points off the low...Hello!!!!I am fine until they figure it out.
Posted by at

2 comments:

yoyo said...
This comment has been removed by a blog administrator.
December 17, 2008 at 9:58 AM
Mikey's trading account said...
This comment has been removed by the author.
December 17, 2008 at 1:02 PM

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