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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

Mikey the Cynic weighs in on Bernie Madoff Scandal

In my mind this has been know for a very long time. The timing of the story co insides with the you can't trust anybody with your money story that is now making people be "safe" with their money. You know Martha you just can't trust anybody now adays.
This could have broken 2 years ago but that would have spooked investors and at that time the system was selling its global para dime story. The system wanted to keep investors in the market and not spook them out of it. There are many examples of this from Enron to Martha Stewart that break after the market has had a big sell off. These stories become the cover story to keep investors out as the market moves higher. It is a standard ploy of the wizard behind the curtain.
I heard a Maddoff investor on TV saying that he lost everything but if you were in the stock market or real estate market you still have something left. Oh that should make us feel better that we had our money with reputable Mutual Fund company's that told us that everything was OK and said invest for the long term and we only lost 50%. You know Martha thank God we only lost 50% we have something to be thankful for. Look at those poor idiots that invested with Berie.

You always see these confidence breakers after the market has bottomed. Here it is again and you know...the beat goes on...Mikey
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