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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, December 8, 2008

The Storm is Over

DJIA 8859 +223 VIX 59.34 Gold 769.50 +17.30 Oil 42.84 +2.04
Todays weather report:
The storm has passed and clear skys are ahead but rumors of another storm will be persistant in the near term. Accuweather predicts that there are no severe storms ahead.
This is the news today: The tone is decisively calmer

From CNBC:
It is probably no coincidence that the interim bottom for the equity market was set the day before President-elect Barack Obama began a series of public announcements and appearances meant to address the economic and financial crisis, stabilize the financial markets, and shore up confidence.

The low, of course, was set on November 20th, the day before Obama announced that Timothy Geithner would be his nominee to become U.S. Treasury Secretary. I said on the following day that Obama's announcement could mark the turn and that beyond Geithner's appointment what was important was Obama's quick rollout of his economic team, which cast the President-elect as an activist on the financial crisis, having moved quickly and with conviction.

The tone that Obama set will likely continue to benefit the financial markets for weeks to come, although there will be plenty of obstacles along the way. Nevertheless, Friday's dreadful jobs report has reinforced Obama's mandate to act decisively, and all indications are that he will. In addition, the Federal Reserve has been empowered by the news and it will likely make further forays into the realm of quantitative easing and will likely expand its program of purchasing securities, targeting long-term rates, and of funding the consumer and business lending markets.

Go with for now it will get alot better in the next 2 months. The beat goes on ...Mikey

11:48 UYM could be an eye popper here at 13.96
Like SAA at 21.06 and FCX at 20.83

Gas prices rising today ...Film at 11
Posted by at

2 comments:

jaxwhitey said...
This comment has been removed by a blog administrator.
December 8, 2008 at 11:45 AM
Mikey's trading account said...
This comment has been removed by the author.
December 8, 2008 at 12:34 PM

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