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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, January 12, 2009

Earnings season starts today ..This is Options expiration week!!!

DJIA 8455 -144 VIX 46.05 Gold 819.80 -35.20 Oil 37.79 -3.04 Dollar Ind 83.08 +.41

Doom and Gloom noise is very audible now particularly on the financials with Citi and Bank Of America drawing the heat. I like both on this hit but will buy the UYG instead. About AA earnings if they hit this one hard I will be a buyer. Negative noise on commodities and oil also picking up which is a good sign of a bottom at hand. Still negative on Gold though.

Will buy the UYG tomorrow AM hopefully at near 4. Like the DXO at 2.25 like UYM near 12. Like SSO near 22...Hell I like everything here. It looks to me like they are running the stops here and when they are finished I think 10800 (200 day) is possible over the next month or so.

By the way this is options Expiration Week where all things are possible
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