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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

Thursday, February 19, 2009

Will the Banks be nationalized? Did Israel attack Iran? PS tomorrow is Options expiratons day

DJIA 7472 -83 Gold 975.80 9240 Oil 39.74 +2.33 Dollar Index 87.82 -.51
Yields 3 mth bill .30 6 mth bill .65 2 yr note .95 5 yr 1.80 10 yr 2.76 30 yr 3.55

Greenspan says nationalize the banks, Senators are saying nationalize the banks. Mikey is betting they won't. The last bet I made like this one was that Israel wont not attack Iran. Orders to buy more UYG at 2.25 and 2.

Tomorrow is Opt Exp day. I have seen some amazing things done by the Fed on those days. Maybe they will maybe they won't but it looks like a great setup here
The beat goes on ....Mikey
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3 comments:

jaxwhitey said...
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February 19, 2009 at 12:39 PM
WLD said...
This comment has been removed by a blog administrator.
February 19, 2009 at 1:55 PM
WLD said...
This comment has been removed by a blog administrator.
February 19, 2009 at 1:58 PM

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