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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, March 26, 2009

Economists at UCLA and UCSB forecast paints a grim picture....That's great news!!!

DJIA 7831 +82.76 Vix 40.96 Gold 939.50 +3.70 Oil 54.07 +1.30 Dollar Index 84.60 +.31

The boys at UCLA and UCSB forecast paint a grin picture of declining economic growth, lower retail sales, a troubled housing market and falling office prices lasting through much of 2010.California's unemployment rate will soar to between 12 and 15% by next spring and remain in double digits until at least the beginning of 2012, they said. "It looks like it will be a nasty recession, but not a depression, although the possibility that we could get into a depression has increased", said Dan Hamilton director of the UCSB forecast.

The thing I want to point out here is that I keep track of these idiots. They are never and I mean never right. In 2003 they said Real estate was a bubble and in 2005 they said it wasn't a bubble. That meant if you listened to them you would have missed the whole move and bought at the top. In 2004 they forecasted a sluggish economy because there was no job increases. In 2007 and 2008 they did not see the recession coming. Now they think the recession could possibly be a depression and it will last well into 2012.

They always feed this BS to the public and what is interesting is that no one ever calls them out on their prior forecasts. I am calling them out so remember this post and lets see what happens next. By the way the retail stocks are smoking today...The beat goes on ..Mikey

Added to YRCW today 4.11
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