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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

Rates on the 30-Year Mortgage Drop to Record Low of 4.85%

You ain't seen nothing yet they are going to 4 to 4.25%. Yesterday the bond auction went poorly because of a poor bid to cover ratio. There is also talk that the Chinese are losing patience with us. There is also talk that Euro Union president says we are spending our way to hell.

Don't listen to this the bonds are going to kick butt and the rates are gonna fall hard. Mortgage rates are going to 4 to 4.25% ...Mikey

I have two things to say:

1) Mister President of the European union you don't get it. You are the ones that are going to hell.( the Euro..135.86.. is going down the drain)

2) Gold Bugs when the rates get to 4% my guess is that you are screwed.
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