Posting Times

Posts will be between 8:30 PM to 10:00 PM PST
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 19, 2009

A selloff to give the traders religion

DJIA 7406 VIX 41.98 Gold 955.60 +66.70 Oil 51.04 +2.90 Dollar Index 83.75 -1.73

The move by the Fed to buy down the mortgages is a good thing. The inflationary effect now is nil in my opinion. The rally in Gold is bogus but is nails the shorts like me that thought it was on its way. Well that's trading for you. I still think we see 400. It would not surprise me to see the market have a sharp pullback here and give the traders some religion. The banks were getting a little to easy to make money. This is the nature of the beast. About 7100 in the DJIA would be about right......Mikey

Disclaimer:
By the way I suck on the short term market as you probably know.
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)