Mikey... The Market Shadow: TARP Update...Plan proceeding details soon

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

Wednesday, March 11, 2009

TARP Update...Plan proceeding details soon

Geithner: Toxic Asset Plan Close to Finished

Secretary Timothy Geithner said Tuesday that that the Obama administration is close to finishing a plan to deal with the toxic assets at the heart of the financial crisis.

Geithner told interviewer Charlie Rose late Tuesday that the administration started with “just a deep mess,” but will keep working on the problems until they’re fixed.

Geithner said the plan will be unveiled within the next couple of weeks. It will provide government financing to private investors who are willing to buy the bad assets clogging banks’ balance sheets.

The administration believes that by getting the bad loans and other troublesome assets off banks’ books, it will encourage financial institutions to resume more normal lending to consumers and businesses.

Bought DAL@5 added to ABK@.50 added to IP @5.35