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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

Friday, April 3, 2009

These Guys are good...Look at this One!!!!...A mind blower

DJIA 7924 -54.40 VIX 40.95 Gold 905.20 -3.70 Oil 51.72 -.72 Dollar Index 84.85 -.04

Bailed-Out Banks Eye Toxic Asset Buys: Report

U.S. banks that have received government aid, including Citigroup, Goldman Sachs, Morgan Stanley and JPMorgan Chase, are considering buying toxic assets to be sold by rivals under the Treasury's $1 trillion plan to revive the financial system, the Financial Times said.

Citigroup [C 2.67 -0.07 (-2.55%) ] was considering whether to take part in the plan as a seller, buyer or manager of the assets, but no decision had yet been taken, the paper said, citing people close to the company.


Goldman [GS 113.91 -0.31 (-0.27%) ] and Morgan Stanley [MS 22.48 -0.63 (-2.73%) ] have pledged to increase investments in distressed assets, the paper said.

This week, John Mack, Morgan Stanley's chief executive, told staff the bank was considering how to become "one of the firms that can buy these assets and package them where your clients will have access to them," according to the paper.
(Mikey says...If John Mack doesn't do it Mikey will!!!)

Spencer Bachus, the top Republican on the House financial services committee, told the paper that he would introduce legislation to stop financial institutions "gaming the system to reap taxpayer-subsidized windfalls."

Bachus added it would mark "a new level of absurdity" if financial institutions were "colluding to swap assets at inflated prices using taxpayers' dollars," according to the paper.
(Mikey says...Lighten up Spencer


Citigroup, JPMorgan [JPM 28.03 -0.13 (-0.46%) ] and Goldman declined to comment to the paper.

The U.S. government's plan, known as the Public-Private Investment Program, gives government help to private investors looking to buy loans and securities from banks.

"It's an open program designed to get markets going," a Treasury official told the paper, adding that "it is between a bank and their supervisor whether they are healthy enough to acquire assets."

A Citigroup spokesman in Hong Kong was not immediately available for comment, while JPMorgan's Asia-Pacific spokesman did not immediately return an email seeking comment.

A Goldman Sachs spokesman in Hong Kong declined to comment. A Morgan Stanley spokesman from the company's office in Hong Kong was not immediately available for comment. (Mikey says he didn't comment because he was speechless!)


Mikey says ....
The problem that the banks had was that they had to mark to the market the unsaleable assets and were bleeding red ink. The new rules will let them revalue their assets without marking them to the market. Now we see that the very banks that were bailed out are now thinking of buying the illiquid assets the other banks are holding on their books. You know I'll buy yours if you buy mine and that will start the market trading again. Of course the whole thing will be funded by the Fed and backed by the FDIC. WHAT A GREAT COUNTRY!!!!!!!!!!!

Unfair you say...DEAL WITH IT GOLD BUGS!!!!

The beat goes on....Mikey
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