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, May 21, 2009

Dollar sells off on fears of losing AAA rating

Dollar Index 80.73 -.35 Gold 949 +11.60 TLT (20 year Bond index) 95.31 -1.71

For the record I am posting the dollar index along with this news. The bond market is also selling off because"the Fed is buying less than expected." How convenient that this is all coming together right after a huge bond offering in early May and a "break out" in Oil and Gold. The Pros are telling us to buy Gold 948 and short the Dollar 80.73 and buy the TBT (short bonds)51.66. The TLT is 95.31 lets see where these all are in November. Guess who bought the bond auction.......THE FED and they are looking to buy more. We will check back in November to see if the FED made money. We will use the TLT now 95.31 to see if the bonds went up.

What is laughable about this is that they told us to be safe and BUY BONDS from Sept 2008 to January 2009. So all those folks that did that are guess what getting their ass kicked. Remember that Cramer said sell everything and stay in cash for 5 years?

The Fed and the treasury SOLD THE HELL OUT OF BONDS in the 4th quarter of last year. They are now in the process of buying them back AT A LOWER PRICE now. Get it????? The experts last year did not like equities and commodities during that period but they loved bonds. Now they are going to take away AAA status on the Dollar and downgrade our debt. Plus the experts-pros say what....Short bonds and buy commodities. The beat goes on...Mikey

For the record: Gold 949 Oil 60.86 Dollar Index 80.73 TLT 95.31
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)