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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

Monday, May 18, 2009

The End Game...Kelly ,Kelly, Kelly,Kelly(song by Woody...from cheers)

Housing Market Shows Signs Of Recovery: Regional Banks

CEOs from several regional banks around the country told CNBC they are seeing some signs of “green shoots” in the housing market.

“The mortgage business is booming—70 percent in refinancing and 30 percent in new home purchases,” Kelly King, CEO of BB&T [BBT 22.12 0.49 (+2.27%) ], told CNBC. “On the low end of the houses, we’re beginning to see some movement…There’s a long way to go, but there’s definitely activity.”

“It’s green sprouts just like springtime in Chicago,” said Steve Calk, CEO of Chicago Bank. “We’re seeing large correspondent warehouse providers coming back into the market making money available to larger mortgage regional bankers. It’s a clear sign that people are looking back at supporting the mortgage market.”

Harris Simmons, CEO of Zions Bancorp [ZION 17.18 2.13 (+14.15%) ] said despite the “green shoots” that show signs of a turnaround; it will be at least 2010 before he expects any signs of stabilization in the housing industry.

“The tax credits are helping…[but] with the rising unemployment rates, it’s still a question mark for us,” said Simmons.

“We’ve been on the acquiring side,” said Simmons. “It’s a fabulous way for [regional banks] to be growing at the moment.”

Meanwhile, Calk said he wants the FDIC to be more open to regional banks acquiring smaller banks and to allow greater growth on the federal level

So what is happening now...The news turns better for the banks after the stock offerings. BBT you will remember had a stock offering last week. There is a huge flood of stock offerings in the banks. Never have there been anything like this. Now the system goes to work and touts the banks and tell us that things are getting better. It is true because they engineered all of this. They want out of their stock now and need to create some excitment in the group so they can sell. Later this year they are going to kick the crap out of these banks again and drop the interest rates to I think 4%. That starts the game all over again with the banks on their butts and we can do this again. We at the end game now but I think we have more to go...Mikey


Added to GLL @15.67...Gold short
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