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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

Market Technical Guru Art Cashen still Bearish..Whooo who!!

Art Cashin: The S&P's New Danger Number (870)

The Dow, S&P and Nasdaq are each up Monday. How should stock market investors read it? Art Cashin, UBS Financial Services director of floor operations, offered CNBC his insights.

"Some of it [trader optimism] has to do, believe it or not, with the Indian election. That's one geopolitical worry that's not as hot as before," Cashin said.

But he said there are contradictory forces at work:

"There's a real tug of war here. It looks like we're headed for a correction, but the bulls don't want to give in. This is a hypochondriacal week: The market's going to take its own pulse, take its temperature and see how good it feels."

What about climbing energy prices? Cashin attributed that not to economic fundamentals improving, but to "Chinese stimulus — maybe the only stimulus in the world that's working." He believes the same influence is driving up base metals concurrently with energy. Another non-fundamental factor driving oil prices today: reports that "two pipelines in Nigeria were blown up," according to Cashin.

He is monitoring the S&P 500 closely. "If we get a close this week below 870, then you could go down to the 820 region," Cashin warned.



Wouldn't it be cool if we closed below 870 and Art got even more bearish. That would be too much to ask right???? If it does Mikey buys. Well I would monitor what Art does and not worry about the S&P doing anything

In the above article he references the oil rally to pipeline blowing up in Nigeria..and China stimulus. Does that sound familiar???.Remember that one from last year. It never changes. The next thing we will hear is that Israel and Iran are going to go at it again and oil will go back to 100.


We are going higher

The beat goes on ....Mikey
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