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

Wednesday, May 13, 2009

Tug of War

DJIA 8323 -144 VIX 33.05 Oil 58.72 -.13 +.18 Gold 927.40 +3.50 Dollar Ind 82.53 +.11

It's bottoming ...no it isn't...yes it is....no it isn't. I know one thing its options expiration week and the last 2 weeks they bought calls and this week the calls are going to options heaven.

Art Cashen was on today saying that we are rolling over and we will go to 820 SPX. The interviewer Joe Kernan was giving him kudos for calling this correction and giving the sage advise. Well if you have followed this blog Art has been bearish from 6600. He has been predicting a sell off since the start of the rally in April.

The retail sales numbers were "bad" today and as Art says look out for the sell off in commodities. My position now is that we are consolidating this move and that in the near term neither the bulls or bears win. In other words, buy sharp hits sell sharp run ups.


Bought FAS @ 8.91

Keep an eye on GM now taking out 10000 year lows now and hey the Directors sold, very believable. If a deal is going to get done it will be now.

Still have buy in at .99 went to 1.00 today now at 1.17 +.02 up????
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)