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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

Wednesday, June 3, 2009

Experts say buy on Dips don't wait for big correction...I wouldn't do that with their money

DJIA 8632 -108 SPX 927.41 VIX 31.47 Gold 962.90 -21.50 Oil 65.99 -2.56 Dollar Index 79.56 +1.09

Buy on Dips Instead of Pullbacks: Managing Director

Investors may have missed the big market rally, but there is still room to buy, said Scott Billeadeau, managing director of Fifth Third Asset Management, and Larry Kantor, head of research at Barclays Capital. (See their investment recommendations, below.)

“I think everyone’s waiting for a pullback so that they can get in,” Billeadeau told CNBC. “So that tells me we’re not going to get much of one — and if we do, it’s not going to be as big as people expect.”

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Billeadeau suggested buying on some dips instead of waiting for any significant pullbacks.
“We have increased our exposure to cyclical groups in the market over the past couple of months,” he said.

Kantor said although people have missed this rally, “sentiments have gone from Armageddon to 'there is light at the end of the tunnel.'”

Kantor said there is still room on the upside for some positive economic data and recommended investors look into stocks that have gotten beaten down the most.

Recommendations:



Billeadeau Increased Positions in:

- Technology

- Consumer Cyclical

- Materials

Billeadeau Decreased Positions in:

- Consumer Staples

- Health Care

Kantor Likes

Kantor Likes:

- Industrials

- Materials

- Energy

- Commodities

- Emerging Markets

Hey that's my short list!!!!!!!
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