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

Friday, June 12, 2009

CNBC touts Africa

Look at my post of 5/21 Arron Burnett CNBC anchor was in Africa. They touted AFK then 25.14. Today CNBC again spotlights Africa. The AFK is now 28.15 so it is going up. I would assume we will hear more and more about this. Remember that by investing in Africa, China, India money is being sent to those countries. The process of spreading the wealth around the world and OUT of the US continues. This has been going on for quite some time. The investment capital is leaving this country and being replaced in the from of debt by our consumers and our government.
Anyway before I get on my soapbox I will just document this process now and leave it at that. We are now 2 weeks into the sales job for Africa.

Mikey

Order to buy C at 3.25 as I expect it to rally after the conversion.
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)