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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

Friday, June 5, 2009

New Message....Expert and market guru Jim Rodgers says Dont Short the Market

DJIA 8775 +25 SPX 941.57 -.95 VIX 30.29 Gold 962 -20.30 Silver 15.11 -.51 Oil 67.98 -.83 Dollar Index 80.41 +.96 TLT 8996 -.57 IEF 88.70 -.79

Dollar Crisis Looming — Don't Short the Market: Jim Rogers

I’m afraid they're printing so much money that stocks could go to 20,000 or 30,000," Rogers said. "Of course it would be in worthless money, but it could happen and you could lose a lot of money being short."

Rogers typically holds both long and short positions, but his perception of global currencies' instability has led him to pull out all his shorts, he said. The last time he can remember doing so was before the market fiasco in 1987.

Rogers called the US dollar a "terribly flawed currency," adding that it could be the starting point for the next currency crisis.

"I would suspect that somewhere along the line...someone's going to say, 'I'm going to start selling mine before everybody else does,'" Rogers said. "That's when you have a currency crisis."

But instead of pouring money into stocks, Rogers said investors should turn toward commodities. This sector will lead the recovery if the global economy improves, and if it doesn't, they'll still be the best place because of inflation, he said.

Rogers' Recommendations:

Gold

Silver

Agriculture

Natural Gas

China: He has been buying into the country for 20 years

Bonds: "That's how I'm going to protect myself, eventually, is short bonds."

I am speechless..well almost. Man I have heard everything now.The same old message Buy Gold oil and commodities and sell the dollar. We are hearing this every day now. Now they put out this message of don't short the market. That's a good one. That is why I am posting this crap. To document this message when they blow this stuff away.
By the way this guy was saying the same thing with commodities on their highs last year. After all of this printing the dollar is about the same level it has been for the past year. The Euro hit a high of 1.60 and is 1.40 today so it has declined 10% against the dollar.
They are trashing the dollar big time and that is what makes sense to mom and pop investor. Mikey says that we are going to have a deflation and the dollar will be the strongest currency as the economies of the world go into the tank.

PS The article says that Jim has been short the market since 1987 Jesus the DJIA was 2000 in 1987. It fricken went to 14000 Jimmy. Now after about 6 bubbles you are not short????? Now there is a guy that has his act together. Notice he wants to short bonds. All I can say is the bond market is ready to rumble when he shorts it.

Added to ZSL today @ 7.67 first buy was 9.42 still have a buy in at 6.54.

I am not short the market yet will let you know. I am thinking that I may start with the SPX in the 950 to 1000 area we are now at 946.06.
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