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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 17, 2009

Headlines for today ...A recovery???

DJIA 8512.53 +6.12 SPX 910.51 -1.46 VIX 31.83 Gold 932.50 +.30 Oil 69.50 -.97 Dollar Index 81.15 +.02 TLT (Long Term Gov Bonds) 92.76+.40 IEF (7-10 Yr Gov Bonds) 90.19 +
.226


Oil Prices Fall Toward $69 After Jump In US Gasoline Supply The price of a barrel of oil fell belwo $70 Wednesday following official government data that showed a wider-than-expected fall in crude stockpiles last week, but a surprise gain in gasoline supply.

FedEx Posts Loss, Gives Outlook Below Street

Wells Fargo, PNC Among 22 Banks Downgraded by S&P

Mortgage Applications Plunge to Near 7-Month Low


Remember when this rally started we had seen a big rise in Mortgage applications. That is the fuel for the consumer. Now we are at 7 month lows.

The fundamentals are deteriorating now. Their recovery story is starting to crack


I must also report that the honks on CNBC are turning negative now so it would not surprise me to see a rally now. No new buys today

Mikey
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