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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 10, 2009

More bullish analysts chime in DJIA to 12000 by Sept..Oh Goodie

Dow Will Reach 12,000 By September: Strategist

Mike Rubino, president of Rubino Financial, and Harry Clark, president and CEO of Clark Capital Management Group, shared their market strategies and investment recommendations in a bulls vs. bears discussion.

“The sky is not falling — it’s rising,” Clark told CNBC. He believes that the Dow will reach 12,000 by September or October of this year.

“Ninety percent of all stocks are above their 10-day moving average, which means we’re not going to have any more corrections above 5 to 6 percent—that’s historically a fact,” he said.

Clark said consumers have hit their lowest point and will start spending again, which is a bullish sign.

Second Opinion:

On the other hand, Rubino said while he is bullish in the short-term, there are still economic reasons behind his longer bearish outlook.

“Unemployment rate is rising, the housing market is horrible, banks aren’t lending, consumers aren’t spending, and to top it all off — we have the communization of the American economy,” said Rubino.

Recommendations:

Clark Likes:

Metals, Mining, Steel and Coal ETFs

Consumer Discretionary

Financials

Emerging Markets

Rubino Likes:

Energy—Especially Oil

Emerging Markets—Especially Asia


Look at the stocks they like. Isn't it interesting that they all like the same things? It is almost like they are getting their ideas from the same source. I would think that maybe that source is selling these stocks.

Mikey
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