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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

Thursday, June 4, 2009

They like Oil Service now ..How predictable

Buy These Oil Services Stocks Now: Analyst

Oil services stocks are the place to be for investors to profit from the runup, said Kurt Hallead, oil services analyst at RBC Capital Markets.

“With economic green shoots coming up, that means energy demands are going to start picking up and that’s why oil prices have run,” Hallead told CNBC.

When companies put more oil rigs to work, they will experience pricing power, said Hallead.

“What I’ve seen from the investment community is that we’re starting to anticipate an improvement in the rig count here in the U.S. and that improvement in the rig count is going to lead to some pricing power and earnings momentum,” he said.

He said that as an investor, it is better to be early in the stocks than later.

“That’s where you can generate your excess return,” he said.

See Latest Oil Prices Here
Recommendations:

Weatherford [WFT 20.85 0.85 (+4.25%) ]

Schlumberger [SLB 58.31 1.42 (+2.5%) ]

Smith International [SII 29.68 1.01 (+3.52%) ]


All I can say is this is a joke. Who makes this stuff up? Green shoots. The only green shoots I see are Green Parachutes as the boys jump out of the oil stocks before the plane crashes!!

Don't get me wrong I would expect them to run these stocks up in the near term to create excitment but the big money will be made by shorting this run up not trading the short term rally.


The beat goes on...Mikey
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