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

Thursday, July 30, 2009

They've found Gold in Hell ...It's all about price now

DJIA 9236 +165 SPX 995 +20.22 VIX 25.66 +.25 Gold 935.70 +8.50 Silver 13.48 +.2170 Oil66.08 +2.73 RBOB (Whsl Gasoline)1.93 +.08 Dollar Index 79.45 -.33 EURO 1.4059 +.0028 (Long Term Gov Bonds 91.35 -.35 IEF (7-10 Yr Gov Bonds89.62 -.28 XLF (Tech Index)12.96 +.37 XLE (Oil Index)50.22 +.78 XLF (Financials index) 12.96 +.37 EEM (Emerging Markets)35.91 +1.16 FXI (China Index)42.37 +1.11

Stocks rallied Thursday as investors were encouraged by the latest jobless report and round of corporate earnings.

The Dow Jones Industrial Average was up more than 1.6 percent, putting the average above 9,200. The S&P 500 was closing in on the 1,000 mark and the Nasdaq topped 2,000

Jobless claims rose by 25,000 last week to 584,000 but investors were encouraged as talk on the Street put the number as high as 600,000. Plus, the four week-moving average, which smooths out weekly fluctuations, fell to its lowest level since Jan. 24. And claims were the lowest since April.

This reminds me of a story about a group of stock brokers in a bar talking after work. The door opened and a man rushed in and started yelling...They've found Gold in Hell...They've found Gold in Hell. The oldest broker started to laugh as the rest excitedly ran for the door and went straight to Hell. Then the Bartender saw the oldest broker stand up and run for the door. He said where are you going and the oldest broker said there may be some truth to that rumor.

This is where today's market story is. The rumor is that the economy is improving and they are starting to run for the door even the the story is absurd. Why, there may be some truth in that rumor. It is all about price now we will worry about the reality later.

No trades today.

Observations of note.

I am noticing that Gold is lagging on this rally, at 938 is it well off of its highs.
MCD is also showing relative weakness to I will short below 55.
GDX Gold miners index is also showing weakness. Looking to short this below 36.75
The beat goes on ...MIkey
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)