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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

Monday, August 31, 2009

If you really want a recovery...Help the consumer!

Remember in 2007 when real estate price were tanking. What did the Fed do. Answer: very little. If they wanted the prices to stabilize then they would have cut rates to 4%. The result was collapsing real estate. They did not lower interest rates then because of the THE STRONG JOB MARKET would prop up real estate. Remember?....Bernanke said in July 2005

"While speculative behavior appears to be surfacing in some local markets, strong economic fundamentals are contributing importantly to the housing boom," ...
Those fundamentals, Bernanke said, include low mortgage rates, rising employment and incomes, a growing population and a limited supply of homes or land in some areas.
"For example, states exhibiting higher rates of job growth also tend to have experienced greater appreciation in house prices,"
and added:
"The economy is strong. Jobs have been strong, incomes have been strong, mortgage rates have been very low," the chairman of the White House Council of Economic Advisers said.
The pace of housing prices may slow at some point, Bernanke said, but they are unlikely to drop on a national basis.

"We've never had a decline in housing prices on a nationwide basis," he said, "What I think is more likely is that house prices will slow, maybe stabilize ... I don't think it's going to drive the economy too far from its full-employment path, though."



What is happening now. The consumer is dying no jobs loss of wealth high interest rates on consumer loans, What are they doing about it? Freaking nothing. That's right nada..zilch..zero. The same thing they did about real estate. Why because the economy is bottoming and the banks are safe now and INFLATION WORRIES.

What a joke, inflation is the last of our worries. The problem is that Joe Sixpack is BROKE. He can't borrow, his credit card company is not extending him credit and if they do it's 20%.

What idi the Goernment tell the banks. You can't raise rates AFTER FEB 2010. What not lower rates because the tyaxpayers bailed you out. but you can't raise rates. SOMETHING IS REALLY WRONG WITH THIS PICTURE.

I WILL TELL YOU THE TRUTH THAT THEY WON'T TELL. THEY DO NOT WANT A RECOVERY NOW.
The consumer is 75% of the economy and the Fed is doing nothing to help him. Jobless recovery...those words are mutually exclusive they don't fit unless you are selling out of your bank stocks.
What is Bernanke saying now....The economy is recovering.
Again I say Ben you are a liar!

What are the governments of the World buying now? The Dollar

What are they selling? Gold


The beat goes on Mikey
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