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

Monday, October 26, 2009

News from the experts "Stocks Pulling Back"

DJIA 9881 -81 SPX 1070 -8.80 VIX 24.07 +1.82 Gold 1047 -9.40 Silver 17.31 -.40 Oil 78.61 -1.89 RBOB (Whsl Gasoline)203.25 -.01 Dollar Index 76.04 +.44 EURO 1.4864 -.0140 UNCH Long Term Gov Bonds) 94.16 -.78 IEF (7-10 Yr Gov Bonds)90.91 -.30 XLK (Tech)21.19 -.13 XLE(Oil Index)57.31 -.91 XLF Financials Index)14.80 -.30 XHB (Homebuilders Index)14.85 -.18 EEM (Emerging Markets)40.35 -.41 FXI (China Index)44.07 -.29 GDX (Gold Miners Index)44.78 -1.85


The market is down and the experts are using the term pull back to describe it. That is a very nice way to put it. It does not scare the players who will be looking to buy something like a pull back but would not want to hold or buy a crash. In other words they don't believe that this is the start of something big.

That is the term they use at the beginning of a big sell off. I am getting short term sell signals on just about everything now. It is too early to say that this is the top but I see lots of stocks getting murdered now and that has not hit the big averages yet.

This pull back looks like something bigger to me than the picture they are painting. I am guessing that it will back and fill on a daily basis so that neither the shorts or longs will not get a good grip on what is happening.



Mikey
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)