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

Wednesday, October 28, 2009

This is getting Ugly

DJIA 9848 -33.78 SPX 1053 -10.23 VIX 26.05 +1.22 Gold 1033.40 -2.00 Silver 16.33 -.21Oil77.88 -1.67 RBOB (Whsl Gasoline)2.00 -.06 Dollar Index 76.50 +.18 EURO 1.4750 -.0045 Long Term Gov Bonds) 95.45 +.54 IEF (7-10 Yr Gov Bonds)91.79 +.32 XLK (Tech)20.96 -.12 XLE(Oil Index)56.70 -1.16 XLF Financials Index)14.32 -.28 XHB (Homebuilders Index)14.16 -.45 EEM (Emerging Markets)38.19 -1.36 FXI (China Index)42.47 -1.40 GDX (Gold Miners Index)42.58 -1.88


Santa Maria!!!!!!!!!! The DJIA has barely budged but more and more stocks are getting smoked. The Commodities and Metal stocks are falling apart. It is just a matter of days until they hit the DJIA.

The Euro has clearly topped short term and the "carry trade" is unraveling. The dollar index is now starting to wake up and is at 76.50. The world is completely asleep on this one and will be blindsided by the emerging dollar strength. Gold now at 1033 -2.00 is a sure thing to fall below 1000 and soon.

I have been saying that the story is bogus and everyone is on the wrong side of it. The setup is complete the waters have been chummed and the fish have been given their free lunch. It is time to drop the net and scoop them up.



Looking to short RSH V AMZN in a couple of days


Shorted MSFT @28.21 and AMZN @ 121.11

Mikey
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)