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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

Tuesday, November 3, 2009

Buffet bets on America ...AND spilits his stock...Now everyone can buy it

Investment Genius Warren buffet is making a bullish bet on America by buying BNI. Hey if Warren is buying that means that everything is OK, right?. Just when all of the economic numbers are starting to cave in. Not only that he is splitting his stock 50 for 1 making it affordable for all of the little people. What a guy. Warren all I can say is that you really care. What a nice old guy. I makes me want to cry.

Remember, Warren bought GE preferred stock on Sept 17, 2008. The stock was 22 at the time. The preferred is convertible at 22. It bounced to 26.05 in a week and then traded to 6.85 in March 2009 it is now 14.35. That was his last big buy until the BNI buy today.

CNBC is running spots on how to invest with Buffett. The are naming Coal stocks an anything a railroad can move ie commodities. This is clearly advertisingf for the boys to sell out hose stocks.
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