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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

Wednesday, March 10, 2010

Watching gold

DJIA 10567 +2.95 SPX 1145.1 +5.16 Russ2000 674.93 +5.30 NASDAQ 2358.95 +18.27 VIX18.57 +.065 Oil VIX 32.99 -.59

Dollar Index 80.53 +.088 Aussie 91.52 +..24 Euro 1.3627 +.0024 Brit Pound 1.465 -.0008
TLT(20yrGov Bonds)89.59 -.23 IEF (7-10Gov Bonds)90.05 -.15

XLK (Tech22.67 +.14 XLE (Oil Index)58.54 +.48 XLF (Finan Index)15.44 +.14 XHB Homebuilders Index)1.72 -.01 GDX (Gold Miners Index)44.94 -.64 XLB (BasicMatIndex) 32.87 -.08 XRT (Retail Index)39.74 +.26

EEM(Emerging Markets) 41.50 +.29 FXI(China Index)41.50 +.09 IEV(Europe350)37.82 +.19 (Brazil)73.53 +.52

DBC (Commodity Index) 23.70 +.05 Gold 1108.10 -14.20 Silver 16.99 -324 Copper 3.35 -.043 Oil 82.09 +.60 RBOB (Whsl Gas)2.28 +.02 Nat Gas 4.559 +.043

Gold noteably weak today a close below 1100 would be interesting and a close below 1060 would flip it in sell mode again. It has consistantly been ahead of the market


Gold: Note the action of the MACD rising back to zero line. It is starting to roll a cross below zero would put it back in sell mode.



Gold Stock : Notice that although the DJIA is near its highs Gold stocks are way off their highs. The action of the MACD now indicates that the oversold condition has been worked off.




The DBC An index of commodities Light Sweet Crude Oil (WTI), Heating Oil, RBOB Gasoline, Natural Gas, Brent Crude, Gold, Silver, Aluminum, Zinc, Copper Grade A, Corn, Wheat, Soybeans, and Sugar. Look familiar?

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