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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, April 13, 2010

The road to perdition

Americans will spend more on taxes than clothing, food, and shelter combined. What has the tax payer gotten for their money?

Bailouts of most everyone with a lobbyist.

A coming federal takeover of the health care system

A group of foreign welfare clients

Expanding government bureaucracies determined to run our lives.

Out of control entitlement programs that cannot be sustained

Thousand of pork barrel projects designed to re-elect every politician who voted for the above

A pension benefit Guarantee Corp fund that is running in the red.

A Fannie and Freddie that continues to lose money

Then there is the Social Security and Medicare. which together have 107 TRILLION in UNFUNDED LIABILITIES.

THERE IS NO MONEY IN THE FRAUDULENT "TRUST FUND" TO PAY FOR FUTURE BENEFITS.

America is starting to look like Greece only a few years behind. The President and Congress are attempting to run a welfare state on the cheap. This is like Madoff's ponzi scheme but on a massive scale.

Through all of this the market goes higher. Your tax dollars at work. The public treasury is being robbed and the corporations are showing profit. The banks are getting free money while the tax payer cannot get a loan.

The game that is being played today is the same game that the Bush administration and their investment banker friends played before the crash in 2008. They ran the dollar into the ground by spending and borrowing like drunken sailors.

This is the same game of leverage that was not fixed after the crash. The derivatives are still there but the total of bad mortgages in these leveraged pools are still growing. The problem was not fixed. The public treasury is being used to throw money at a problem that was created by bad financial management. Those same managers are still there doing the same thing they did before the crash except they are doing it on the public dime.

At some point the rats are going to jump this leaky ship and when they do the public will not only have a worthless stock portfolio but a government that is broke. I am truly angered and saddened by what I am seeing now.

Mikey
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