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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

Monday, April 26, 2010

Sell Mortimer Sell

The feds are selling the warrants they received from the TARP bailout. They are bailing out of the bailout. That should tell you something. These two articles appeared on CNBC today:

Article one:
The U.S. Treasury said on Monday it was launching its plan to sell off its 7.7 billion share stake in Citigroup "in an orderly fashion".

The government's plans to sell its Citi [C 4.69 -0.17 (-3.5%) ] shares marks another step in the withdrawal of the United States as a major stakeholder in the company.

The Treasury said in a statement it had given Morgan Stanley [MS 31.0992 -0.8408 (-2.63%) ], its sales agent, discretionary authority to sell up to 1.5 billion common shares under certain parameters set out in a pre-arranged written trading plan.

The Treasury said it expected to provide Morgan Stanley with the authority to sell more shares after the initial amount.


The U.S. government owns 27 percent of the bank's shares, a stake it acquired during bailouts to strengthen the bank's capital base in 2008 and 2009.

Shares of Citi fell 1.7 percent to $4.77 in premarket trade shortly after the Treasury's announcement.

Article two:
Goldman Sachs and Citigroup stocks remain good opportunities for investors despite obstacles both companies face, analyst Dick Bove told CNBC.

The two banking titans have been in the news for different reasons—Goldman [GS 152.502 -4.898 (-3.11%) ] because it is under fire for its conduct during the mortgage market collapse and Citi [C 4.69 -0.17 (-3.5%) ] for the government's move to start shedding its interest after bailing out the company.

Citi continues its rebound and could see its shares nearly double in price to $8.50, said Bove, banking analyst for Rochdale Securities


Question: Who does Dick work for???? Second, What if they would have used Goldman to do the deal? Third, how much dinero is Morgan going to make on this deal.

Why don't we set up a company call the US federal banking company and let the treasury make the trade and not Wall Street. This happens as financial reform is taking place. These guys are not changing anything. Same old tired bunch of crooks feeding off the public dime.

How much more obvious can it get. The government is spoon feeding Wall Street and the giant corporations as the public sector dies. When they talk about the recovery they always mention the employment and housing as a secondary consideration. Why?
Because to these fat cats the workers and where they live is secondary. Who is making the money and where is it being made? Not in this country.

We are running a massive deficit to bailout the very people that caused it. I don't call this profits as they report. I call it theft. The corporate profits rise as the deficit balloons.

This week they are putting their heads together to figure out how to get the deficit under control. That means tax increases and cuts in public spending. What will be left after the boys dump their stock is not a pretty picture.


Mikey
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