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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, May 4, 2010

Sell off blamed on Greece..I don't think so

DJIA 10897 -254 SPX 1171.04 -31.22 Nasdaq 2416.49 -82.61 VIX 24.98 +4.81 Gold 1171.90 -11.40 Silver 17.97 -11.40 Oil 82.91 -3.28 Nat Gas 4.009 +.009 DBC (Commodities) 23.90 -.65

Dollar 83.38 +.98 EURO 1.3006 -.028 Brit Pound 1.5173 -.008 Aussie .9101 -.0165

IEV(Europe Index35.52 -1.57 EEM (Emerging Market Index) 40.36 -1.92 EWZ (Brazil)68.23 -3.57 FXI (China Index)39.49 -1.72

TLT (LT US Bonds) 93.01 +1.32 IEF (7-10 yr US Bonds)90.76 +.55

GDX(Gold Miners) 49.05 -.83 IYR (Real estate) 53.14 -1.46 (XLF Financials) 16.02 -.45XLE (Oil) 58.72 -1.85 XLB (Materials) 32.62 -1.35 XRT (Retail)42.58 -.99 XLK (Tech) 22.96 -.75 XLV (Health care) 30.85 -.17



They are blaming this sell off on Greece but look at these charts

Brazil



Freeport Copper and Gold



China



Copper



Google




Something does not add up with their picture of world economic growth does it? The next charts to look like these are the DJIA and Gold. Gold is down today why? The reason is deflation and economic slow down. The Cramers of the world buying Gold now are in for a big surprise.



It looks like I will get my sell signal today with a close below 10970. I am moving my sell on Gold to a close below the April 19 low of 1133

Mikey
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