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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, May 19, 2010

Sell Signal on Gold and Silver

DJIA 10354 -156.74 SPX 1103.95 -17.44 Nasdaq 2272.95 -44 VIX 37.44 +3.89 Gold 1189 -25.10 Silver 18.08 -.799 Oil 68.12 -1.29 RBOB(retail gas)2.02 -.015 Nat Gas 4.22 -.115DBC (Commodities)21.56 -.34

Dollar 84.33 -.33 EURO1.2324 +.0123 Brit Pound 1.2324 +.0039 Aussie .8392 -.0221
IEV(Europe Index 32.79 -.19 EEM (Emerging Market Index)37.62 -.81 EWZ (Brazil)60.97 -2.11 FXI (China Index)38.06 -.38
TLT (LT US Bonds) 96.88 +.90 IEF (7-10 yr US Bonds)92.80 +.39

GDX(Gold Miners) 48.69 -2.80 IYR (Real estate)48.80 -1.27 (XLF Financials) 14.76 -.17 XLE (Oil) 53.92 -1.31 XLB (Materials)30.51 -.54 XRT (Retail)39.49 -.72 XLK (Tech) 21.90 -.28 XLV (Health care) 29.57 -.16


Gold is trading at 1189.50 and Silver is at 18.01. This is enough to give me a sell signal. I suspect that Gold goes straight to 1080 from here.
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