Posting Times

Posts will be between 8:30 PM to 10:00 PM PST
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, May 3, 2010

Thank God They saved Greece

DJIA 1168.38 +159.77 SPX 1203.38 +16.69 Nasdaq 2501.33 +40.34 VIX 19.71 -2.34 Gold 1183.20 +2.50 Silver 18.84 +.20 Oil 85.32 +86.79 +.64 Nat Gas 3.985 +.06 DBC (Commodities) 24.60 +.16

Dollar 82.51 +.519 EURO1.3194 -.0114 Brit Pound 1.539 -.0034 Aussie .9256 -.00259

IEV(Europe Index)37.16 +.33 EEM (Emerging Market Index) 42.31 +.29 EWZ (Brazil)71.93 -.32 FXI (China Index)41.14 +.30

TLT (LT US Bonds) 90.75 +.05 IEF (7-10 yr US Bonds)90 -.02

GDX(Gold Miners) 49.80 -.71 IYR (Real estate) 54.72 +1.76 (XLF Financials) 16.43 +.28
XLE (Oil) 60.68 +.78 XLB (Materials) 33.90 -.08 XRT (Retail) 43.65 +.89 XLK (Tech) 23.74 +.36 XLV (Health care) 31.10 +.22

European countries agreed to an aid package worth 110 billion-euro ($146.5 billion) for Greece, the biggest-ever bailout of a country. The ECB said it would accept all bonds — even junk-status — as security for loans. Well now that is certainly good news. We dodged a bullet on that one. It kind of reminds me of Bank of America buying Countrywide credit.

In other news, Warren Buffett defended Goldman Sachs [GS 150.05 4.85 (+3.34%) over the weekend, saying the bank's behavior does not warrant public fury. Goldman shares rebounded today, after sliding nearly 10 percent last week, leading an aggressive market selloff on Friday. Buffett also presented an upbeat outlook for the U.S. economy, among a number of other comments.

The Wall Street Journal reports that General Growth Properties [GGP 15.66 -0.04 (-0.25%) ] is favoring the bankruptcy recovery plan put forth by Brookfield Asset Management rather than a competing offer from Simon Property Group [SPG 92.62 +3.69that is great news for SPG because that means it does not have to buy more commercial property.

As they say on CNBC today the relentless rally continues.


Mikey
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)