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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, June 30, 2010

The Golden Apple Short

I am now short AAPL and Gold. Neither one has broken but I believe those breaks to be very near. APPL 255.35 is just below its 50 day of 257.95 and is sneaking through it with no fanfare. I like this kind of action because it reduces the significance of this important average. Not to mention that this is the 4th time it has broken it in the last 7 weeks.

Gold (GLD) is trading at 121.55 its 50 day is at 118.47. Most if not all the people I talk with feel that Gold is bullet proof. Those are the conditions that develop before a crash. I think that it is getting ready to crash.

I am calling these short positions the Golden Apple. Want to take a bite??? I didn't think so.


Message for Al... Bought the SCO at 15 today..Double short Oil
Updated my picks at socialpicks.co/mikey22222
Note: AAPL closed at 251.49 could bounce back to 50 day at 258 would add to it there.

Mikey
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