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

Friday, July 23, 2010

Market Rallies Gold sells off

DJIA 10424.62 +102.32 VIX 23.51 -1.12 10 year 2.9871 +.04 30 year 4.0081 +.056 Gold 1184.80 -11.20 Oil 79.02 -.28 USD 82.66 -.122
Mikey OB/OS index (80=OB 20=OS) 66
Trends: ST: UP---IT: Down--- LT: Down--- Money Flow: Positive

It appears that the "fear" created by the European meltdown is waning. Gold is selling off as the market rallies. We are nearing the 1180 trendline again. I have been thinking that they would tank Gold to add to the all clear in the European market and that may still be the case. Remember the trendline is at 1180 (GLD 115.75) and the reversal is at 1160 (GLD 114.13).

All the attention is on the stock market now. Gold is silently sneaking lower with little fanefare. Most Gold stocks have traded down to their 200 day average. The GDX (Gold Miners index) bounced off of its 200 day 2 days ago. The stocks usually lead. The 200 day on Gold is at 1147 which is GLD 112. A break of that average would tigger sell stops.

Mikey
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)