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, October 29, 2010

Consumer sentiment declines ISM grew

U.S. consumer sentiment worsened more than expected in October, hitting its weakest level since November, with concern about the economy high leading into next week's election, a survey showed on Friday.
The Thomson Reuters/University of Michigan's final October reading on the overall index on consumer sentiment came in at 67.7, down from 68.2 in September and below the 68.0 median forecast among economists polled by Reuters.
"Residents of nearly all local areas expressed economic discontent. It would not be surprising for consumer confidence to rebound following the election; it would be surprising if those gains proved to be more than temporary," the survey's director, Richard Curtin, said in Friday's report.

Consumer spending typically accounts for about two-thirds of U.S. economic activity and is considered critical to the recovery.
The survey's barometer of current economic conditions declined to 76.6 in October from 79.6 in September. It was forecast by economists to come in at 73.5.

Business activity in the U.S. Midwest grew more than expected this month, a report showed Friday.

The Institute for Supply Management-Chicago business barometer unexpectedly rose to 60.6 in October. The reading was 60.4 in September, and economists had forecast an October reading of 58.0.
A reading above 50 indicates expansion in the regional economy.
The employment component of the index rose to 54.6. It was 53.4 in September. New orders rose to 65.0, from 61.4 last month.
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)