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

Thursday, January 24, 2013

Apple takes out ledge clears stops for rally

 Apple gaped lower today below its 2 month ledge at 500 closing down 65.63 points to 48.37 on 48.45 million shares.  I want to take you back to the day before its earnings.  IBM and Google had reported better than expected earnings and Apple closed up 7 points prior to its earnings release.  This made it a very easy buy because it looked like the techs were outperforming.  It is never a good idea to do the obvious with a stock in the limelight.  The business of stocks has no mercy.   That being said the stops and the longs are out of the market and alot of shares have changed hands. This sets the stage for a great rally in the stock.  I would not be a in the next week but on a successful week to week retest I would look to be a buyer.
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)