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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, January 16, 2013

Germany to bring home some Gold Reserves

The world's second-biggest holder of gold reserves, Germany, is planning to bring home some of its gold held in New York and Paris - a move that would mark a breakdown of trust between the world's major central banks, analysts said.

The Bundesbank, Germany's central bank, announced in a press release on Wednesday it plans to repatriate some of its gold holdings from the New York Federal Reserve and the Bank of France.
The release said the Bundesbank intends to move 300 tons of gold from New York to Frankfurt by 2020, plus a further 374 tons from Paris. By 2020, it expects to hold 50 percent of its reserves in its vaults in Frankfurt, with the remainder split between New York and London. None will remain in Paris.
"With this new storage plan, the Bundesbank is focusing on the two primary functions of the gold reserves: to build trust and confidence domestically and the ability to exchange gold for foreign currencies at gold trading centers abroad within a short space of time," the Bundesbank said.

The Bundesbank said the complete withdrawal of its holdings from France is because the adoption of the Euro means it is no longer reliant on Paris as a financial center in which to exchange gold for an international reserve currency.

Germany has almost 3,400 tons of gold, the world's second-largest holdings after the United States, valued at almost $177 billion at the end of December, according to the Bundesbank. It moved the bulk of its reserves abroad during the Cold War in case of an attack on West Germany by the Soviet Union.
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