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, January 25, 2013

Here comes the Apple is dead articles

Here is what is being said about apple AFTER the stock has declined from 700 to 448.  Notice that when it was 700 the same people were saying 1000.

From CNBC:
Apple's drop wiped out roughly $50 billion in its market capitalization to $432 billion, leaving the company vulnerable to losing its status as the most valuable U.S. company to second place Exxon  Mobile at $417 billion. It's also lost some of its influence in the Nasdaq , CNBC's Seema Moody reports. At its high of $705 a share, Apple had accounted for about 20 percent of the Nasdaq 100, Moody said. Today, however, it accounts for just 13 percent of the Nasdaq.

Apple's disappointing results drew a round of price-target cuts from brokerages. At least 14 brokerages, including Barclays and D bank cut their price target on the stock by $142 on average.Morgan  removed the stock from its "best ideas" list.

And this one:

Apple 'A Broken Company': Jeff Gundlach
Apple's stock is headed for a "fair valuation" of $425 per share this quarter, DoubleLine CEO Jeff Gundlach says.
Apple stock could be headed to a level of $425 per share this quarter, DoubleLine CEO Jeff Gundlach said after the company reported disappointing earnings Wednesday.

And this one
Apple Now 'One-Dimensional': Steve Grasso
Apple has little more than the iPhone these days, Stuart Frankel's Steve Grasso says.
"I think this is really a broken company that is over-owned," he said
For the fiscal first quarter, it posted net income of $13.07 billion, or $13.81 a diluted share, compared to $13.06 billion, or $13.87 a share, a year earlier. This is the first time in years that Apple didn't post a double-digit earnings increase.
Gundlach also said that Apple stock remained "very, very much in the public's psyche," which would keep share prices artificially high.
He also took a shot at Apple's huge cash balance on hand.
"That doesn't exactly call for a huge multiple," he added.

The  banks want this stock now after selling it at 700.  The reason for the decline is out there and the bid was pulled along time ago.  Let's check on the price a year from now and see what they are saying. It closed at 448 today I'll take my chances at this price.  By the way it goes ex dividend on 2-7 at 2.65 a share. The yield is 2.35% and that is only a payout of 11.35%.  They have cash on hand of

Mikey

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