"If there is anything that I can teach you about the stock market, it is to put the odds heavily in your favor before you open any stock position."
- Mitch King

The old saying, "Knowledge is Power" is so true in the stock market. Having the knowledge to make money in the stock market using a methodical and high probability way can create a lifestyle that few can only dream about.

The Intermediate Trading Strategyin this course is perfect for anyone working a full time job and doesn’t have time to monitor a screen all day. You can use the intermediate trading technique to put winning stocks in your IRA too as well as your regular stock brokerage account! Invest in yourself and acquire the knowledge to profit in the stock market for the rest of your life.

March 11, 2009 Wednesday Evening

That’s it, there is your short term bounce you should have taken profits into. The sector that really fell apart sooner than expected was the health sector stocks HUM, UNH, AET, and MGLN. The insurance sector, PRU, MET, HIG, and PFG also had a nice peak and pulled back. It isn’t surprising to see the market fall apart quickly and with the banking stocks, we are likely to see some pretty strong selling.

I mentioned on the video last night to avoid shorting the banking stocks and that no other trade ideas were likely to come from them but we have some good swing short ideas (days, not weeks) that are ready to open tomorrow. USB, US Bancorp looks very good to start opening a small short position and possibly add to that if it continues upward. It looks very likely to see it peak tomorrow and start heading down for a few days with a potential profit of 20%+ profit potential.

This is the fourth trade in the banking stocks but we just can’t (or I can’t) ignore the volatility and the opportunity for trading the profits that are in them. Again, when the market cycle changes into less volatility and a more stable environment, the intermediate term trades will work more reliably than they have (or haven’t). As you can see we are focusing on swing trades that last just a few days or up to a week and again, the intermediate term trade ideas aren’t lasting that long.

Oil peaked just below $49 two days ago and probably consolidates from here for a while. That is a term meaning a slight selling off or sideways movement from here.

Intermediate Trade Positions: New ideas: none, we are looking for short swing ideas for aggressive trader.

Swing Trades: New Ideas: USB, US Bancorp, looks ripe for a 20% potential profit on the short side from here. Open small position near open tomorrow. Note the green colored notes on the stock list below are other short ideas. These are short term swing trades lasting only days, the same as the last three trades we have done in this sector in the last 3 weeks. We were long, short, long, now short again. There should be more short ideas surface tomorrow a we are looking for more short swing ideas for aggressive trader for tomorrow; consider very small short positions as outlined in stock list below.

Day Traders/Intraday stock ideas: Should be outstanding intraday trading tomorrow. You are going to see big swings today. My suggestion is to let the stocks go down hard and look for a long bounce. That would be the high odds play. FSLR, HUM, UNH and continue to watch ICE, BLK, CME, POT, MON, MOS, AMZN, AAPL, FSLR, BIDU, USB, WFC, JPM and any high volume, high volatility stocks.

NOTES: REPEAT: Many of you have emailed me with questions about not having the $25,000 to do intraday trading. You can have 3 intraday trades in a 5 business day rolling period. You can have swing trades like we have been having the last 2 weeks and make a smaller amount of money, let’s say $10,000, to build up with swing trades.

Thoughts: Keep steady, calm, decisive, aggressive. Have no fear and no greed.

I am still expecting some sort of substantial rally in the stock market sometime this year mostly driven by the massive stimulus that has already been poured into the system plus the planned stimulus package being proposed now. Longer term though, in a couple years down the road, no doubt the taxpayer is going to have to pay for such the high debt amounts that the US government (and other countries) have taken on. So tax rates probably will rise in coming years, interest rates will very likely have to rise as inflation surfaces and likely the bear market resumes sometime down the road. But we don’t have to be stuck in a miserable cycle like most investors. With the techniques and approach to the market, we will still thrive.

If you have been uncomfortable shorting stocks, which most people are, learn to get used to it, this will be a useful tool in the coming years.

When I list several stocks from the same sector, like the housing industry for example, don’t short all of them unless you are well diversified and it represents a small percentage of your total stock account (in that same account).

REPEAT: Keep an eye out for biotechs; they are building momentum and often do well in January.

SWI (SWING): 2-7 days INT: Intermediate term position 8 days to several months. Open Price: price paid on opening long position or price sold on short position. Bold notes on table above represent changes from previous day.

Current positions are highlighted in yellow. Green colored lines are next probable positions to consider. Red, take action or watch closely.

Thoughts: Best odds only, be decisive, aggressive, mentally flexible, stay in position size, don’t overtrade and wait a little longer to buy and wait a little longer to sell. You will find that will make you more money on your trades. Trade what you see, not what you hope for. Intermediate and swing trades are really important to have trailing stop losses set.

Don’t trade unless the setup is there for you, then use the charts to tell you when the odds are heavily in your favor. Don’t force anything to work for you, let the setups develop and then take advantage of that. Be patient. Stay in position sizes without letting any intraday trade represent no more than 10-15% of your total account value. As you build your account, your position size percentage should get smaller and smaller to lower your risk.

Have a great day 

Mitch King

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