Michael Clark's  Instablog

CLARK'S GATE TRADING SYSTEM
Daily Trade: for Tuesday 11 August 2009
Short-Term Trading Emphasis.
CGTS  Daily Trading is dedicated to short-term gains and accuracy of trading.  CGTS Weekly Trading is dedicated to longer-term trading and investing with (we hope) similar accuracy.


We have a slough of sell signals for our M2F ALT L-Term (relatively long-term -- not a trading indicator) Trading System.  What does it mean?  We're not sure.  But a lot of quality companies have stocks turning down, losing momentum -- including the Shanghai Index, which hasn't looked back for a long time.  SSEC has broken the support of its short-term trend and is also showing a momentum break-down (bottom pane).  The sell signal is given when the M2F Alt Sum Plus (second pane) breaks below zero.

We are expecting a market pull-back; and this may be the first evidence that the pull-back is beginning to happen.

Below are some pictures to judge by.  In all these charts, we expect more than just a short-term pullback IF the M5 Average Sum is below zero (bottom pane in the charts):

RIMM: momentum turning back down.  This one looks negative to me.
BBL: at least a trading top.  Not as bad a picture as RIMM, although the Momentum (M5 Avg Sum) is ticking down.  We'll watch to see if it stays down.
COP: trading sell.
MSFT: negative picture.  I would not want to be holding this long-term.
ECH: seems to be making a long-term top.
Ford: Trading top.  You have to wonder where the demand is going to come from once Washington stop subsidizing car purchases.
MKL: trend down; momentum down.
SAP: trading sell.  But M5 Average is now above M5, which is where it almost always is at a market top.
TXN: trading sell and more.  Momentum is sinking and M5 Avg Sum (Momentum) has ticked down.
UDN: The Bearish US Dollar ETF has lost momentum and looks to be making a top.  This is bearish for stocks (recently at least)  If the dollar rises, the commodities will sink.
SGCSX (Commodities Fund): trading sell.








More information on this system can be found at

www.home.mindspring.com/~mclark7/CGTS09.htm


Those interested in reading a draft of 'Turn Out the Lights', my description of the metaphysical causes of the financial collapse, can find it at:

www.hoalantrangallery.com/Turnoutlights.htm


 

Michael J. Clark
Clark's Gate Timing System
Hanoi, Vietnam
84 4 221 92210

The author owns none of the issues mentioned in this letter.