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CGTS WEEKEND EDITION FOR 28 AUGUST 2009

|Includes:AIG, ECH, EDU, GG, HURN, INTC, PCLN, PEIX, SLM Corporation (SLM), UUP

CGTS WEEKEND EDITION 
28 AUGUST 2009

There is nothing in the weekly charts to suggest that this rally is losing steam.  We feel the rally is not confirmed by fundamentals in the economy -- but it is technically not weakening (except in China). SOXX (Semiconductor Index) seemed to be breaking down, but rallied this week to restructure its technicals to look more positive.

Our weekly portfolio continues to be up about 38%.  We have stopped getting a lot of buy signals as our system depends upon reversals to oversold levels to generate buy signals.  This market is being kept from falling -- volume indicates not by general investor enthusiasm -- but by some black fog named Ben Bernanke.  Now that is the kind of leadership we've been neeeding for 200 years, the kind that does not allow a market to fail.  Helicopter Ben is working on a new nickname: 'Dirigible Ben'.  Well, we all know how that movie ends.


% Gain Weekly Trades Profit Active Active First
  8/28/09     Trades Cost Trade
             
80.36% M5 (7) 2   $96,432 12 120000 1/9/09
196.24% M5 (10) 2   $98,120 5 50000 3/6/09
2.07% M2F alt Trade   $415 2 20000 8/14/09
7.05% M2F alt LT   $2,820 4 40000 7/9/09
11.28% Momentum   $49,628 44 440000 6/26/09
13.54% M4 Sum Plus   $63,620 47 470000 7/17/09
71.39% M4 Plus LT   $342,685 48 480000 2/20/09
34.21% MA5 MA 40 LT   $116,314 34 340000 3/20/09
16.41% M4 Sum Plus Rev   $4,923 3 30000 8/21/09
0.01% M4 Sum Plus Rev 2   $1 1 10000 8/28/09
38.75% Total   $774,957 200 $2,000,000  
Click to enlarge

In this kind of market it makes no sense to let one's emotions get involved with the big picture.  There are many reasons this market might crash -- but there is also the chance it will just continue to go up as if impelled by the magic of anti-gravity.  It's best to follow the system, which has no emotion attached to it.

MOMENTUM

We've changed our momentum leaders (below) to indicate M5 leaders overall and M5  leaders over the last 3 weeks -- both the 30 strongest and the 30 weakest.  This is a kind of relative strength indicator, showing which issues have the highest or lowest momentum.

Example: EDU is in the top 30 but is also in the bottom 30 over the last 3 weeks, which is what we would expect with the Chinese market showing weakness.



Top 30 Momentum M5 Leaders (1-30)
   
MRK Merck Pharmaceuticals Weekly
PCLN PRICELINE
TEVA Teva Labs
SGINX DWS GNMA S. FUND
EMC EMC Corp
HAL HALIBURTON
ECH I-SHARES MSCI CHILEAN INDEX
AMSC AMERICAN SUPERCONDUCTOR
BWLD BUFFALO WILD WINGS
SGP Schering Plough Weekly
RHT RED HAT INC.
RGR STURM RUGER INC.
ORCL Oracle Inc.
AAPL Apple Computer
JPM JP Morgan Chase
SBUX Starbucks
F Ford Weekly
EDU NEW ORIENTAL EDUCATION & TECH GROUP
KUSMX DWS GOVERNMENT SECURITIES
DHI DR Horton Inc.
SSTGX DWS GLOBAL BOND FUND
UNH United Healthcare
IBM International Business Machines
HD Home Depot
BAC Bank of America Weekly
CA Computer Associates Inc
IAU IShares Comex Gold Trust
BLK BLACKROCK
EOC EMPRESSA ELECTRICAL S.A.
HPQ Hewlett-Packard
Click to enlarge

Top 30 Momentum 3-week Differential
   
HURN HURON CONSULTING
MRK Merck Pharmaceuticals Weekly
HAL HALIBURTON
PCLN PRICELINE
TMX Mexico Telecom
GES GUESS INC
WMT Wal-Mart Stores
RGR STURM RUGER INC.
UTX United Technologies
MCD McDonald's
HOV Hovnanian Enterprises
SGINX DWS GNMA S. FUND
BAC Bank of America Weekly
PFE Pfizer
BMY Bristol Meyers Squibb
^FTSE FTSE 100 London Index
SJPNX Scudder Japan Fund
INTC Intel
MSFT Microsoft
BA Boeing
BJS BJ Services
FNM Fannie Mae
CA Computer Associates Inc
^DRG Amex Pharmaceutical Index
HPQ Hewlett-Packard
SCHLX DWS HEALTH CARE FUND
UNH United Healthcare
^FCHI CAC Paris Index
SGP Schering Plough Weekly
^SMSI Madrid General Index
Click to enlarge



Bottom 30 Momentum M5 Trailers (30-1)
   
MGM MGM MIRAGE
FXM Mexican Peso ETF
TWX Time Warner Weekly
BHI BAKER HUGHES INC
FMCN FOCUS MEDIA HOLDING GROUP
WMT Wal-Mart Stores
GE General Electric
HMY Harmony Gold Mining
XOM Exxon Mobile
C Citigroup
MCD McDonald's
COP Conoco Philips Inc
PNC PNC Financial Svc Weekly
GMGMQ.PK General Motors
ERTS Electronic Arts
DRYS Dry Ships Weekly
FST FOREST OIL CORP
ELY Callahan Golf
PG Procter & Gamble
FSLR FIRST SOLAR
UUP POWERSHARES DB US DOLLAR BULLISH
^VIX CBOE Volatility Index
DOG Short DOW 30
MYY Short Midcap Index ETF
SH Short SP 500 ETF
PSQ Short QQQ Index ETF
DXD Short Dow Index ETF
QID Short Nasdaq Index ETF
HURN HURON CONSULTING
TBT Ultrashort T-Bond 20+ Year ETF
Click to enlarge



Bottom 30 M5 3-week differential
   
PEP Pepsi
MMM Minn. Mining & Manufacturing
^TWII TSEC WEIGHTED TAIWAN INDEX
HK PETROHAWK ENERGY
UUP POWERSHARES DB US DOLLAR BULLISH
AMSC AMERICAN SUPERCONDUCTOR
^HSI HANG SENG INDEX
DXD Short Dow Index ETF
HLF HERBALLIFE CORP
^HUI Gold Stock Index
NEM Newmont Mining
IAU IShares Comex Gold Trust
FXB British Pound ETF
GG Goldcorp
DOG Short DOW 30
DWSN DAWSON GEOPHYSICAL COMPANY
CSUN China Sunergy Weekly
BBY Best Buy Inc.
NKE Nike Inc.
ACH ALUMINUM COMPANY OF CHINA
^SSEC Shanghai Index
FSLR FIRST SOLAR
EDU NEW ORIENTAL EDUCATION & TECH GROUP
F Ford Weekly
AMGN Amgen Corp
EOC EMPRESSA ELECTRICAL S.A.
TEVA Teva Labs
^TYX 30 YEAR TREASURY BOND
ECH I-SHARES MSCI CHILEAN INDEX
TBT Ultrashort T-Bond 20+ Year ETF
Click to enlarge




NEW TRADES FOR THIS WEEK      
8/28/09        
         
M5 7 Out @ In @ Gain Date In
sell PCLN 156.47 116.08 34.79% 07/17/09
  In @ Position SHARES  
TWII 6809.86 ent long 1  
GG 37.08 ent long 270  
M5 10 In @ Position SHARES  
ECH 45.25 ent long 221  
M2F alt trade        
NONE        
Momentum In @ Position SHARES  
HURN 18.93 ent long 528  
INTC 20.25 ent long 494  
M2F alt LT 2        
NONE        
M4 Sum Plus Rev        
NONE        
M4 Sum Plus Rev 2 In @ Position SHARES  
TWII 6809.86 ent long 1  
SLM 8.97 ent long 1115  
UUP 23.28 ent short -430  
SLGLF 0.017 ent short -588235  
M4 sum In @ Position SHARES  
TWII 6809.86 ent long 1  
SLM 8.97 ent long 1115  
M4 Sum Plus LT In @ Position SHARES  
AIG 50.23 ENT LONG 199  
mA 5/MA40 LT In @ Position SHARES  
PEIX 0.447 ent long 22371  
         
Click to enlarge

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Everyone, have a good weekend.

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

Disclosure: the author personally owns none of the issues mentioned in this article.



Stocks: SLM, EDU, PEIX, UUP, AIG, PCLN, GG, ECH, HURN, INTC