Michael Clark's  Instablog

Clark's Gate Timing System
Wednesday 7 October 2009
 

 

There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crises should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.

 - Ludwig von Mises.

 We're getting the bounce we expected.  We'll have to watch how the indexes move to see if this short-term rally will have any legs.  The S&P 500 chart below shows an index that needs to rally past overhead resistance at 1080.15 to re-establish an upward bias.  A hesitation, and another decline, would indicate a tired bull.

INDEX VIEW

KEY: COLUMN 1: SYMBOL OF INDEX/ETF; COLUMN 2: M2F ALT = short-term momentum: above 70 = overbought; below 30 = oversold; COLUMN 3: 'TRADE" = current position using M4 Sum Plus Trade System.  COLUMN 4: "TREND" = short-term trend DIRECTION: above 0 is positive; below 0 is negative.  COLUMN 5: "M4 SP+" = issues with at least 2 consecutive days of positive M4 Sum Plus will register a 1.  COLUMN 6: 'M4 SP -" = issues with at least 2 consecutive days of negative M4 Sum Plus will register a 1.   COLUMN 7: "INT MOM" = M5 Average Sum Plus, which is an intermediate-term momentum indicator: 1 is positive; -1 is negative.  COLUMN 8: "LTERM MOM" = MA 40 Sum Plus, which is a long-term momentum indicator: +1 is positive; -1 is negative.  COLUMN 9: Name of Index.
 

TODAY'S NEW TRADES
We continue to close positions with piece-meal gains and losses (more winners than losers).  And we continue to add to our long positions.  The long-term trends are still positive; and although we're leary of this market, we continue to follow our system because our system has no emotions.  A broad topping of the market still provides us with potential for gains on long trades -- although the best results for the long side of the market are probably over. 

We have some pictures below.  We like Sony (SNE),  Proctor and Gamble (PG) and Microsoft (MSFT) today.  We liked MKL and GAZ yesterday -- we are going to keep posting updates on these two to see how we're doing with those trades.  And we are posting updates on a couple of Ultrashorts we entered (short) in September -- let's see how these trades are doing.

M2F ALT TRADE

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

A draft of the book Turn Out the Lights can be found at the website below.  This book is a description of the metaphysical causes of the economic cycles of expansion (Day) and contraction (Night).

www.hoalantrangallery.com/Turnoutlights.htm

Michael J. Clark's Gate Timing System
Hanoi, Vietnam

84 4 221 92210