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CGTS DAILY TRADING SIGNALS. For Tuesday, 21 September 2010. It is Autumn. Buy Signals: LXRX, FXY, XES, QLTI, BKX, ETFC, KSU, XME, DRYS; Shortsell Signals: TNP, IGT.

|Includes:DRYS, ETFC, FXY, IGT, KSU, Lexicon Pharmaceuticals, Inc. (LXRX), QLTI, TNP, XES, XME
CLARK'S GATE TIMING SYSTEM
  FOR: 21 September 2010, Tuesday
- Autumn Equinox

CGTS VIEW, MARKET MOMENTUM -- AND NEW TRADES

Have to not be impressed by the continued rally.  0% interest rates are SUPPOSED to make the markets rally -- and markets are responding now with a bit of gusto.

Trading momentum (our indicator below) jumped from 40% to 49% Bullish.  80% and above are overbought readings.

89% of the issues I follow are trading in the Bullish Zone as opposed to the Bearish Zone.

This rally clearly has some more life in it.

We're watching the "F" and "G" Momentum Criteria below.  When "F" (especially) begins to deteriorate, we'll be at the end of the rally.  So far, 83% Bullish, which is quite positive for the markets at the moment.

I can't believe the stories I read today that markets are 'on pins and needles, awaiting action by the Fed'.  What is this all about?  Is the Fed going to start raising rates?  What are the chances of that?  The Fed has been DESPERATE to INFLATE for many months now.  Are they suddenly going to get religion?

CGTS PORTFOLIO

We haven't shown our CGTS Portfolio for some time.  This shows the 9-10 Trading Systems we are working with, and how they have performed since 6/19/10.  ST = Short-Term Trading Systems (3 such systems).  The other trading systems are more intermediate- and long-term.  We invest $10,000 per trade.

 
DAILY PORTFOLIO
 
 
Active
Active
% Gain
9/20/10
 
Profit
Trades
Cost
8.41%
M4 SPIKE *
ST
$37,843
45
450000
31.86%
M53 vs Avg Dif
 
$9,558
3
30000
4.27%
M2F ALT M4 2
ST
$2,134
5
50000
2.70%
M2F Diff Asp2+
 
$2,974
11
110000
0.21%
M5 3 Avg Diff New
ST
$64
3
30000
7.16%
M53Avg Sim New2
 
$7,155
10
100000
5.18%
M5 3 Avg +3
 
$4,144
8
80000
22.14%
M4 Spike LT
 
$11,070
5
50000
8.49%
M4 Spike LT 2
 
$37,372
44
440000
16.33%
M5 3 Test LT
 
$31,026
19
190000
6.15%
M5 3 ASP LT 2a
 
$55,333
90
900000
5.65%
M53 Visual New2
 
$4,518
8
80000
7.97%
M5/M5 What2?
 
$37,467
47
470000
40.21%
M4 ASP REV TR *
 
$16,085
4
40000
2.22%
CURRENCY
 
$8,197
37
370000
 
*subsumed into Spike
 
 
 
 
7.53%
Since 6/19/10
 
$215,406
286
$2,860,000
 
We have new trades for today.  See some charts below.  TNP is giving a shortsell signal.  TNP is Tsakos Energy Navigation -- it has been a short trade since May 2009 and continues to be so.  LXRX is Lexicon Pharmaceutical -- and it is giving a buy signal in two of our trading system.

MON
 
 
 
 
20-Sep
PRICE
Short/Long
SHARES
SYSTEM
TNP
13.38
S
-747
Spike
LXRX
1.442
L
6935
M2F M42
LXRX
1.442
L
6935
M53avg diff new
FXY
115.4
L
87
M53avg diff new
AHCHY.PK
21.4
L
467
M53avg diff new
XES
28.9
L
346
M2F Diff Asp2
QLTI
6.24
L
1603
M2F Diff Asp2
BKX
47.9
L
209
M2F Diff Asp2
ETFC
14.36
L
696
M2F Diff Asp2
KSU
38.52
L
260
M2F Diff Asp2
XME
52.22
L
191
M2F Diff Asp2
DRYS
4.12
L
2427
M53Avg +3
IGT
15.25
S
-656
M53Avg +3
SLGLF.ob
0.005
S
-2000000
M53 ASP LT2
 



MARKET MOMENTUM
TUES
WED
THURS
FRI
MON
 SUMMARY
14-Sep
15-Sep
16-Sep
17-Sep
20-Sep
GSPC - S&P 500 Index
1121.1
1125.07
1124.66
1125.59
1142.71
 
 
 
 
 
 
A. Trading Mom +
218
203
175
215
311
Trading Mom -
44
46
49
25
15
Bull %
49%
46%
40%
49%
70%
B. Mom Trend +
291
293
294
394
397
Mom Trend -
70
69
68
47
45
Bull %
66%
66%
67%
89%
90%
C. Advance/Decline +
243
225
194
237
340
Advance/Decline -
118
136
168
205
102
Bull %
55%
51%
44%
54%
77%
D. Long Trade
170
171
138
178
257
Short Trade
35
35
36
15
8
Bull %
38%
35%
35%
35%
35%
E. IT Trend +
241
251
253
342
345
IT Trend -
119
109
107
98
95
Bull %
55%
57%
57%
77%
78%
F. M5 3 M5 Avg Dif +
288
273
272
346
366
M5 3 M5 avg Dif -
73
88
89
95
75
Bull %
65%
62%
62%
78%
83%
G. M5 3/M5 Avg Diff Top
 
 
 
17
28
M5 3/M5 Avg Diff Bottom
 
 
 
5
6
Bull %
 
 
 
77%
82%
Avg of avgs
55%
53%
51%
64%
72%
 
 
 
 
 
 
A. "Trading Momentum" = M4 ASP +1 vs -1; +1 bullish and -1 bearish.
 
 
 
B. "Momentum Trend" = M4 ASP (+1 - 0) vs (0 - (-)1); in BUY ZONE or SELL ZONE.
 
C. "Advance/Decline" = M4 ASP tick up vs tick down = mosr recent move up or down;
 
D. "Long Trade/Short Trade" = M4 ASP +1/ Int-Trend positive vs M4 ASP -1/Int-Trend negative;
 
E. "IT TREND" = Int-Trend positive vs negative. Slowest to turn. Most important long-term measure.
F. "M5 3 vs M5 3 Average Differential" = Above zero bullish; below zero bearish. Perhaps best indicator for intermediate term moves.
G. 'M5 3 vs M5 3 Average Diffential' = Those registering above +100 (top) vs those registering below -100 (bottom).
 
 
 
 
 
 
 
 
 
 
 
 
 

INDEX PICTURES

DJIA, Dow Jones Industrials: taking out old resistance.  This is a positive.  We'll begin to worry when M5 Average (black line, Top Pane) crosses M5 Momentum (brown line, Top Pane) and turns down.  Still some room to run.



GSPC, S&P 500 Index: we said yesterday that the M5 Momentum Indicator (brown line, Top Pane) was bending back up, a very positive sign.  Well, it did bend back up; and now GSPC is taking our resistance, establishing a new high.  Still more room on the upside.



N225, Nikkei, Japan Index.  Not much follow-up buying in Japan today.  There is still room on the upside.  But note how M5 Average (black line, Top Pane) is meeting M5 Momentum (brown line, Top Pane).  This generally makes it harder for prices to climb -- indicating an impasse is being reached.  Overhead resistance is waiting for the Nikkei.



XCI, Computer Index: Has been a bit of a laggard, but is now trying to catch up.  Note the large gap between M5 Momentum Indicator (brown line) and M5 Average (black line) in the Top Pane.  This suggests more buying is possible, and even likely.



VIX, CBOE Volatility Index.  Keep an eye on the VIX.  When it bottoms, stocks usually tank.  And the VIX is trying to bottom.  Note how the M5/M5 Average Differential (Bottom Pane, black line) is turning up.  If it goes through zero, we could be ready for selling again.



TRADING SIGNALS

A lot of sell signals today, and many bank stocks seems to be running out of gas.



BKX, Bank Index.  Yesterday we were selling all the banks -- we have anotehr bank to see today (see below).  Today we're covering a short-sell positon in the Banking Index and going long.  This may be a short trade, as M5 is already in the overbought region -- although it is ready to tick up again.  M4 Sum Plus is in positive positive also (Middle Pane, black line).



CSUN, China Sunergy. M5/M5 Average Differential (Bottom Pane, black line), is turning down pretty hard.  Take profits.



DRYS, Dry Ships: looks like it's ready to rally. Look at M5 Momentum (brown line, Top Pane) coiling in a bottom, and getting ready to reach up.



ETFC, E-Trade Financial.  Buy Signal.  Trading System M2F Diff ASP 2+.



IES.DE, Intesa San Paolo: M4 Spike Trading System: sell, take profits.



LXRX, Lexicon Pharmaceuticals.  M2F ALT M4 2 trading system.  Buy Signal.   A lot of negative seniment but not much selling, in fact, since early August.



QLTI, QLT Inc.  M2F Diff ASP 2+ Trading System: buy signal.  Don't expect this signal to last long.  M5 Average (black line, Top Pane) is overbought and declining -- BUT stock has already given up a good amount of ground.  This system is apprently predicting an oversold rally here.



STD, Banco Santander, Spain.  M4 Spike System: sell, take profits.



XES, Spider Oil and Gas Equipment ETF.  M2F Diff ASP 2+ System.  When one looks at first at this chart, the impression is that XES is nearing a top.  But M5 3 Momentum (brown line, TOP PANE) looks to be preparing to bolt upward again.





More information on the CGTS systems can be found at:

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

 

MICHAEL J CLARK
Clark's Gate Timing System
Hanoi, Vietnam

84 4 221 92210




Disclosure: No positions to disclose.

Disclosure: No positions to disclose.

Disclosure: No positions to disclose
Stocks: LXRX, TNP, FXY, XES, QLTI, ETFC, KSU, XME, DRYS, IGT