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CGTS COMMODITY CORNER: Short US Dollar vs Canadian Dollar, Indian Rupee, Brazilian Real, New Zealand Dollar

CGTS DAILY TRADING SIGNALS
FOR FRIDAY 7/18/11


CGTS CURRENCY CORNER: US Dollar going back down again.  Will it lift commodities and stocks this time?

Yesterday we wrote that the Brazilian Real was ready to run up.  Big deal, right?

Today we are writing, based on our current signals, that the US Dollar is heading lower.  Don't need to be much of a sage to say this.  It's sort of common sense, isn't it?  What, with the Congress seemingly deadlocked over the issues of debt, spending cuts, tax increases.  'Seemingly' I write.  The drama in Washington is all a game-show playing out, each side understanding that the longer they hold out, the more they get.  Is there ANY chance the sides won't come to some compromise extention of the debt ceiling?  No.  No chance.

But both sides are going to try to make their opposite side out to be irresponsible villains.  And both sides are going to pretend that they chose the higher path of statesmanship, for the good of the country.  It's a sham drama.  It's not a sham issue, however.  Both sides are standing their ground, the Republicans defending the rich and villifying the teachers and the state-workers who caused America's near-bankruptcy, 'entitlement' programs, such a food-stamps, social security, welfare, health care insurance.  The Democrats, on the other hand, are insiting they have the right to spend money they don't have -- democrats have always been the women in the house, eager to spend to 'fix' problems -- and insisting the rich also pay for the New Austerity, not just ordinary Americans -- who have also seem trillions pilfered from the treasury by the banks with government welfare, which is the real reason American is reeling toward default.

Middle ground?  Cut spending; raise taxes on the rich; and cut loopholes in the tax laws that enable buisness to make billions and pay no taxes.  Seems pretty clear to me.

US Dollar is giving shortsale signals against the Canadian Dollar, against the Indian Rupee, against the Brazilian Real, and against the New Zealand Dollar.

In the past, this has meant an appreciation of stocks and commodities.  This paradigm seems broken now however -- the Bernanke put -- since all bets on a recovering global economy are off if Europe, America and Japan are all on the verge of massive currency devaluation as a hope of camouflaging their default.  A currency devaluation IS a default, in fact.  A stealth default.

Here are today's signals:

         
7/28/11 CURRENCIES    
Thursday        
USDCAD M4 SPIKE 21 2 NEW CUR 0.9515 SHORT  
USDINR M4 SPIKE 21 2 NEW CUR 44.135 SHORT  
CNYBRL M4 SPIKE 21 2 NEW CUR 0.2432 SHORT  
USDBRL M4 SPIKE 21 2 NEW CUR 1.5669 SHORT  
USDBRL M4 Accum 14 00 orig2 cur 1.5669 SHORT  
USDCAD M4 CLOSE ASP TR 4 CUR 0.9515 SHORT  
CNYBRL M4 CLOSE ASP TR 4 CUR 0.2432 SHORT  
USDBRL M4 CLOSE ASP TR 4 CUR 1.5669 SHORT  
GBPINR M2F ALT 14% 7/11 72.0987 LONG  
NZDUSD CM Close v Mdpnt Rev 0.8668 LONG  
         
         
CLOSED POSITIONS M4 ACCUM 21 00 ORIG 2 TRADING SYSTEM
ISSUE   PRICE POSITION DATE
         
NONE M4 Accum 21 00 orig2     
BOUGHT M4 Accum 21 00 orig2     
         
  PROFIT: 100-1 LEVERAGE 0    
         







How are our different trading systems doing? (Updated Weekly)

  CURRENCY TRADING        
669.47%  (AT 100:1 LEVERAGE) LEVERAGE   Active Active
% Gain 7/25/11 PROFIT Profit Trades Cost
           
310.39% M4 SPIKE 21 2 NEW CUR $620,788.00 $6,207.88 20 $200,000.00
1255.85% M4 REV 3 CUR $1,507,018.00 $15,070.18 12 $120,000.00
420.79% M4 CLOSE ASP TR 4 CUR $420,793.00 $4,207.93 10 $100,000.00
359.88% M2F ALT 14% CUR $683,775.00 $6,837.75 19 $190,000.00
1924.63% M2F ALT Rev Cur2 $384,926.00 $3,849.26 2 $20,000.00
475.84% M4 Accum 21 00 orig2 what $47,584.00 $475.84 1 $10,000.00
1125.75% M4 Accum 21 00 orig2 cur $562,876.00 $5,628.76 5 $50,000.00
587.33% M4 Accum 14 00 orig2 cur $469,867.00 $4,698.67 8 $80,000.00
608844.00% M4 Accum 14 00 CUR (FIRST) $608,844.00 $6,088.44 0.01 $100.00
127.06% M4 Accum 14 00 CUR (CONT) $50,824.00 $508.24 4 $40,000.00
742.87% CM Close vs Midpoint  $668,579.00 $6,685.79 9 $90,000.00
0.00% CM Close vs Midpoint REV $0.00 $0.00 0 $0.00
0.00% CM Close vs Midpoint REV FX $0.00 $0.00 0 $0.00
           
669.47% begun: $6,025,874.00 $60,258.74 90.01 $900,100.00



More information on the CGTS systems can be found at:
home.mindspring.com/~mclark7/CGTS09.htm
 
MICHAEL J CLARK
Clark's Gate Timing System
Hanoi, Vietnam

cgts@mindspring.com