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CGTS DAILY FOR FRIDAY 4 SEPTEMBER 2009: Selling to continue?

Clark's Gate Timing System ©

Friday 4 September 2009


Index Review

Are we at a major top in the markets?  Too early to tell.  Fundamentally, it seems so.  Technically, it's not certain. 

The table below shows that we are long only AORD (Australia), HUI (Gold), KS11 (Korea), TWII (Taiwan), XAU (Gold), Gold; and we are short the U.S. Dollar.


DAILY INDEXES      
3-Sep BIAS CURRENT TRADE  
^AORD_D + neutral long All Ordinaries Australian Index
^BKX_D - neutral out Banking Index
^BVSP_D - neutral out BOLIVIAN INDEX
^DJI_D - neutral out DOW JONES INDUSTRIAL AVERAGE
^DJT_D - neutral out DOW JONES INDUSTRIAL AVERAGE
^DRG_D - neutral out DOW JONES INDUSTRIAL AVERAGE
^FCHI_D - - out CAC French Index
^FTSE_D - - out FTSE Daily Index
^GDAXI_D - - out DAX German Index Daily
^GSPC_D - neutral out S&P 500 Index
^HGX_D - - out Philadelphia Housing Sector Index Daily
^HSI_D - neutral out HANG SENG INDEX HONG KONG
^HUI_D + + long Gold Stock Index Daily
^KS11_D + neutral long Kospi South Korean Index
^N225_D - - out Nikei Japan Index
^NDX_D - neutral out Nasdaq Index Daily
^OEX_D - neutral out S&P 100 Index
^RUT_D - neutral out Russell SMall Cap Index Daily
^SMSI_D - - out Madrid General Index Daily
^SOXX_D - neutral out Phildelphia Semiconductor Index
^SSEC_D - neutral out Shanghai Composite
^SSMI_D - - out Swiss Index Daily
^TWII_D + + long TAIWAN WEIGHTED INDEX
^TYX_D - - out 30 YEAR TREASURY YIELD
^UTY_D - neutral out Utility Index
^VIX_D + neutral out CRB Volatility Index Daily
^XAU_D + + long Philadelphia Gold and Silver Index Daily
^XCI_D - neutral out Amex Computer Index Daily
^XOI_D - neutral out Oil Stock Index
Oil - - out Oil
Gold + + long Gold
US Dollar - neutral short US Dollar

We should a couple charts that might be interesting to traders: NDX (Nasdaq): Our M4 Sum Plus indicator has given a sell signal but the long trends are still positive; and the short-term momentum indicators are trying to bottom.  Support is at 1563.73.  The index closed Thursday at 1605.98.

The DJIA is a similar picture: support is at 9116.52.  The key for both of these indexes is whether or not the M4 Sum Plus selling strength continues to dominate the chart (remember, one-day spikes up or down are ignored).




Our best short-term trading system (M5 10) is giving a buy signal on DJI.  We think it might be a bit early to get back in.  In the bottom pane of the chart below, you can see the M5 Sum Plus momentum indicator is down and is being followed down by its companion indicator, M5 M5 averaage Diff Sum Plus indicator.  Our best guess is that there will be a one-day rally followed by another pull-back, with selling continuing to lower levels.




More information on this system can be found at

 

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

 

Portfolio of current ‘Seeking Alpha” trades at

 

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

 

 

MJ Clark's Gate Timing System

Hanoi, Vietnam

84 4 221 92210