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CGTS FOR FRIDAY, 11 DECEMBER 2009

|Includes: Caterpillar Inc. (CAT), EEV, EPP, EWM, NKE, RXD, TMX
CLARK'S GATE TIMING SYSTEM ©
Friday 11 December
2009
 

“By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.”

    -- John Maynard Keynes



I came across this quote by Niall Ferguson, author of “The Ascent of Money” today: “if you want to understand our current predicament, history is a much better guide than economics.”

I would say that philosophy is an even better guide, because philosophy takes you to the blueprint. History takes you to the edifice itself. Economics takes you to the screw, nail, mortar, one of the details holding the edifice in place.  Economists focus on their specialty: monetary policy, trade, labor relations....but this is NOT the blueprint. It is an isolated piece of the structure.

The title of the book "The Creation and the Destruction of Value" written by Harald James and reviewed by John Mason for Seeking Alpha (seekingalpha.com/article/177662-book-rev...) seems to be approaching philosophy. Implicit in the creation is the destruction. We cannot have the Day unless we also take the Night as part of the equation. Once we accept this, then we prepare ourselves for the destruction phase, when all we've assembled with love and care (and with greed and murder and self-love) will disappear (objects disappear during the night, as light vanishes)...as 'value' destructs.

There is an inevitability to inflation and to deflation. Ok. We CANNOT have only the good side of life. We must also accept the shadow-side. Ok. We must use the shadow time (when the objects we love so dearly disintegrate and disappear) as it is supposed to be used: for rest, for reflection, for building the 'next' dream which we will BECOME when we wake again, when the daylight returns, and we return to objectivity.


We got a lot of buy signals today (see below).  This tells us that we will make another attempt at a new high in the markets.  A problem is that momentum (as meausred by our M5 momentum indicator) is generally flat or negative.  This means that the price is climbing a steep mountain slope.  We actually need a really good sell-off in order to clear the air, clear the books, re-scale value, and eliminate stocks/companies that are not going to make it through this economic depression.  Since the market is already badly overbought, it cannot easily go higher at the moment.  And it can't go lower, as long as Uncle Ben and the Rice Brigade will not allow it to go lower.

 



DAILY PORTFOLIO


Our daily portfolio is up 25%, with the first trade being on 6/29/09 -- so this is roughly a 50% annualized rate.  Note: we are also including the number of short trades in each portfolio and the percentage of bullish trades to show how overwhelming the long trades are.  This percentage should begin to change as time goes on. 

 
  DAILY PORTFOLIO   Active Active First Short % Long
% Gain 12/9/09   Profit Trades Cost Trade Trades Trades
20.65% M2F alt Trading System   $169,332 82 820000 7/27/09 15 82%
28.09% M2F ALT LT 2 Tr Syst   $199,434 71 710000 7/8/09 9 87%
25.12% M5 10 Trading System   $110,512 44 440000 6/29/09 6 86%
22.85% M5 Diff Simple Tr Syst   $132,506 58 580000 6/29/09 7 88%
9.30% M5/M5Avg Sum Plus New   $20,465 22 220000 9/5/09 2 91%
                 
22.82% Total   $632,249 277 $2,770,000      




DAILY BUY SIGNAL

We had a  lot of daily buy signals.  Not all of these are what we would like, since market momentum is negative or flat.  We're showing a few charts of those we like and those we have doubts about.

THURSDAY  
12/10/09    
M2F ALT    
^HSI 22102.75 LONG
JCI 26.76 LONG
SEA 13.02 LONG
SLM 11.3 LONG
TEVA 53.13 LONG
GDAXI 5709.02 LONG
EQR 31.51 LONG
ORCL 22.59 LONG
STD 16.55 LONG
EL 48.2 LONG
GE 15.61 LONG
TMX 17.98 LONG
SZK 42.78 SHORT
     
M2F ALT LT #2  
EEV 11.32 short
RXD 35.068 short
AORD 4652.1 LONG
FTSE 5244.37 long
AMTD 18.56 LONG
CAT 56.94 long
EPP 41.77 LONG
EWM 10.8 long
EWZ 77.02 LONG
JJG 39.888 long
MCD 61.05 LONG
NKE 62.7 long
SGG 65.72 LONG
SLAFX 52.73 long
UDN 28.25 LONG
XGCSX 8.86 long
     
M5 10    
EWZ 77.02 LONG
SGG 65.72 LONG
EL 48.2 LONG
SLM 11.3 LONG
DJI 10405.83 LONG
DRG 308.92 LONG
SSMI 6410.64 LONG
ADBE 35.8 LONG
BBY 43.21 LONG
BMY 25.54 LONG
CSCO 23.94 LONG
DE 52.4 LONG
HD 27.99 LONG
HLF 42.74 LONG
PEP 61.84 LONG
RHT 27.66 LONG
RS 41.65 LONG
STJ 37.9 LONG
TXN 25.94 LONG
RXD 35.068 SHORT
     
M5 D Simple    
None    
     
M5/M5Avg Sum Plus New    
None    





DAILY SELL SIGNAL

TMX, Telmex, is giving a trading sell signal.  This doesn't mean the move up is over.  This means this is a good time to take profits.







More information on this system can be found at

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

Disclosure: The author does not own issues mentioned in this article.

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

84 4 221 92210










Disclosure: The author does not own issues mentioned in this article.


Disclosure: Disclosure: The author does not own issues mentioned in this article.