Nov. 08, 2016 11:55 PM ET2 Comments
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Long/Short Equity, Special Situations, Currencies

Contributor Since 2009

Michael J. Clark was born and raised in Sinclair, Wyoming. He is a poet, novelist, artist, historian, and market analyst. He began investing in 1985. He read ˜The Technical Analysis of Stock Trends" by Edwards and Magee and was hooked. From 1985-1987 he made astonishing gains in the stock market; and then stocks collapsed in 1987. Since then he has been attempting to 'solve the stock market', with many failures and some successes. The system he developed, called CGTS, Clark's Gate Timining System, is algorithm-based. What this fancy word means is that he proposes a series of necessary steps based on technical analysis propositions, which, when met, trigger trading signals. His four main trading systems are up a combined 31% for 2015. From his website: INVESTMENT PHILOSOPHY Now that QE is supposedly ending, markets are already becoming more tradable, with opportunities to make money on both long and short trades at the same time. QE tended to make all boats rise, except precious metals. This made it more difficult to play the short side of the markets. Now, both sides seem to be more accessible to successful trades. This will also be more of a challenge for investors. The FED will have to eventually abandon the markets to their own destinies, and stop spending trillions to protect investors AND corporations from their mistakes. As this begins to happen (I am not sure it has happened yet), informed advice will become even more necessary for investors. Rules of Investment Rule #1: Never go against the trend. The majority is often wrong; but the minority is often wrong also. The sticky issue with this advice is at transition points, at which a Bull Market turns into a Bear Market or vice-versa. Big Money often anticipates and/or causes this transition. So pay attention to what Big Money is really doing, not what they say they are doing. Rule #2: You don’t need a broker who makes his living off of your money. Most brokerage firms buy a position in a stock quietly and slowly. When the stock has appreciated significantly they add the stock to their buy recommendations. Then they begin selling their position while they are encouraging their clients to buy the stock. Most firms never issue sell recommendations. If they do, beware: they are probably trying to buy your stock after a huge sell-off. Rule #3: Watch your own emotions because they are often signaling something. When fear turns to greed and visions of unlimited wealth, we are probably near a top in a trade and we should get ready to sell. When hope and denial turn to fear and visions of an unlimited loss, we are probably approaching a bottom in a trade. (See Rule #1 however.) Rule #4: Trade with a system to complement your gut reactions. Follow the system no matter what, even if it means taking a loss. Don’t get lazy with your money and sink into denial. Use a system to help you refrain from 'playing a hunch'. Rule #5: HEDGE YOUR PORTFOLIO AGAINST LOSSES. How does one do this? By having a balanced portfolio of long and short positions. But have a system that signals both long and short positions, and keep your portfolio balanced around 50% long and 50% short. This may seem to contradict Rule #1. It does not. When something is in a long trend, something else is in a short trend. Find what is long and what is short. If stocks are long, gold or oil may be short. Use ETFs and options to help establish this portfolio balance. Our system gives trading signals every day for both long and short positions. More information on CGTS is available at: His fine arts portfolio can be found at the following address: His writing portfolio can be found at: Those interested in his book "Turn Out the Lights", a description of the metaphysical causes of the 2008 financial meltdown, can access the draft at: Michael Clark has retired after working 30 years in academia, relocated to Hanoi, Vietnam for six years, and has returned to America in 2014.



Nov 08 11:50 PM (Updated on Nov 09 12:03 AM)•BRZUComment!

Disclosure: I am/we are long GLD.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Is this BREXIT all over again? How so? TRUMP and his followers are apparently doing much better in this election than most people expected. TRUMP and his followers are saying NO to Globalism.

Is this NO going to be loud enough to shake the earth? What about the stock markets? It certainly is possible.

The last two days have been positive. Our charts look good for a rally. But the election might intrude.

Our BAROMETER has not been especially accurate during this last two months. It looks like it has bottomed -- and we expect a rally from here.

We re-worked our DASHBOARD to include more information. Trends are turning back up. So far our PROP1 has proven itself to be impressive. PROP1 and PROP2 suggested this selloff -- but also claimed it was NOT a crash. It has not (yet) been a crash. So far the PROPS are proving themselves to be very useful.

Here's our report for today:

We should mention our change in our SHOCK TRADE criteria. We now require our 2 moving parts to generate a long trade to be 1) oversold EMV (<0); AND 2) PROP to equal -7, an absolute bottom, rather than simply >= -7. For short trades we require an overbought EMV (>0) AND a PROP equal -13.

11/8/16 Column1 Column2 Column3 Column4 Column5 Column6
SPEAR CHANGE            
LBJ 121.582 23 107.826 * Latin America Stocks Bullish ETF 3x    
BRZU 46.15 5 41.91 * Brazil Stocks Bullish ETF 3x (NYSE:O)    
NILE 40.575 9 35.267 Blue Nile    
^VIX 18.42 -1 17.865 CRB Volatility Index Daily    
BCRX 4.68 3 4.135 BioCryst Pharmaceuticals    
LABU 31.25 -13 2.152 * Biotech Bull 3x    
ALNY 37.63 -9 2.04 Alnylam Pharma    
DUST 40.05 -1 1.85 * Gold Miners Bearish ETF 3x    
JDST 28.8 -19 1.73 * Junior Gold Miners Bearish ETF 3x    
THC 20.3 -19 0.913 Tenet Healthcare    
FOLD 7.88 3 0.673 Amicus Therapeutics    
IMMR 8.83 5 0.598 Immersion Robotics    
HDP 8.34 -17 0.577 Hortonworks    
ELY 11.49 3 0.553 Calahan Golf    
AMSC 7.37 -13 0.238 American Superconductor    
KERX 4.8 -19 0.21 Keryx Biopharm    
MTL 4.93 -1 0.188 Mechel Open Joint Stock Company    
DRYS 4.606 -25 0.167 Dry Ships Daily    
TNK 2.175 -25 0.049 Teekay Tankers Ltd.    
AXPW 0.014 5 0.017 AXION    
LODE 0.232 -19 -0.01 Comstock/Goldspring Mining    
CDXS 4.525 -5 -0.12 Codexis Inc    
NUGT 13.055 -1 -0.777 * Gold Miners Stocks Bullish ETF 3x    
JNUG 10.945 -1 -0.899 * Junior Gold Miners Bullish ETF 3x    
VRX 15 -25 -1.736 Valeant Pharmaceuticals    
VXX 32.285 -21 -1.908 VIX ETF    
LABD 24.09 -3 -2.398 * Biotech Bear 3 x    
EMV CURRECY            
        NEW POS NEW POS  
EURINR=X 73.078 -5 Short     Euro/Indian Rupee
FXE 107.12 -13 Short     Euro vs Dollar ETC
FXI 37.66 3 Flat   Exit Short China 25 Index ETF $
FXY 91.77 -7 Short     Japanese Yen ETF Daily
INRAUD=X 0.019 -25 Short     Indian Rupee/Australian Dollar
JPYINR=X 0.631 -7 Short     Japanese Yen/Indian Rupee
MXN=X 18.372 3 Short     USDMXN - US Dollar - Mexican Peso
USDARS=X 15.04 -25 Long     US Dollar/Argentine Peso
USDEUR=X 0.908 -7 Long     US Dollar/Euro
USDINR=X 66.26 -5 Long     US Dollar/Indian Rupee
USDJPY=X 105.119 -21 Long     USDollar/Japanese Yen
YCS 65.14 -13 Long Enter Long   Short Japanese Yen
VIX-SS CURRENCY            
        NEW POS NEW POS  
CNYRUB=X 9.39 -21 Short   Enter Short Chinese Yuan/Russian Ruble
EURJPY=X 115.782 -21 Short     Euro/Japanese Yen
GBPJPY=X 130.014 -23 Short     British Pound/Japanese Yen
MXN=X 18.372 3 Flat     USDMXN - US Dollar - Mexican Peso
USDBRL=X 3.167 -21 Short   Enter Short US Dollar/Brazilian Real
"INCOME" TRADES          
VIX-4 SYSTEM            
        NEW POS NEW POS  
DWTI 80.896 23 Flat   Exit Long * Crude Oil Bearish ETF 3x (NO)
GASX 33.89 5 Flat   Exit Long * Natural Gas Stocks Bearish ETF 3x
UWTI 18.7 -25 Flat   Exit Short * Crude Oil Bullish ETF 3x (NO)
YANG 14.38 -21 Flat   Exit Long * China Stock Bearish ETF 3x
BRZU 46.15 5 Long   Enter Long * Brazil Stocks Bullish ETF 3x
LABU 31.25 -13 Long     * Biotech Bull 3x
SHOCK TRADE            
        NEW POS NEW POS  
DPK 25.65 -19 Short     * Developing Markets Bearish ETF 3x
EDZ 22.01 -21 Short     * Emerging Markets Bearish ETF 3x
ERY 12.93 -13 Short     * Energy Stocks Bearish ETF 3x
MIDZ 29.565 -19 Short     * Midcap Stock Bearish ETF 3x
RUSS 10.658 -19 Short     * Russian Stocks Bearish ETF 3x
SDOW 13.06 -23 Short     * Short Dow ETF 3x
SDS 16.716 -21 Short     * Ultra Short S&P 500 3x
SMDD 22.62 -21 Short     * Midcap 400 Bearish ETF 3x
SPXS 12.595 -21 Short     * S&P 500 Bearish ETF 3x
SPXU 23.816 -23 Short     * Short S&P 500 Index ETF 3x
SQQQ 13.76 -19 Short     * Nasdaq (NASDAQ:QQQ) Bearish ETF 3x
SRTY 19.92 -19 Short     * Russell 2000 Bearish ETF 3x
TECS 19.23 -21 Short     * Technology Stock Bearish ETF 3 x
TMV 19.22 -19 Short     * 20+ Year Treasury Bear ETF 3x
TTT 26.19 -19 Short     * 20+ Year Treasury Short ETF 3x
TYO 13.7 -13 Short     * 7-10 Year Treasury Bear ETF 3x
YANG 14.38 -21 Short     * China Stock Bearish ETF 3x
^VIX 18.42 -1 Flat     CRB Volatility Index Daily
AGQ 43.53 5 Flat     * Ultra Silver Leveraged ETF (Bullish)
DGAZ 8.91 5 Flat     * Natural Gas Bearish ETF 3x (NO)
DGLD 48.11 -25 Flat     * GOLD ETN BEAR 3X (NO)
FAS 29.767 5 Flat     *Financial Stocks Bullish ETF 3x
FAZ 30.71 -25 Flat     *Financial Stocks Bearish ETF 3x
FINU 80.73 5 Flat     * Fin St Bullish ETF 3x (NO)
GASL 35.1 -25 Flat     * Natural Gas Stocks Bullish ETF 3x
GASX 33.89 5 Flat     * Natural Gas Stocks Bearish ETF 3x
JDST 28.8 -19 Flat     * Junior Gold Miners Bearish ETF 3x
JNUG 10.945 -1 Flat     * Junior Gold Miners Bullish ETF 3x
JPNL 44.253 -5 Flat     * Japan Stocks Bullish ETF 3x
LABU 31.25 -13 Flat     * Biotech Bull 3x
NUGT 13.055 -1 Flat     * Gold Miners Stocks Bullish ETF 3x
REZ 61.627 1 Flat     REsidential REstate CApped
SOXL 46.56 5 Flat     * Semiconductor Stocks Bullish ETF 3x
SOXS 14.95 -25 Flat     * Semiconductor Stocks Bearish ETF 3x
UGAZ 21.07 -25 Flat     * Natural Gas Bullish ETF 3x (NO)
UGLD 11.616 3 Flat     * GOLD ETN BULLISH 3X (NO)
UWTI 18.7 -25 Flat     * Crude Oil Bullish ETF 3x (NO)
CURE 26.95 1 Long     * Healthcare Stocks Bullish ETF 3x
DUST 40.05 -1 Long     * Gold Miners Bearish ETF 3x
DZK 43.83 -1 Long     * Developing Markets Bullish ETF 3x
EDC 64.07 3 Long     * Emerging Markets Bullish ETF 3x
ERX 31.28 -7 Long     * Energy Stocks Bullish ETD 3x
EURL 18.7 -1 Long     * European Stocks (FTSE) Bullish ETF 3x
IJH 150.956 1 Long     Mid-Cap ETF
IJR 119.25 -1 Long     Small Caps ETF
INDL 51.65 -7 Long     * India Stocks Bullish ETF 3x
IWC 73.22 -1 Long     US Microcaps ETF
KORU 28.04 3 Long     * South Korean Stocks Bullish ETF 3x (NO)
MIDU 25.1 3 Long     * Midcap Stocks Bullish ETF 3x
QQQ 117.14 1 Long     Powershares Nasdaq $
RETL 38.233 -1 Long     * Retail Stocks Bullish ETF 3x
RUSL 64.27 -1 Long     * Russia Stocks Bullish ETF 3x
SPXL 93.498 3 Long     * S&P 500 Bullish ETF 3x
TECL 47.08 -1 Long     * Technology Stock Buliish ETF 3 x
TMF 23.47 -1 Long     * 20+ Year Treasury Bull ETF 3x
TQQQ 122.93 -1 Long     * Nasdaq Bullish ETF 3x
UDOW 75.173 3 Long     * UP DOW ETF 3x
UMDD 59.59 3 Long     * Midcap Stocks Bullish ETF 3x
UPRO 70.861 3 Long     * S&P 500 Ultrapro ETF 3x
URTY 81.12 1 Long     * Russell 2000 Bullish ETF 3x
VOO 196.51 1 Long     S&P 500 (VANGUARD) ETF
YINN 18.29 3 Long     * China Stock Bullish ETF 3x
VIX-8 SYSTEM            
        NEW POS NEW POS  
EDZ 22.01 -21 Short     * Emerging Markets Bearish ETF 3x
LABU 31.25 -13 Flat     * Biotech Bull 3x
ERX 31.28 -7 Long     * Energy Stocks Bullish ETD 3x
INDL 51.65 -7 Long     * India Stocks Bullish ETF 3x
QQQ 117.14 1 Long   Enter Long Powershares Nasdaq $
TECL 47.08 -1 Long     * Technology Stock Buliish ETF 3 x

We want to show a picture of a couple of these SHOCK TRADE changes. First, however, one of my favorite stocks, making a bottom -- pre-election bottom:

AXU Update:

Cooper is soaring. Don't get too excited. I am watching copper -- I am almost excited. But not yet. We are heading into recession -- copper will let us know when the economy is beginning to grow.

Look at the monthly chart of copper:

You will notice that our 'best' 3x-ETF instrument has been VIX-4. We had no money invested in this instrument (Portfolio) in VIX-4 for the last three weeks -- so it ignored the temptation to invest long in the last three weeks of selling, unlike our other instruments.

VIX-4 is giving two new BUY SIGNALS today: BRZU and LABU.

We have two SPEAR CHANGES we would like to look at. LBJ looks like a BUY. This, with BRZU, is a vote for the oil economy. VIX is a SELL. (US Futures are sinking because of the election results.) VRX is a SHORTSELL.

For those of you who are shocked by the election results, I might refer you to my philosophical treatise in which I predicted either a Trump victory or at the very least a transition to the political right that will click in like clockwork in 2019. Here is what I wrote/write:

Donald Trump is a flawed Father Figure, yes. Hillary Clinton is also flawed (she is no Jimmy Carter). Here is my prediction. IF Hillary Clinton wins the Presidency in 2016, her reign will be a failure, as we slip into deeper financial, economic and social CHAOS, into material LUNACY.

In 2019, we will begin transforming the Negative Energy (lunar) back into Positive Energy (Solar). (Remember, Positive Spiritual Energy IS Negative Material Energy.) If Donald Trump fails in 2016, then we will have an even stronger Father Figure appear in 2019, whose job will be to 'order Chaos' and generate re-creation of the world. Creation IS the re-ordering of Chaos. Sleep is material chaos. We reorder the Earth by waking up each morning -- which begins the dis-ordering of Heaven.

My prediction is that the Father-Figure, Republican, Left-Brain, Law and Order, Literalist, Realist, Pragmatist is coming, is inevitable. He can come earlier than 2019. He IS coming.

Is Donald Trump this Father Figure? This is not clear.

The Democratic Era (2001-2019) is ending. The Spiritual Evolution Era is ending. We will receive a new body in 2019 and will begin reordering the Earth. This reordering period cannot be accomplished by the Right Brain. This is a Left Brain assignment.

Physical Evolution, the creation of the Earthly Temple, the City, Civilization, is the Fatherland's job. The Motherland's job is to guide the Spiritual Evolution of the Human Race, to build the Heavenly Temple -- AND to give birth to the next cycle, the Next Man, the Next Earth.

The Earth is pregnant, and will give birth to a New Life in 2019.

I am signing off early tonight. It is only 8:29 on the West Coast. Trump is winning; and the elitist broadcasting establishment is scared to death. I see this as a good thing.

Globalism is losing. This tells us that Protectionism is coming.

In 2019 the Old World ends; and the New World begins. It looks like Trump might win; and it looks like the Republicans will hold the Senate and the House. Time is running out of the Democrats. My view is that this is a good thing. That the mechanism is designed as a force of balance. The Republicans are better at organizing the material world; and the Democrats are better at organizing the spiritual world. We need both. If we think one side is better, smarter, or more moral than the other side, then we suffer with such balancing -- the wrong side is winning. But if you understand this as a necessary balancing, then such change is NOT a loss of identity.

This is the flow of History. We re-enter the Fatherland in 2019 (from 2019-2037) after having been in the Motherland from 2001.

Hold your hat if Trump wins. Gold Bulls are up 4% in Asia at the moment. Dow futures are down 1,000 points. The US Dollar is down 3.3% against the Japanese Yen. Treasury Bond yields are crashing.


Disclosure: I am/we are long BRZU.

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