Apr. 06, 2017 5:48 PM ETBRZU
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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.



Apr. 6, 2017 5:33 PM ET • BRZU, CNTF, HDP, OTCQX:AXASComment! comments

Disclosure: I am/we are long BRZU.

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.

We have simplified our system so we can get our report out earlier for tomorrow.

We are still LONG UDOW -- LONG the market.

We have some new LONG positions today -- our favorite BRZU.

Here's the report:

MYL 38.965 -8 -2 -25 Short     Mylan Labs
BRZU 38.87 -2 2 -7 Long Enter Long   * Brazil Stocks Bullish ETF 3x (NYSE:O)
HDP 10.84 -16 2 3 Long   <--- Hortonworks
YGE 2.9 -4 2 3 Long   <--- Yingli Green Energy China
AG 8.71 4 2 5 Long     First Majestic Silver
AMSC 6.71 10 2 5 Long     American Superconductor
AXAS 2.24 4 2 5 Long   <--- Abraxis Petro
COP 49.79 -12 2 5 Long     Conoco Philips Daily
EGO 3.45 8 2 5 Long     El Dorado Gold Mines
GDXJ 36.69 8 2 5 Long     Gold Junior Minors ETF Daily
GFI 3.63 10 2 5 Long     Gold Fields
HL 5.395 4 2 5 Long     Hecla Mining
HLF 57.87 10 2 5 Long     HERBALIFE
IAG 4.22 4 2 5 Long     I Am Gold
KTOS 7.88 4 2 5 Long     Kratos Defense & Security
MTL 5.81 8 2 5 Long     Mechel Open Joint Stock Company
PAAS 17.95 10 2 5 Long     Pan-American Silver
RGLD 71.5 10 2 5 Long     Royal Gold Inc
SAND 4.47 8 2 5 Long     Sandstorm Gold
SSRI 11.2 10 2 5 Long     Silver Standard Resources
CNTF 2.16 10 2 7 Long   <--- China Tech-Faith Wireless
RUSL 98.07 10 2 23 Long     * Russia Stocks Bullish ETF 3x
TSLA 298.83 6 2 23 Long     Tesla Motors Daily
Above or equal to -7 is bullish              
COUNT less than zero and climbing with a PROP1 greater than of equal to -7, is a BUY.      
COUNT greater than zero and falling with a PROP1 less than -7 is a SHORTSELL.        

In addition, the following stocks gave us a "running-start" BUY SIGNAL, which means they beat us by a few days to the starting gate.

If BRZU and AXAS are bottoming, then can EMES be far behind? We looked at our EMES monthly chart last night. Look how nicely the COUNT indicator marks trading bottoms.

EMES is not a buy today because its last sell-off drove POP1 into the SELLZONE. We are waiting for POP1 to recover. In terms of our LONG-TERM SUPPORT-RESISTANCE STRENGTH, EMES is our #2 stock.

FINU 65.8 * Fin St Bullish ETF 3x (NO)
EMES 13.59 Emerge Energy Services
CENX 12.73 Century Aluminum
BCRX 7.405 BioCryst Pharmaceuticals
X 32.86 US Steel Corp
DPST 59.17 * Regional Banks Bullish ETF 3x (NO)
CMA 67.99 Comerica (banking)
CLF 8.46 Cliffs Natural Resources
CC 37.625 The Chemours Company
GLEN.L 319.35 Glencore International
ALNY 47.85 Alnylam Pharma
FAS 43.93 *Financial Stocks Bullish ETF 3x
FCX 13.555 Freeport McMoran Mining
RUSL 98.07 * Russia Stocks Bullish ETF 3x
OREX 2.53 Orexigen Pharmaceuticals
CWEI 132.91 Clayton Williams Energy
HAKK 45.813 * Cybersecurity Bullish ETF 2x (NO)
FNMA 2.535 Fannie Mae Daily
FMCC 2.41 Freddie Mac Daily
BAC 23.265 Bank of America Daily
SLM 11.9 Sallie Mae Daily
PRU 106.28 Prudential
NVDA 100.76 Navidia Daily
TRUE 14.55 True Car
TWTR 14.376 Twitter
FINL 14.49 Finish Line
VRX 9.63 Valeant Pharmaceuticals
TEVA 32.35 Teva Pharmaceutical Daily
TNGO 5.24 Tangoe
GPRO 8.51 Go PRO
MNK 44.57 Mallinnkrodt (Biotech)
JCP 5.945 JC Penney
YGE 2.9 Yingli Green Energy China
JAKK 5.25 JAKKS Pacific
RGLS 1.575 Regulus Therapeutics
KGJI 1.07 Kinggold Jewelry
HTZ 15.685 Hertz
JNUG 6.83 * Junior Gold Miners Bullish ETF 3x
SRPT 29.36 Sarepta Therapeutics
BMI 36.35 Badger Meter
ACHN 3.85 Achilliion Pharma
UA 19.035 Under Armor
UGAZ 22.75 * Natural Gas Bullish ETF 3x (NO)
FIT 5.65 Fitbit
EYES 1.18 Second Sight
WKHS 2.31 Workhorse Group
SDRL 0.694 SeaDrill Ltd.
MNST 45.75 Monster Beverage
NAO 0.975 Nordic American Offshore

Best fortune.


Disclosure: I am/we are long BRZU.

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