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16 June 2017 -- MINING FOR GOLD (AND GETTING CLOSER)

|Includes: AGQ, Direxion Daily Brazil Bull 3x Shares ETF (BRZU), BZQ

16 June 2017 -- MINING FOR GOLD (AND GETTING CLOSER)

Jun. 19, 2017 3:44 AM ET • BRZU, AGQ, BZQComment!

Disclosure: I am/we are long UDOW, BZQ.

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.

16 June 2017

INCOME FROM 3X ETFS: GETTING CLOSER (I THINK)

(Subscribers only, please check POSITIONS page for trading updates.)

The deeper one gets into the metaphysical Study of the Self the more the world differentiates into two great cosmic forces, designated in Western Classical Myth as Kronos-Saturn (the Father) and Zeus-Jupiter (the Son). In the novel I am writing, I differentiate further: Night-Cycles (18-year half-cycles defined by Darkness, and ruled primarily by the Moon) are Saturn-Cycles; Day-Cycles (18-year half-cycles defined by Light, and ruled primarily by the Sun) are Jupiter-Cycles. Jupiter expands; Saturn contracts. This is a half-truth. Jupiter expands the material world and contracts the spiritual world, (or the anti-matter universe); Saturn contract the material world and expands the spiritual world, the anti-matter universe.

Miners, grave-diggers and farmers are protected by Saturn -- anyone who digs in the earth for his living. Cave-dwellers. Here is an interesting description of Saturn -- and what I call the Night-Cycle, when the light of the Sun is gone.

www.skyscript.co.uk/astrology_saturn.html

Here is a page describing Jupiter, or what I call the Day-Cycle, and the Principle of Growth -- which is the gift of the Sun.

www.skyscript.co.uk/astrology_jupiter.html

My struggle with stocks, formulae, and "secrets" of the motion of the stars I consider to be contiguous with digging in the earth. Yes, metaphorically so. I is mining, but in a much more etheric earth. I have been mining and attempting to resolve the mysteries of 3x-ETF trading for some time now. My entire CGTS System is something I have been "digging" for years. The Night-Cycle is the time of learning (Saturn is called the Great Teacher). The Day-Cycle is the time for living (and loving) -- Life. Saturn is the Tree of Knowledge. Jupiter is the Tree of Life. So, by extension, the best time for digging up knowledge is the Night-Cycle (i.e., 2001-2019; or 1965-1983 before...) The Night-Cycle is the time for planting (planting is digging in the Earth and burying seeds); the Day-Cycle is the time for reaping rewards. Hence, in the web-page above, the author, Debra Houlding, calls Jupiter: "The Lord of Plenty".

In 2019 we have another meeting of the Primary Three forces of mythology. Catholics call this the Trinity -- I was raised a Catholic -- and the three forces are: (1) The Father; (2) the Son; and (3) the Holy Spirit (the Mother). In Greek mythology, 2019 will reenact the recurring saga of the struggle between Saturn and Jupiter. Jupiter is born again, the new Sun -- remember Herod is a kind of Saturn figure who knows the new Sun is coming to overthrow the Old World -- Saturn attempts to eat all his children so the New Generation cannot overthrow the Old Generation. In 2019 the New World will be born; the Old World will attempt to destroy the New World; and Jupiter will triumph over Saturn.

www.skyscript.co.uk/astrology_jupiter.html

More about this digging. Like the mythological John Henry, who was born with a hammer -- my father was named John Henry Clark -- I feel like I was born with a shovel. KEEP DIGGING, I tell myself. KEEP DIGGING.

Our goal is to perfect a trading system that can master the volatility of 3x-ETF trading to generate a steady stream of income. We have COUNT1 and COUNT2, both of which gauge momentum in longer and shorter cycles. Last week we wrote about stretching our COUNT2 to help provide a picture of an issue's vertical extension. COUNT7 was born. With COUNT7 we can stack two issues next to each other and see which one is a bigger tree. For example, INTC has a COUNT7 of 1258. MU has a COUNT7 of 600. Intel has more market momentum than Micron.

Hold your hat. If COUNT2 can be counted to 30 and COUNT7 is COUNT2 counted to 2400, then why can't COUNT3 be COUNT2 counted to 90? Obviously, it can be. What does this do for us? (Let us parenthetically state that we calculate what we call COUNT DIFF(erentials) for all COUNTS -- but we've never looked at them, until now.) COUNT3 (COUNT2 counted to 90) gives us a bit more flexibility, which seems to help us -- AND, now, it gives us a differential that throws a whole new light and a whole new shape of our MOMENTUM gauges.

COUNT3 DIFF (green line) shows us an "early-warning sign", which we might be able to use in trading 3x-ETFs. When COUNT3 (any COUNT) "ticks up", COUNT3 DIFF moves up to +2. But the DIFF begins to rise significantly sooner than the COUNT does. Let's look more closely.

Here's an even better look.

There is a problem with this system. Often COUNT3 DIFF ticks up from -2 before PROP1 converts back into the BUYZONE. The trade is not signaled since PROP1 does not confirm the move. COUNT3 DIFF is too fast for PROP1 in some cases. How do we solve this? We add a kicker. We buy COUNT3 DIFF when it moves from -2 to 0 and PROP1 confirms OR WHEN COUNT3 DIFF ticks up to +2 and PROP1 converts. This seems to fix that problem. The SIGNAL comes a bit later, a day or so later -- but we get more trades, and a comparable effectiveness rate.

We are getting closer. The message of this post is "WE ARE STILL DIGGING."

Best trading.

MJC, CGTS

Disclosure: I am/we are long UDOW, BZQ.