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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: http://home.mindspring.com/~mclark7/CGTS142.htm His fine arts portfolio can be found at the following address: http://www.hoalantrangallery.com/MJC2.htm His writing portfolio can be found at: http://www.hoalantrangallery.com/MJCwriting.htm 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: http://www.hoalantrangallery.com/Turnoutlights.htm Michael Clark has retired after working 30 years in academia, relocated to Hanoi, Vietnam for six years, and has returned to America in 2014.



Aug. 29, 2017 8:47 PM ET



29 August 2014

We have talked a little bit about our OTHER 3x-ETF trading systems, which are (so far) much more successful than our featured M2F ALT 3x System.  COUNT1 3x is, in fact, a clone of that same system.  It depends upon (for the LONG TRADE) M2F ALT being oversold, EMV being oversold, and COUNT2 being positive -- of course, PROP1 also positive.  It gives fewer signals because of these rigorous requirements.

We did get a signal today.

This is not a short-term trade.  If you are buying call options for this trade, you will need 4-5 months to expiration. Average duration: 95.75 trading days; 19.15 trading weeks; 4.78 trading months.

We got a BUY SIGNAL yesterday on NAIL, HOMEBUILDERS STOCKS BULLISH ETF, in the same system.

We had no new M2F ALT 3x trades.

The NDX is in rally mode.  See the top pane as M2F ALT stops its decline to try to find higher ground.  This is a WALL OF WORRY, I guess.  When I look at the internet and at television news, I see a WALL OF WORRY.  Negative grows and peaks in 2019, then begins to lose power, at which time the madness (of the moon, did I say that?) begins to dissipate.  Lunar Power (night-cycle) still will vibrate higher and harder.  The progressives believe that GENDER CONFUSION is social progress, rather than simply DECADENCE and SELF-INFATUATION.  In 2019 they will begin to see their error -- and they will begin to shrink, as matter and spirit make contact -- matter weakening.

From our C6 Spin SELL CATEGORY.

C6 SPIN clicks up from 1 (BUY) to 2 (TRADING SELL).  Nice profit.

Here's today's SPIN REPORT.

For fundamental CGTS descriptions:

Clark's Gate Timing System






Disclosure: I am/we are long FINU.

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.

Disclosure: I am/we are long FINU.

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