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CGTS FRIDAY: 4% GDP GROWTH THIS QUARTER; 5.4% GDP GROWTH NEXT QUARTER -- IS CHINA REALLY WINNING THE "TRADE WAR"?  ALSO: BUY FANG (FNGU) ON DIP.

|Includes: BOTZ, EA, EUXL, FNGU, First Solar, Inc. (FSLR), GASL
Summary

REMEMBER: SEPT 1 2018 DEADLINE FOR 50% DISCOUNT TO CGTS NEWSLETTER SUBSCRIPTION.

CLARK'S GATE TIMING SYSTEM

27 July 2018

Today was a rough day, especially for the NDX. The DOW/UDOW complex held up quite well.

It was a rough day for FSLR, a rough week, in fact. One of our readers (who is not a subscriber) insists FSLR is headed to 20. I'm not so sure. He won this week's round however.

We noticed something more about PROP1. Of course, it is our prime engine. -7 separates the BULL from the BEAR. Something else. Primary trading support (BULLISH) is at -1. Look at the chart above. Support crashed through -1 first. Yes. Let's look at a couple more pictures of this.

One stock we really like is BOTZ, Robotics ETF LONG. It has been in a long correction. The weekly chart even looks to be making a Head and Shoulders Top. I stopped trusting traditional TA long ago. Too subjective. I love traditional TA. But it needs help. The weekly chart is rather bullish, despite the ghost of H&S Top. The daily chart tells a fuller story.

Look how the FIB lines depict levels of support quite nicely. The first move down paused at FIB 14%, holding on to it for some time (23.419); then 14% support failed and the stock fell. But 23% FIB (20.947) has held, so far. Also interesting is PROP1, bottom pane. We know -7 is the line between life and death. But look again at the sub-support @ -1.

You would think -1 MIGHT provide a trading system threshold. We will investigate this, of course. If we had bought BOTZ in July 2017, for instance, and only sold if PROP1 fell below -1 for two days in a row, we would have had a very nice gain. It will take some testing to see if it is useful. It is useful visually now, of course.

We own FSLR and BOTZ (MJC TRADING PORT). We also own MPC, MARATHON PETROLEUM. We see very clearly in this chart the bullish catch at -1. Intuitively we almost expect PROP1<-1 to coincide with COUNT1=2, TRADING SELL. Of course, it does not. We could use the two indicators in tandem -- but that would PROBABLY give us nothing that COUNT1 alone. already gives us.

MPC is clearly on a BULLISH move today, rising above PROP1>=-1 and COUNT1 Spin = 1. Let's look at MPC WEEKLY for a longer view of both SUBSUPPORT @ -1 and LIFESUPPORT @ -7.

Another interesting note: When a stock is BEARISH, a SHORT, with PROP1<-7. It also has a SUB-SUPPORT line @ -19.

What will we do with this information? What will you do with it? We send out PROP1 every day to subscribers. This information is for you to use with your trades also. If you are in a SHORT TRADE and -19 gets breached to the upside, you MIGHT cover at that point.

We are not in many SHORT TRADES at the moment. One we are in and watching is our SHORT of TECS, which is really a LONG position in TECL. But the chart below shows TECS bumping up against -19. We have been in this trade for some time. The recent SHORTSELL SIGNAL (show on the map) only encouraged us to stay SHORT. Our put options expire in OCTOBER, so we are not eager to get out.

The chart does show that a breaching of -19 on the upside did indicate possible SHORT COVER points for a trader (generally speaking). Of course, LT trading suggests Prop1>=-7 is still our best main trend trading indicator.

We will continue to investigate this. (In fact, let's look at it quickly.)

This is the formulae of such a system (Summary being PROP1; SPIN being Count1 Spin):

Shall we test AAPL?

First indications are promising.

Since we have your ear, let's run a report on this system, and see what we get.

Well, we get some interesting trades:

So, did this system anticipate FB'S calamity? No, it did not. Still, it was a winning trade, up 16points.

YIPES! Pretty good system, it seems.

You know I like IIVI a lot.

FAZ, FINANCIAL STOCKS BEARISH 3X, is not so accurate: only 75%. But a lot of good trades.

SDOW has been showing up on our bullish lists. Here too; but as a TRADING SELL now. Not exactly what we'd expect with a market topping -- i.e., it probably IS NOT topping.

Here is the full list of C1P1 Trades for the week:

7/27/18

Ticker

Close

COUNT1 SPIN PROP1 TRADE

COUNT1 SPIN PROP1 TRADE

COUNT1 SPIN PROP1 TRADE

COUNT1 SPIN PROP1 TRADE

Name

AHPI

2.410

Short

Flat

Allied Healthcare

BVSN

2.014

Short

Flat

Broadvision Inc

CHKE

0.440

Short

Flat

Cherokee Inc

FAZ

9.810

Short

Flat

Financial Bear 3X Direxion

KDMN

3.350

Short

Flat

Kadmon Holdings Llc

MTP

0.648

Short

Flat

Midatech Pharma Ads

NAIL

52.550

Short

Flat

Direxion Homebuild & Suppliers Bull 3X

RDUS

24.750

Short

Flat

Radius Health Cmn

YUMA

0.415

Short

Flat

Yuma Energy Inc

ANF

23.150

Flat

Long

Abercrombie & Fitch Company

CARS

28.330

Flat

Long

Cars.Com Inc

CYTK

7.450

Flat

Long

Cytokinetics

DDD

12.410

Flat

Long

3D Systems Corp

FXP

68.200

Flat

Long

Ultrashort FTSE China 25 Proshares

MDSO

74.530

Flat

Long

Medidata Solutions

NIB

27.250

Flat

Long

DJ-UBS Cocoa TR Sub-Idx ETN Ipath

NTGR

69.250

Flat

Long

Netgear Inc

RDHL

9.430

Flat

Long

Exit Long

Redhill Biophrma ADR

RENN

2.090

Flat

Long

Renren Inc

RUBI

3.030

Flat

Long

Exit Long

The Rubicon Project Inc

SGYP

1.660

Flat

Long

Synergy Pharma Cmn

TGA

3.180

Flat

Long

Exit Long

Transglobe Energy Cp

YANG

56.980

Flat

Long

Direxion FTSE China Bear 3X

AGA

37.000

Flat

Flat

Exit Long

DB Agriculture -2X ETN Powershares

FB

174.890

Flat

Long

Exit Long

Facebook

SDOW

16.240

Flat

Long

Exit Long

Ultrapro Short DOW 30 Proshares

CROX

18.720

Long

Flat

Enter Long

Crocs Inc

DFEN

52.180

Long

Flat

Direxion Daily Aerospace Defense Bull 3X Shares

DPST

79.038

Long

Flat

Direxion Regional Banks Bull 3X

DUSL

34.575

Long

Flat

Direxion Daily Industrials Bull 3X Shares

FALC

0.080

Long

Flat

Falconstor Sftwr

HCLP

15.250

Long

Flat

Hi-Crush Partners LP

HZO

18.900

Long

Flat

Marinemax Inc

SMSI

2.520

Long

Flat

Smith Micro Software

UDOW

97.330

Long

Flat

UDOW

IIVI

44.850

Long

Flat

Enter Long

I I V I Inc

TPOR

34.810

Long

Flat

Enter Long

Direxion Daily Transportation Bull 3X Shares

VECO

14.550

Long

Flat

Enter Long

Veeco Instrument

Ok; selling today. Should we panic? Not yet. The NDX chart shows that M2F ALT is saying we should have some selling here.

UDOW seems to be resisting the selling here. Count1 Spin just turned from 2 to 1 (a BUY SIGNAL) and M2F ALT shows resistance to selling, sliding sideways.

I have been in a SA article discussion with a write who claims the "CHINESE ARE WINNING THE TRADE WAR SO FAR" despite the fact that Chinese Indexes are bleeding and the YUAN is crashing, which he claims is because of a desire on the part of the Chinese to devalue their currency. In other words, the Chinese are winning in the currency war also. However, if the Chinese were intentionally devaluing their currency, the YUAN would be weakening against all currencies, not just the USD. And this is NOT the case. The USD is the international lawnmower. Trump is arguing with Mr. Powell because he wants lower interest rates and a weak dollar. This is foolish. If President Trump wants to win the Trade War he needs a stronger dollar. Will this transform the global economy into BULL RUN? NO. It will destroy debt; which is the first step toward a sane, healthy economy in the long-term. Do we want happiness and pleasure and economic growth perpetually? Of course we do. Can we have that? NO. Time for the world to toughen up; time for America to toughen up. The party is ending. But there is life AFTER the party. Sobering up is not always easy however, or without pain.

3x TRADING SYSTEM PORTFOLIO

New Trades today? GASL LONG. NAT GAS going higher.

All you FANG HATERS, FANG IS ALSO A TRADING BUY.

FNGU TRADES in this system:

Fastly becoming our favorite system, C1MAB.

7/27/18

Ticker

Close

COUNT1 M5AB

COUNT1 M5AB

COUNT1 M5AB

COUNT1 M5AB

Name

EUXL

23.860

Short

Flat

Enter Short

Europe Equities 3x

AGA

37.000

Short

Long

Enter Short

DB Agriculture -2X ETN Powershares

AZUL

20.280

Short

Flat

Azul S.A. American Depositary Shares [Each Repre

DUG

29.630

Short

Flat

Ultrashort Oil & Gas Proshares

TBF

23.030

Short

Flat

20+ Year Short Treasury Proshares

TBX

29.325

Short

Flat

7-10 Year Short Treasury Proshares

UUU

1.375

Short

Flat

Universal Security Instruments

WEAT

6.680

Short

Flat

Teucrium Wheat

NCR

28.210

Flat

Short

Exit Short

NCR Corp

ACXM

41.320

Flat

Long

Acxiom Cp

BHB

28.610

Flat

Short

Bar Harbor Bankshares

BKJ

17.604

Flat

Long

Bancorp of New Jersey Inc

CBMG

20.600

Flat

Long

Cellular Biomedicine

CDE

7.210

Flat

Short

Exit Short

Coeur Mining Inc

CHKP

113.580

Flat

Long

Check Point Software

CLF

10.670

Flat

Long

Cliffs Natural Resources Inc

CNY

47.625

Flat

Long

Exit Long

RMB/USD ETN Vaneck

DAX

29.810

Flat

Long

Exit Long

DAX Germany ETF

EWGS

63.440

Flat

Long

Germany Smallcap Index Fund MSCI Ishares

EWM

32.520

Flat

Long

Malaysia Index MSCI Ishares

EWO

23.500

Flat

Long

Austria Investable Mkt Idx MSCI Ishares

FAST

56.510

Flat

Long

Fastenal Co

FNJN

4.210

Flat

Long

Finjan Holdings Cmn

IIIN

40.710

Flat

Long

Exit Long

Insteel Industries

KAR

58.570

Flat

Long

Kar Auction Services Inc

SA

11.950

Flat

Long

Seabridge Gold

TA

4.300

Flat

Long

Exit Long

Travelcenters of America Llc

XIN

4.400

Flat

Short

Exit Short

Xinyuan Real Estate Co Ltd

ACU

21.910

Flat

Long

Exit Long

Acme United Corporation

EWJ

59.440

Flat

Long

Exit Long

Japan Index MSCI Ishares

FRD

9.710

Flat

Long

Exit Long

Friedman Industries Inc

LRCX

190.020

Flat

Long

Exit Long

Lam Research Corp

NSM

18.570

Flat

Long

Exit Long

Nationstar Mortgage Holdngs I

UTX

134.530

Flat

Long

Exit Long

United Technologies Corp

AMOT

45.610

Long

Flat

Allied Motion Tech

BCRX

5.740

Long

Flat

Enter Long

Biocryst Pharma Inc

CHDN

281.000

Long

Flat

Enter Long

Churchill Downs In

CLGX

48.990

Long

Flat

Enter Long

Corelogic

DPST

79.038

Long

Flat

Direxion Regional Banks Bull 3X

GG

12.500

Long

Flat

Enter Long

Goldcorp Inc

GVA

51.050

Long

Flat

Granite Construction Inc

HZO

18.900

Long

Flat

Marinemax Inc

JOB

2.590

Long

Flat

General Employment Enterprises

NVR

2,807.070

Long

Flat

NVR Inc

RYAAY

107.500

Long

Flat

Ryanair Hldgs Plc

UG

18.500

Long

Flat

Enter Long

United Guardian Inc

VECO

14.550

Long

Flat

Enter Long

Veeco Instrument

WLL

47.920

Long

Flat

Whiting Petroleum Corp

BCTF

15.600

Long

Flat

Enter Long

Bancorp 34 Inc

EA

133.810

Long

Flat

Enter Long

Electronic Arts Inc

FALC

0.080

Long

Flat

Enter Long

Falconstor Sftwr

GASL

22.470

Long

Flat

Enter Long

Natural Gas Bull 3X Direxion

IMPV

47.850

Long

Long

Enter Long

Imperva Inc

MANU

20.700

Long

Flat

Enter Long

Manchester United Ltd

SAM

277.550

Long

Flat

Enter Long

Boston Beer Company

XHR

23.880

Long

Flat

Enter Long

Xenia Hotels & Resorts Inc

PICTURES: NCR, TRADING SHORT COVER.

EUXL SHORT. European stocks coming down. See DAX TRADING SELL below.

UTX: TRADING SELL, nice gain.

BITCOIN? BCTF is volatile -- but if we exclude our M5 LEVEL=9 SELL SIGNAL, we get a nice LT trade with this same system. First chart is our C1M5AB System; second chart is our C1M5AB #2 System. Most stocks are NOT this volatile; so the difference between the two systems is not so great.

We love EA. We own ATVI, and TTWO. Now we might buy EA. (Even with EA, note the difference between MAB and M5AB #2.

Of course, seeing this distinction makes me wonder what an M5AB #2 report might look like. (Here is what it looks like, in fact.)

Especially attractive here: EUXL SHORT; GASL LONG.

XHR is an M5AB BUY

SAM, BOSTON BEER, got crushed today. Our system says it is a BUY.

GASL is a buy in this system also.

Soccer fans? Want to buy MANU, MANCHESTER UNITED? Now is the time.

How do MAB and MAB #2 compare in trading EA?

Both are accurate. M5AB is a "trading system". M5AB gives longer trades and more profit. I like M5AB #2 so much I am including it (in place of C1SUM60 TRADE) in today's RP.

How does GASL trade in M5AB #2?

GASL does trade options. Interested? Look at 2-month duration (or less -- I like some breathing room in case an early move is negative, which is always possible) -- say SEPT 20 calls @ 3.6-4.9. How do you decide with that kind of range in the ASK price? I usually split the difference. 3.6 + 4.9 = 8.5÷2 = 4.25. If you really are eager to get in, 4.5.

This newsletter is getting long. I'm obviously exuberant.

Our MARKET PROXY looks like this. SUM60 WEEKLY DIFF .

40 Issues - 6 BEARISH ISSUES = 34 BULLISH ISSUES = 85% BULLISH report.

7/27/18

Ticker

Close

PROP1 SUM60 DIFF

COUNT1 SPIN

COUNT1 SPIN SUM60

Name

UUU

1.375

-2.000

4.000

Short

Universal Security Instruments

TZOO

13.400

-2.000

3.000

Short

Travelzoo Inc

TIK

2.350

-2.000

3.000

Short

Tel-Instrument Electronics

KERX

3.860

-2.000

4.000

Short

Keryx Biopharm Inc

GEN

1.430

-2.000

3.000

Short

Genesis Healthcare Inc

AKAO

6.820

-2.000

3.000

Short

Achaogen Inc

AGA

37.000

-2.000

4.000

Flat

DB Agriculture -2X ETN Powershares

ZAGG

15.350

0.000

2.000

Long

Zagg Inc

W

115.500

0.000

1.000

Long

Wayfair Inc

SOXL

158.860

0.000

1.000

Long

Semiconductor Bull 3X Direxion

SOHU

30.530

0.000

2.000

Long

Sohu.Com Inc

LXRX

12.350

0.000

2.000

Long

Lexicon Pharmaceutcl

CBL

5.190

0.000

2.000

Long

Cbl & Associates Properties

BBOX

1.390

0.000

1.000

Long

Black Box Cp

^VIX

13.030

2.000

2.000

Long

CBOE VOLATILITYB INDEX

XXII

2.400

2.000

2.000

Long

22Nd Cent

UBIO

38.190

2.000

2.000

Long

Ultrapro Biotechnology Proshares

TA

4.300

2.000

1.000

Long

Travelcenters of America Llc

SGYP

1.660

2.000

2.000

Long

Synergy Pharma Cmn

SEED

9.720

2.000

1.000

Long

Origin Agritech Limi

RVEN

4.000

2.000

1.000

Long

Reven Housing REIT

RAVE

1.530

2.000

1.000

Long

Rave Restaurant Grp

PILL

31.808

2.000

1.000

Long

PHARMA etf 3x

OILD

21.770

2.000

2.000

Long

Ultrapro Short Crude Oil Proshares

MNK

22.930

2.000

1.000

Long

Mallinckrodt Plc Ordinary Share

MEXX

22.210

2.000

1.000

Long

Direxion Daily MSCI Mexico Bull 3X Shares

LC

4.040

2.000

1.000

Long

Lendingclub Corp

LBJ

26.100

2.000

1.000

Long

Latin America Bull 3X Direxion

GTN

14.950

2.000

1.000

Long

Gray Television

GBTC

11.950

2.000

1.000

Long

Bitcoin ETF

FALC

0.080

2.000

1.000

Long

Falconstor Sftwr

EYES

1.590

2.000

2.000

Long

Second Sight Cmn

ENDP

12.090

2.000

1.000

Long

Endo Int'l Plc

CBIO

9.500

2.000

1.000

Long

Catalyst Bio Cmn

CARA

17.570

2.000

2.000

Long

Cara Therapeutics

BTSC

0.074

2.000

1.000

Long

Bitcoin Services

BRZU

26.140

2.000

1.000

Long

Direxion Brazil Bull 3X

BRN

1.980

2.000

2.000

Long

Barnwell Industries

AKRX

18.230

2.000

2.000

Long

Akorn Inc

ADZ

37.000

2.000

1.000

Long

DB AGRICULTURE SHORT ETN

Have a wonderful weekend.

MJC, CGTS

Disclosure: I am/we are long FSLR, GBTC,BOTZ.