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Sep. 10, 2020 10:57 PM ETApple Inc. (AAPL), AMZN, SOLO, WKHS11 Comments
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Long/Short Equity, Special Situations, Currencies

Seeking Alpha Analyst 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.


CGTS Algo Trading System

by Michael Clark

Michael Clark profile picture.

Michael Clark


Sep. 10, 2020 10:55 PM ET (AAPL), AMZN, SOLO, WKHS

Today looks bad. In fact, it was a positive day for most of tradiing and the last hour was negative.

Look how the NDX is clinging to SUPPORT at 11,316.75.

VIX gained today but not much. ULTIMA (light orange) is +5 and C1=1 and C3=1, both BUYS. 31.57 is TOP-DOWN SUPPORT.


We are still LONG, still BULLISH, with CAUTION. We're up 31.39% since 3/27/20 trading the SPX LONG.


Why are we CAUTIOUS? The answer is obvious, I guess.

CGTS DIAGNOSTICS: Early Warning-Signals. It is a bit surprising how PROP2 is holding up. Generally, when the selling hits, MOMO1 and PROP2 both collapse together. When both COLLAPSE WE WILL GO TO A DOUBLE CAUTION in our TRADING POSTURE. If Prop2 resists, we will not go to DOUBLE CAUTION.

Intermediate Indicators: As long as these hold up, we are looking good.

CROSSOVERS, All CROSSOVERS are still positive.

COUNT1=1 has decayed over the last 10 days. From 1041 to 872. Most of this decay has been BULLISH, from C1=1 to C1=2.

SHORTSELL (BEARISH) C1=3 has gained from 164 to 204.

C1=1 represents BULLISH BUYERS; C1=4 represents BEARISH BUYERS. Our BUYER/SELLER CROSSOVER measure C1=4 + C1=1 against SELLERS (C1=2 and C1=3)




AAPL is NOT in freefall. Support at 117.296 is holding.

WORKHORSE, WKHS. We have been LONG WKHS for a long time. We are long quite a few EV stocks. Look how the recent selling has impacted WKHS.

Our FIB ladder on the left side has been eclipsed. Each new trading bottom gives us new parameters for SUPPORT and RESISTANCE.

SOLO. SOLO has been sold off. It came down from 4.4 RESISTANCE to 2.44 SUPPORT. C1 has fallen from C1=4 (SHORT COVER) to C1=3 (SHORTSELL); C3=2, TRADING SELL.

UBER has not collapsed.,

Selling in AMZN; but not a CRASH. Ticking up in price here even as the selling in the markets continued.

BLNK, BLINK CHARGING, another EV option. Note ULTIMA (light orange) is still holding up. Support at 5.57 holding.


PTON, PELOTON: NOT hesitating here.

OVERSOCK bolts upward.

We want to get this in the mail early tonight.



HOPE you are all safe and well.



Can't believe the heightened hysteria of the Media and the Democrats as the election approaches. Remember when reporters were neutral and did not become emotionally involved in the questions of the day but let politicians fight their own battle. It was not that long ago. Now reporters feel it is their job to confront the evil of American politics and represent the good side of the Politically Correct battle. I, for one, think the media has taken the wrong path in assuming they KNOW the truth and need to represent it. CNN is a disgrace.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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