CGTS MONDAY: A SELLING DRIP OR A SELLING WAVE?
CGTS Algo Trading System
CGTS MONDAY: SELLERS IN THE HOUSE? HOW WILL WE KNOW, OTHER THAN THE OBVIOUS WAY, OF COURSE.
Dec. 21, 2020 10:29 PM ET
Summary
- A SELLING TIDE; OR A SELLING DRIP?
Last night I watched stocks crash in th futures market; and I watched the Dollar make mince-meat of all other currencies. I wondered if it would last.
Not really. Stocks battled back all day, many finishing in the GREEN.
UMM.
Yesterday, after our post THE HEALTH OF THE MARKETS went out, we were asked to show how our CROSSOVER SYSTEM worked back in FEB-MARCH 2020, and since.
Gladly:
The first shows both C1=1 and C1=2 CROSSOVER and C1=1 and C1=3 CROSSOVER, which both went negative in FEB/MARCH 2020. Both marked by red boxes. The first went negative with the UDOW at 90.1; the second went negative with the UDOW at 99.39.
The green boxes show when both went positive again, on the same day, 3/27/20, with the UDOW at 40.43. That is a short GAIN of some 60 UDOW points.
On Sept 24, 2020, C1=1/C1=2 CROSSOVER went negative, with UDOW at 70.22. C1=1/C1=3 CROSSOVER did not go negative. C1=1/C1=2 CROSSOVER went positive again (see green box below) on 10/2/20 with the UDOW at 77.13; hence the 7 point losing trade in our CROSSOVER trade in September 2020. Henceforward, we have required both of these CROSSOVERS go negative to SELL THE MARKETS.
A TRADING SELL is clearly not the same thing as a SHORTSELL.
Today, not even close to being a reversal; although there was selling pressure most of the day.
Pre-Market.
3x-ETF TRADING
I don't remember ever seeing such an accurate trading instrument.
Last night was a bit of a reminder that stocks can go down. But underlying bullish strength in the market still seems to be THE STORY.
No new trades today for 3x M2F PLAIN. We are sitting in a BEAR GOLD LONG position but we are not certain of it. Gold is being pulled up and down by gigantic forces. Not a lot of confidence in this UGLDF SHORT/DGLDF LONG TRADE.
3x ULTIMA has a relatively new LONG SILVER play, USLV.
TMF LONG has been a disappointment.
FISHNET 3x is LONG CHINA in both directions, LONG YINN, SHORT YANG.
UMDD, MIDCAPS BULLISH, is up 77%.
We would LOVE to have an M2F ALT PLAIN system that was as accurate for stocks as it seems to be for 3x issues. We've tried several things to modify our M2F ALT System for stock trading. One idea was to stretch M2F ALT three times to mimic 3x velocity.
CROSSOVER TRADE
I warned you all about this one. Nothing can hold it back? Look how MOMO is swinging up.
ATHX, ATHERSYS. Here comes the rally. We are NOT in; but it looks ready to begin making up for lost time.
CLSK, CLEAN SPARK. Here we go higher. LONG.
SOLO, MOMO bottom. Heading higher.
We have CGTS OLDBOY to tell us what the strongest stocks in the CGTS database look like. How to trade these is another issue of course.
Which issues are strongest over the last 3 days.
FROG is number one as far as CGTS OLDBOY STRENGTH; but it is not showing it.
IS IT GOING TO MOVE? We think so.
#2 is SEED, which has aleady moved.
We will look at this issue and indicator more. No new tonight.
MJC, CGTS
Disclosure: I am/we are long BLNK, GBTC, TSLA, SOLO, LTHM.
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.
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