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Jan. 22, 2021 10:59 PM ET6 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


Jan. 22, 2021 10:58 PM ET


  • What is wrong? You tell me.

A creeping feeling that something is wrong. Where does it come from?

Stocks struggled today, starting weak anda then finishing strong.

CLSK recovery; GBTC recovery.

CLSK, CLEAN SPARK. C3=2, SELL. Ok; do we sell. We still have a nice gain.

MONTHLY. Here is a stock that traded over $150 back in 2018. RESISTANCE 39.49; SUPPORT 27.26, which is where it did find support in fact.

What does it mean that our column, our octave, is played out? We will get a new scale when MOMO bottoms again.

Be prepared for a new BUY SIGNAL for one of our LONG stocks, XOMA, below, FISHNET.

Here is the "scaled" view of XOMA. It reached down to SUPPORT at 34.9; 62.99 is the next TARGET.

Ok; speaking of FISHNET, quite a few trading sells here today.

Mostly winning trades this past week in the FISHNET System. Today all winners.

JBT, up 31.74% on the trade.

NVTA, gain of 19.22% on the LONG trade.

MLHR, gain of 7.73% on the LONG trade.

TPOR, gain of 11.72% on the LONG trade.

SMSI, gain of 29.18% on the LONG trade.

SYNC, gain of 43.21% on the LONG trade.

RAIL, gain of 47.12% on the LONG trade.

KIN, gain of 41.11% on the LONG trade.

What does this mean, all these SELL SIGNALS? Does it mean anything? Remember FISHNET gives us strong clues about WAVES in the market. So with all these SELLS, is the market weakening?

Today's FISHNET Report gives us new waves in both BUYS and in SHORTSELLS.

BUYS FIRST. See XOMA below, last stock on the new buy list.

XOMA, through a different lens.

STOR, BUY. Note, FISHNET has to return to ZERO, with C1=1 or C1=2.

CDE, Coeur Silver Mining. Note, USAS is also on the BUY LIST, another silver stock.


The SHORTSELL LIST is also interesting. The great drama in the TBOND 10-year YIELD game is doing what we expected. The yield rally is getting long in the tooth (in the truth).

This is not always a good trade. But it mostly is. Three LONG trades in 11 years.

RLMD, which was a LONG trade this week in our OLDBOY SIMPLE COUNT WEEKLY System. MOMO is NOT telegraphing a lot more downside in this own, sideways consolidation. We might avoid this SHORT, deferring to the WEEKLY CHART calling for a transition up.

QLGN looks like a BETTER SHORT.

So does IQ, in fact. COUNT3=2; this is NOT technically a BEARISH READING but C3=2 is pretty much guaranteeing more downside. COUNT1=4 means we are enduring now a BEAR RALLY. But for how much longer?

We intended to focus more on our WEEKLY Systems today; but FISHNET simply insisted. So we will follow the flow.

We closed a LONG trade in our M2F ALT PLAIN System. A 76% gain in TGTX. Nice trade.

One new BUY SIGNAL today in M2F ALT PLAIN x3.

Some readers like to pick their own positions and then guide their trades using our system. I understand this, of course. Some readers are better STOCK PICKERS than we are. Our system works better if the readers BUY when we say BUY -- because we are targeting the TRADING BOTTOM. When we say BUY it is based on timing the BOTTOM. When we say are stock is LONG, this means that it is reading a LONG trade, but it does not mean it will be a positive trade if you get in anywhere. The system tells you when and where to BUY and when and where to SELL: it picks bottoms and tops. To do best with out system, we will want to BUY when we sell buy. If you want to manage your own trades using out system, that can work, especially if you use the LONG TERM strategy of COUNT3 or some other modification. Anyway, our RP is designed to allow readers to manage their own trades using our systems.





SCORECARD: Positive; not sign of reversal.



Good. If she is afraid, maybe she will go back inside her home.

Black Prof Shreds 'Anti-Racist' Activists For "Bluffing", Confronts What They "Don't Want To Talk About"

RP will be added later

Have a good weekend.


Disclosure: I am/we are long Blnk, clsk, gBtc, tzoo.

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.

Additional disclosure: etc.

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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