CGTS Algo Trading System
CGTS THURSDAY: GAME STOP MARKET TURNS BACK UP (?)
Jan. 29, 2021 3:57 AM ETGLRE, PSXP...
Summary
- SELL UMDD, gain of 94.94%; SELL MIDU, gain of 94%.
- BUY TPOR, RUSL, DUSL.
IT'S A GAME-STOP KIND OF MARKET.
INVESTIGATE THE SHORT-SQUEEZERS? Really, why? Are Short-Sellers an endangered species? Well, they should be, I guess. In a liquidity-driven melt-up they still insist on using FUNDAMENTAL INFORMATION (VALUE) to SHORT a stock? Let them go extinct.
AAL, AMERICAN AIRLINES. Short-squeeze? Look at MOMO being driven back up to the FLAT position. This means it is getting ready to flip UP.
GME. It should pull back to support at 90.22. Which it did, duriing the day. What is this AFTER-HOURS nonsense? Up 69% after hours.
Remember, DEMS always want to blame WALL STREET. And the rich. Perpetual whipping boy. (Try and create jobs without them.)
AGQ, SILVER. HIGHER HIGH; HIGH LOW coming.
CLSK. Our system says we should have sold. We are hanging in on this one however. Why?
When I revert/convert to fundamental justification, you know I am grasping at straws.
What does CLSK do? BITCOIN services + energy.
3x TRADING.
Take profits in UMDD, 95% GAIN and in MIDU, 94% GAIN. MIDCAPS have soared.
One new BUY, 3x M2F ALT PLAIN, TPOR.
A COUPLE NEW BUYS FOR us that are a couple days late: RUSL, RUSSIAN STOCKS BULLISH, and , DUSL INDUSTRIALS.
Let's have a negative thought here. Last night I snuck back in to my post and added bullish news about VXX and VIXY giving SHORTSELL SIGNALS in OLDBOY.
BUT...what about ^VIX?
I am LONG a March UVXY PUT OPTIONS -- is this rally in pessimism a threat to this position? Of course it is; but...
The WEEKLY charts is even more instructive. This chart says the current rally is NOT a reversal.
3x_M2F_Plain_PORTFOLIO_12821.xlsx
DIAGNOSTICS anyone?
CROSSOVERS. There is deterioration. This we all know. Is it lethal? That is the question. Lethal, in terms of market gains. SHOULD WE SELL?
CORRECTION CROSSOVER weakening.
CORRECTION CROSSOVER close-up:
We have expected a deterioration in PROP2 to go with deterioration in MOMO1. Not happening yet.
EARLY-WARNING? You are being warned, yes.
We got rid of the duplication of ULTIMA measures; we added an M2F ALT CROSSOVER, which finally went negative. MOMO1 is negative. FEAR GAUGE, 29.22%, moderate, no panic. ULTIMA is negative.
M2F ALT CROSS, what does it mean? We are not sure what it means, in the largest context. This is relatively new. The CROSS means that OVERSOLD issues have finally surpassed (eclipsed) OVERBOUGHT. It's not clear if this is BULLISH or BEARISH, in fact. Should we sell, using this indicator? Or are we getting closer to a short-term trading bottom?
We started keeping this data in October when the indicator was negative, at 14%.
I am thinking out loud here. My thinking is that we are close to a trading bottom. If we look at 11/2/2020 above, we see that M2F ALT CROSS seems to bottom here, UDOW 70.22.
We should wait with this until we really understand how it works best.
CORRECTION? CORRECTION? Are we correcting? If we look at a correction as C1=1, BUY, being eclipsed by C1=2, TRADING SELL, we are not correcting yet. C3? A much stronger picture.r
The intermediate picture is really quite bullish (yet to decay?)
How is C1 BULL 90%? C1=1 + C1=2 is the BULLISH FACTOR. C1=3 and C1=4 is the BEARISH FACTOR.
So far, no move of C1=1 to C1=3, BEAR MARKET. A move from C1=1 to C1=2 is considered normal selling, still a BULL MARKET. Of course, we need to watch the strength of SELLING ahead.
DATA
CROSSOVER TRADE, LONG, up 13.11%. Up 2.3% for 2021.
STOCKS
We closed some FISHNET positions today. But look at the nature of these trades. The top four trades below were, in fact, ending SHORT POSITIONS that decayed into LONG positions. Five of the next 6 trades were LONG trades that were essentially profit-taking trades, and not transitions to BEARISH positions. In fact, everything in red was a SHORT position that lost and was transformed into a LONG position. Not exactly a picture of a market collapse.
This market, a liquidity-driven melt-up market, has been especially hard on SHORT positions. I won't show the SHORT trades for that reason.
NEW TRADES. Not many. But OLDBOY, which had a slough of new LONGS yesterday, has more today.
A Trading Sell today, VJET, a 56% GAIN.
New TRADES TODAY. (Does this mean the SELLING in the market will be short-term? We will be patient and learn from this.)
Yesterday we talked about the benefits of our OLDBOY PRIMO, which requires OLDBOY<0 and COUNT1=1.
Remember GREECE? Remember all the GREEK TURMOIL in the past couple of years? GREK is a BUY. I did not ever think I'd say that. Is it really? In OLDBOY PRIMO it is not a BUY until C1=1 and OLDBOY<0. The chart below shows a flaw in OLDBOY vis-a-vis PRIMO. In September OLDBOY bought GREK at 20; and it sank as low as 17.5.
PRIMO is clearly the better trade here; and PRIMO says GREK today is not yet a BUY.
PRIMO gives us a much different picture of today's new buys. We like the insurance of PRIMO; the C1 Trend has to be bullish before we jump.
Fewer trades with OLDBOY PRIMO; but perhaps higher quality trades.
From the TOO LAME TO BE TRUE files.
Is this TREASON? We know it is stupid. But is it treason?
Come on, no one believes this any longer.
This is the start of a slowdown -- unless the Dollar can be torpoded for a little while longer.
Ray Dalio is going to buy BITCOIN, soon. Is that a good thing? He has been on the wrong side for a long time now. Is his conversion the kiss of death?
Do you think Bill and Melinda Gates have to stand in line?
Prices rise because no one can afford to buy?
Everything is racist, isn't it? Racism is racist. Anti-Racism is also racist.
More Democrats? Aren't Democrats the problem?
The GOSPEL is wrong? What should I THINK? THOUGHT POLICE, please come to the rescue.
FOURTH TURNING DETONATION (PART TWO)
Oh; an even bigger advantage in the SENATE. The game just does not stop.
Didn't we KNOW it would come to this? (Is the Anti-Hero obsessed with the anus?). Remember, the ANUS is an ejection not an intake valve.
Every man, every country, for himself; and God against all.
Best good fortune.
MJC, CGTS
Disclosure: I am/we are long BLNK, TSLA, WKHS, IDEX.
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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