CGTS FRIDAY: STOCKS CONTINUE INEXORABLE UPWARD MARCH
Long/Short Equity, Special Situations, Currencies
Seeking Alpha Analyst Since 2009
CGTS: THE NEW SCIENCE OF INVESTING
Summary
- C3 TRADE SYSTEM: sell SOL gain of 471%.
- C3 TRADE SYSTEM: sell RIOT gain of 613%.
CGTS Algo Trading System
CGTS FRIDAY: STOCKS CONTINUE UPWARD MARCH
Feb. 06, 2021 10:39 PM ETASLE, CHKP...
Summary
- C3 TRADE SYSTEM: sell SOL gain of 471%.
- C3 TRADE SYSTEM: sell RIOT gain of 613%.
Impressive gains for the indexes. Unrelenting ascent.
Our closely-watched stocks moved mostly sideways today.
I guess this is a good excuse to look at some charts here.
A month ago (or so) I warned readers that the name HALL had been appearing to me in many places, popping into my consciousness unexpectedly. That was what happened to me when I first started to invest, almost always with great gains. I read into this a mystical source "speaking to me".
I ran charts of HALL, Hallmark Financial, off an on as it languished, with a WARNING: "DON'T MOVE ON THIS ONE UNTIL C3=1." Guess what?
CGTS WEDNESDAY: HAPPY NEW YEAR. IT HAS TO BE BETTER THAN THE LAST YEAR, RIGHT?
I searched the internet for ANY fundamental support for this trade and found none. SA had a review of HALL. It was undervalued, A+. But I NEVER buy just on VALUE.
MOMENTUM, C-. Of course it does not have MOMO yet. MOMO comes later.
GROWTH? B+. Revenue looked ok.
Options short-term only. We can buy JULY 2.5 Call options for 2.1 (?). With HALL trading at 4.26 these call options are pretty deeply in the money (4.26 minus 1.5 = 1.76 & 2.1 minus 1.76 = these options would cost only .34/option). Is my math correct? That is pretty cheap.
MOMO has made a HIGHER HIGH and C1=1, C3=1 and C4=1. Today, HALL broke 4.56 RESISTANCE (long tail up) but pulled back toward 3.89 SUPPORT.
MOMENTUM IS NOW UP.
Other pictures: QS. We want to buy it at (around) 31. Still trending down.
MULLING:
PSTH, PERSHING SQUARE SPAC. Is Bill Ackman's group really going to buy a huge stake in BLOOMBERG TV? Only Bill Ackman knows for sure.
PLUG has been one of the best stocks this year. It is not done. Resting at/near SUPPORT-52.24 it is poised to make a next assault on 75.68. See how C1=2 telegraph's a sideways resting move.
MOMO, red, got bent backward today. We like UNITY at 113 more than at 140. What made U break down; read below.
Is it too expensive already? Maybe. We like to get stocks at the beginning of their MOMO-moves.
We like U, UNITY SOFTWARE, but it seems to have hit
I have taken a bit of grief over the years from my investment in BLNK and in WKHS and in SOLO. BLNK is going higher, look at MOMO tracking higher. 43.78 is support; 78.99 is the TARGET. Do you believe this?
SOLO. Look how MOMO has bottomed in a sort of labored way. 12.76 and then 23.03.
We almost sold CLSK last week. We hesitated. MOMO was so long-term bullish we did not dare. Remember, MOMO needs to be making LOWER LOWS and LOWER HIGHS to scream TRADING TOP. C1 is still negative, as is PROP1 and PROP1 TREND; as is C3 (C3=2 is almost always negative). But C4=1. Look how MOMO (red) has bottomed ahead of all the other indicators, except for the price. Next stop, 37.71.
FUBO. I like it. Do I buy it? Call options are expensive.
LTHM. The price seems to have bottomed; MOMO has not bottomed; C1=2. It needs a MOMO bottom here to make it a TRADING BOTTOM. But it seems to be hugging 20.32 RESISTANCE and not falling further to SUPPORT, which is a BULLISH SIGN.
LAZR. C3=2. Usually we run the other direction when this happens. Top pane, red, PROP1 TREND collapsed and then rose right back up, indicating underlying strength. It is caught between 45 and 25 with MOMO (red, second pane down, still positive.)
PLTR, PALANTIR. MOMO still making HIGHER HIGHS. Price ssems to have bottomed, even though MOMO down and C1=2. C3 and C4 are BUYS. How expensive are these calls?
Not so bad. 10. Next stop for PLTR is 51; so 10 is not so bad. IF this is the bottom of the move, no more downside here.
EMAN. 4.22 next stop. MOMO bottom with C1=2. Remember our system that BUYS MOMO>0 and C1=2 and sells MOMO<0 and C1=1. We are not sure about this tweeking of the system. But it is a BUY here is that system.
EMAN has only good momentum in the SA assessment:
MOMENTUM A+; GROWTH C; PROFITABILITY D-; VALUATION C+.
C3 TRADE SYSTEM
One of our best systems is C3 TRADE. Up 153.4% since 9/18/2020.
A couple SELLS in that system today. I want to report this system every day from now on.
New C3 TRADE SYSTEM Signals today:
SHORT
VIX SHORT.
LONG.
Some SPACS and some newbies in this group, many without much trading data.
Branson's new Acquisitions vehicle.
How can we not (be interested)? We got into SPCE in a similar way.
OLBOY 100 TRADE. Sell TQQQ, GAIN OF 66.49%.
C1 System is also very successful. We want to keep our eye here too. In the past, the COUNT SYSTEMS were not active enough for a daily newsletter (we believed). But their performance has been excellent nonetheless. We owe it to our subscribers to be here effecively also.
SHORT.
Look at all these recent SHORTSELL signals, almost all ae REDDIT stocks. Ok; it does not take a genius to understand that these are SHORTS here. But the system DOES tell you.
It has been hard to make SHORTS work out in this market.
LONGS.
Merck, Merkel, Yuchai, CHA. CHA CHA CHA.
OLDBOY, one of each, one new SHORT, one new LONG.
OLDBOY_100_PORTFOLIO_2_5_21.xlsx
FISHNET System. We closed a few LONG positions today, all winners, all rather small gains.
NEW SHORTS, again a list of REDDIT refugees.
RKT I would avoid. C3=1, LONG.
We get a new BUYING WAVE from FISHNET today.
LONGS. MT; ARNC; EPAY; CHKP; HMN; LSI; LITE; 2318.HK; SOLVY; SNDX.
FISHNET_DAILY_PORTFOLIO_2_5_21.xlsx
M2F ALT PLAIN x3. The message here is that the TBOND sell off, as it was, is over.
M2F_ALT_PLAIN_x3_PORTFOLIO_2_5_21.xlsx
3x TRADING.
No new trades today.
3x_M2F_ALT_PLAIN_PORTFOLIO_2_5_21.xlsx
RP: RP_2_5_21.xlsx
QUERIES
I received this letter today; some of these answers might be useful to all readers.
I just subscribed to this newsletter.
Is the ProTA that you referenced in this article available to subscribers? I have the excel spread sheet.
Also, it looks like the Chat room is not used, last post months ago.
I understand how you use Count1, and Prop1 to generate buy/sell signals, but what is Old Boy and Fishnet? Are they just different algorithms that use Count and Prop to screen stocks? Should I care?
There are also different Prop counts, Prop 2, prop3. Are those just taking different time samples or just Prop1 with weeks? Should I care?
MY RESPONSE
Welcome to CGTS.
PRO-TA is a commercial technical analysis software available to ALL MAC users. It began as a technical analysis software and now includes some fundamental data also.
ProTA GOLD allows users to interact with the software, construct new technical indicators and trading systems. I built my CGTS System through ProTA GOLD. OF COURSE, BASIC PRO-TA DOES NOT include my CGTS System. Also, you must have a Macintosh computer to run this PRO-TA system.
PROP3 is the longest and slowest indicator of the stable. Prop1 is the stable. Prop 2.5 is shorter and faster than Prop1 and Prop2 is the shortest and fastest. All Props, as you suspect, are the same underlying indicator acting at different speeds. (I realize the numbering sequence of the PROPS is off: P2, P25, P1, P3.)
The same is true of the COUNT systems. Count1 shortest, C2, C3 and C4, all getting slower.
OLDBOY, M2F Plain, FISHNET, EXCAL...are all modifiers working mostly with COUNT1. They generally indicate longer-term price valuation (overbought and oversold) -- for instance, COUNT1=1, BUY, and OLDBOY<0, OVERSOLD, BUY. COUNT1=2, Trading Sell and OLDBOY>100, OVERBOUGHT, SELL.
COUNT1 DOES NOT HAVE AMPLITUDE. IT CAN REMAIN AT C1=1, BUY, FOR A LONG TIME, WITHOUT TELLING YOU ANYTHING MORE ABOUT THE LENGTH OF THE RALLY. The modifiers (Oldboy, M2F Plain, FISHNET, EXCAL...) all have amplitudde, give more relative information about the 'season' of the move.
I will show you picture of these modifiers in today's post. (In fact, the charts above show all the modifiers in use.)
Forumlae:
3x System
See last two panes; note: EXC Levels runs between -1 OVERSOLD; +1 OVERBOUGHT.
FISHNET SYSTEM
FISHNET, OLIVE GREEN; COUNT!, BROWN -- bottom two panes.
M2F ALT PLAIN x3 STOCK System
MAROON, in pane one on top + COUNT!, BROWN, Pane 2 from the top.
OLDBOY TRADE 100 System (CGTS OLD FIRST Indicator above)
TURQUOISE flow in second pane from top + COUNT1, BROWN, down one pane more from the top.
EXCAL, BLUE, top pane; + COUNT1, BROWN, second pane from the top.
COUNT3 SPIN, BLACK, Bottom pane.
Welcome aboard.
MJC, CGTS
________________________________________________________
MODIFIERS - third tier (OLDBOY, M2F ALT PLAIN, FISHNET, EXCAL...) -- Determine longer-term PRICE VALUATION (OB/OS condition). SHOWS "TREND + MOMENTUM + PRICE VALUATION".
COUNTS - Second Tier, SHOWS "TREND + MOMENTUM".
PROP - FOUNDATION STONE, SHOWS "TREND".
________________________________________________________
Wait. I almost forgot DIAGNOSTICS.
We don't really worry unless C1=1 is less than C1=2. C1=1 is a BULL MARKET BUY SIGNAL; C1=2 is a BULL MARKET TRADING SELL SIGNAL.
C1=1, 58.96% of the CGTS DATABASE. C1=2, 31.29%.
BEAR MARKET C1=3 and C1=4 are miniscule.
.73% of our market is C1=0, UNDECIDED, what we call our CHAOS FACTOR.
CORRECTION CROSSOVER picture:
Went as low as +423 on 2/2/21 and then turned back up. UDOW decline from 108 to 98 during the CROSSOVER recession.
CROSSOVER TRADE: still LONG. Up 16.08% life of trade; up 5.0% 2021; up 137.01% since 2/2016.
EARLY-WARNING SIGNS: all positive
PREMARKET, for what it's worth.
HEADLINE NEWS?
Did You Make Janet Yellen Rich?
Trump Jr.: 'Here's What Comes Next for Our Amazing Movement'
DOLLAR WEAKNESS TRIGGERS INFLATION/COMMODITY INFLATION. If one fears inflation, strengthen dollar and inflation falls.
No. Valuation does not matter any longer. It may matter again some day, when all the non-value investors are driven out of the markets -- and markets are again monopolized by value investors.
See above. Yields seem to be on the verge of stemming themselves.
I thought Social Media's job was to provide a forum for Free Speech -- not an undercover police force to ferret out non-conformity. BEWARE THOUGHT POLICE WARNING.
GOOD RIDDENCE. More room for immigrants who want a country they can love.
WATCH WHAT YOU WATCH, IT'S ALL PROPAGANDA.
Best weekend.
MJC, CGTS
Disclosure: I am/we are long blnk, clsk, gbtc, solo, wkhs.
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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