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CGTS Daily, Wednesday, 28 July: Momentum Deterioration Suggests Selling Coming. VIX gives 'cover' shortsell signal, confirming selling coming.

CLARK'S GATE TIMING SYSTEM
  28 JULY 2010
- WEDNESDAY

NEW TRADING POSITIONS:
BUY SIGNALS: None
SHORTSELL SIGNALS: None

More deterioration in momentum.  Fewer issues at hitting +1; but fewer issues also are hitting -1.  There is selling; but not heavy selling.  176 issues are trading above the sell line; 103 issues are trading below the sell line.  More issues are now "declining" (147 to 135), which means their most recent move was down rather than up.  But the trend numbers are 9 points stronger today than yesterday -- more issues are in a positive trend.  Hard to see the end of a rally when this is happening.

CGTS VIEW: We seem to be at the beginning of selling.  Note the GSPC reading below -- short term momentum was 100 (overbought) yesterday and is 87 today -- that is, overbought and declining.  There was more buyers over this last week than we expected, so we are not rady to declare this rally over just yet.  Our portfolios are more long than short at the moment.

See below in our daily trades that the VIX and the VXX (VIX ETF) are giving shortsell cover signals.  It is possible the selling may be over in these anti-stock indexes, which would suggest we are entering a period of selling.

PART 1.  MOMENTUM REPORT

Rally-Mode:
Issues giving +1 or -1 Momentum readings today:
28 July 2010: 74 Positive and 42 Negative.
27 July 2010: 108 Positive and 57 Negative.
  Daily Change: -19.

Long-Term Momentum Trend:
Issues giving +1 or -1 readings most recently:
28 July 2010: 179 Positive and 103 Negative.
27 July 2010: 176 Positive and 106 Negative.
Daily Change: +6

Momentum Advance / Decline:
Issues moving Up or Down most recently.
28 July 2010: 135 Advancers; 147 Decliners.
27 July 2010: 157 Advancers; 125 Decliners.
Daily Change: -44

Momentum Trade Signals, Long and Short:
Issues moving Up or Down most recently.
28 July 2010: 54 Long, 30 Short
27 July 2010: 78 Long, 41 Short
Daily Change: -13

Intermediate-Term Trend Readings
Intermediate TREND is up or down.  A trend can be up but still negative in its pattern (lower lows and lower highs, for instance) or down but still positive in its pattern.  This measures direction of trend; not pattern of trend.
28 July 2010: Positive Trend 167; Negative Trend 113.
27 July 2010: Positive Trend: 163; Negative Trend: 118.
Daily Change: +9


GSPC, S&P 500 Index M2F ALT Momentum reading:
28 July 2010: 87
27 July 2010: 100
Oversold = 0; Overbought = 100


PART TWO.  TRADING SIGNALS


No new trades today again.  This is a good sign for our systems, which require positive trades to begin in oversold conditions with positive trends, and negative trades require issues to be overbought, with broken trends.

A lot of sell signals are still resulting from the overbought market conditions of this latest rally.

BA_D
Exit Long
BOEING DAILY
ROK_D
Exit Long
ROCKWELL AUTOMATION DAILY
^RUT_D
Exit Long
RUSSELL SMALL CAP INDEX DAILY
IO_D
Exit Long
ION CORP
AIG_D
Exit Long
AMERICAN INTL GROUP DAILY
BIDU_D
Exit Long
BAIDU
VNQ_D
Exit Long
REIT INDEX ETF
IYR_D
Exit Long
REAL ESTATE ETF
EOC_D
Exit Long
EXPRESA NATIONAL DE ELECT.CHILE
^FCHI_D
Exit Long
CAC FRENCH INDEX
^BVSP_D
Exit Long
BOLIVIAN INDEX
BEN_D
Exit Long
BEN FRANKLIN
GE_D
Exit Long
GENERAL ELECTRIC DAILY
COP_D
Exit Long
CONOCO PHILIPS DAILY
TXN_D
Exit Long
TEXAS INSTRUMENTS DAILY
ELNK_D
Exit Long
EARTHLINK INC
HPQ_D
Exit Long
HEWLETT PACKARD DAILY
EWQ_D
Exit Long
FRANCE ETF
^FTSE_D
Exit Long
FTSE DAILY INDEX
FIO_D
Exit Long
INDUSTRIAL/OFFICE REIT ETF
WFC_D
Exit Long
WELLS FARGO
^GDAXI_D
Exit Long
DAX GERMAN INDEX DAILY
 
 
 
DXD_D
Exit Short
SHORT DOW INDUSTRIAL ETF
^VIX_D
Exit Short
CRB VOLATILITY INDEX DAILY
VXX_D
Exit Short
VIX ETF
 


Here are some charts that show some trades from the group above (today's trades).



BIDU, Baidu: sell (take trading profits) signal.



BVSP, Bovespa, Bolivian Index: take trading profits (sell).



DXD, Short Dow Jones Average: take trading profits (cover short position).


FCHI, CAC French Index: take trading profits (sell).


FTSE, British Index: take trading profits (sell signal).



GDAXI, DAX German Index: take trading profits (sell signal).



GE, General Electric: take trading profits (sell signal).



RUT, Russell Small Cap Index: take trading profits (sell signal).



TXN, Texas Instruments: take trading profits (sell signal).



VXX, VIX ETF: take trading profits (covering sell signal).

More information on the CGTS systems can be found at:

http://home.mindspring.com/~mclark7/CGTS09.htm

 

 

 

MICHAEL J CLARK
Clark's Gate Timing System
Hanoi, Vietnam

84 4 221 92210





Disclosure: No positions to disclose.





Disclosure: See Disclosure Statement.