Staying True

I took the quick out today in order to get back in sync with the CMI. Of course the market went the other way but the important thing is that I am taking the guess work out and sticking with the plan. The 3.9% loss is reflected in the CMI results in the left sidebar. Notice how the CMI has not moved since any signal is hard to come by lately. This is not unusual as several weeks can go by without any signal. The good news here is that although the CMI did not capitalize on the recent downward market continuation, we haven't lost anything except a little time.

I plan on listing the time between signals from the last year so that it is clear that patience really is a virtue and the payoff is worth the wait.

For those more inclined to trade on a cyclical timeline, I will set up a comparison method, called the 'Q' Method, that uses the 50 day moving average of the QQQQ along with a simple stochastic overbought/oversold oscillator that may fall into that 'low risk/better than average reward' category. More on that later. It will be interesting to put up another simple method against the CMI as a sort of benchmark.

With the Dow falling comfortably below 7000, it would be an opportune time to ride the CMI down to 5000. Still no trade is in sight until next week possibly. The only way I will jump in early on a QID buy is if an overbought condition presents itself.