Monkey Throw Dart: A View Inside the CMI

Sunday, March 1, 2009

A View Inside the CMI

cmi primary

Here is a basic chart showing the trend of the Cheetum Market Index. The red and the blue lines are primary indicators that must be on the same side of the horizontal "0" line in order to signal a buy of either the QLD or the QID. Red and blue lines above the horizontal line indicate a buy of the QLD whereas red and blue below the horizontal indicate a buy of the QID. The red line must also hold it's position on one side of the horizontal line for three consecutive days in order to verify the signal. It's important to note that these lines show where the CMI was, not necessarily where it is going although this graph is helpful as it does show a directional bias.

I will update this on a regular basis, or if others find it helpful, I'll post it more often. Currently, I look at the numbers that are used to generate this graph so the graph is just a show and tell piece.

At some point, I will compare this graph to last year. This may help illustrate the differences in results as we go forward.