Swine Flu Stocks or CMI

While the CMI is in hibernation mode, now might be a good time to reflect on the CMI performance to date. You could invest in some of the solid blue chips or get rich quick with Swine flu stocks such as NVAX or BCRX. The problem is that solid blue chips are a disaster and the momentum stocks such as those listed tend to make you want to chase them, and by then its too late.

The CMI on the other hand may lull some traders to sleep but the end result is undeniable. Let's looks at the results of five trade so far this year:

+0.2%
-1.1%
+1.8%
-2.4%
+20.7%

Four out of five trades required buying the QLD. Seem like the CMI was not interested in making any large moves during the early, volatile part of the year. In true fashion, the losses were minor and the the gains overshadow the losses. It is interesting to note that the first trade allowed an easy 10% gain before returning back to the +0.2%.

The CMI does tend to look at the market from a different perspective. Let's see where it takes us over the next few months.