Set It and Forget It.

The Investors Intelligence survey of newsletter editors indicates that only 15.6% of editors look forward to lower stock market prices. This is a 22 year low. 51.1% look forward to the continuation of this rally.

As my good friend Snagglepuss used to say, “Exit stage left!” And my contrarian nature says leave the herd. The CMI give two thumbs up to that statement. Although it may be a little uncomfortable trying to sell this market with a QID trade, remember that following is more important that predicting…unless you have a proven track record of predicting market swing points.

Understanding the personality of this new indicator (CMI 2.0), and reading the signals requires some time. It takes a little getting used to when trying to establish the direction and longevity of a buy signal. It is apparent that large one day market moves that run counter to the expected direction can reverse a trade quickly, and smaller one day moves increase the chance of a longer “cycle”. Now that I’ve stated the obvious, it is becoming very clear that anticipating a change in market direction using this method is pointless, and potentially devastating for your trading capital. Setting well placed stops may be advised when gains or losses run into the double digits, but anticipating swing points should be avoided.

Ron Popeil and the CMI agree… “Set it, and forget it.”