Tuesday Update Sans Prediction

The CMI 2.0 performed better than expected during the first three months of the year. A healthy cushion was just what was needed to set the tone . The second quarter is getting off to a slow start which had to be expected based on past CMI performance. If the CMI decides to give a little back I would still predict, based on the last three months, that a 54% year-end gain is possible. But you didn't hear that here since prediction is off limits in the rainforest.

Looking at the Nasdaq, a 200 point drop is due. (Now would be a good time as all CMI followers would agree.) This is not a prediction. It is merely an observation when looking at a six month chart. Artificially pumping up the stock market is a game of accumulation and distribution which has been going on for just over a year now... and off and on since Wall Street was teething.

As for the future of this trade, it would take some serious upward momentum to shake the CMI out of the QID in the short term.