Fat Finger Forecast

Spending too much time looking at charts, reading Dan Brown novels, and watching re-runs of Batman have lead me to my latest conspiracy theory. When I had stated that the NASDAQ should correct back to 2100 or so, the real reason was not only a potential inverse A-B-C pattern but, instead, a unique support level.

On May 6th when the bottom fell out of the market and the system shut down, the intra-day low was forever stamped into the record books, and charts.



It is easy to discount this 'anomaly' by considering it a product of high frequency trading, and move on. But, when reviewing the list of fifteen most heavily traded ETF's, only ten of them have dipped below the low of May 6th. More importantly, I don't believe this low spike was any accident, but rather a cryptic signal of sorts, or what I like to call an "en plein air" modern day, electronic dead drop by someone of means with a overtly sadistic sense of humor.

What fat fingered comedian could be behind this? We may never know. But the purpose of this "signal" may be quite clear:

"Expect the market to move lower until a test of the May 6th low on lighter volume is seen by the remainder of these ETF's, including the QQQQ's."

I realize I'm going out on the limb here. I am a monkey.

If you think this is conspiratorial non-sense just remember that the Joker, and the Riddler for that matter, could have overtaken Gotham City quickly and quietly but instead chose to leave puzzles and clues everywhere just for their own evil pleasure...and to confound the Dynamic Duo.

Is this just the random outcome of the latest trading algorithms at work, or a clue to the true nature of market insiders? Schadenfreude at its finest. You be the judge.

(Blame the lack of channels in the jungle for the multiple Batman references.)

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Friday was a day of redemption for the CMI 2.0. Holding a 20% gain until the end of this quarter will put the CMI in a decent position for the remainder of the year, in my humble opinion.
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Predictions are not the focus of this blog but when given the opportunity, the monkey will throw the dart once in a while.