Serendipitous Saturday

ser•en•dip•i•ty
noun \-ˈdi-pə-tē\
: the faculty or phenomenon of finding valuable or agreeable things not sought for.

Competitive Signal Generators



The market has given some extremely useful feedback during this post-April volatilityfest. Is the monkey chasing another Rosetta Stone mirage or did he bump his head on something real this time? Sometimes I have the need to refer to myself in the third person.

The ability to ride the various market oscillations during accumulation, consolidation, and distribution phases requires a system with either well timed flexibility, or a steadfast approach using the longer term trend. The latter requires the ability to ride deeper drawdowns. The current CMI revision uses two competing, but friendly, signals generators (so to speak) in an attempt to match the market 'rhythm'.

Secondary benefits to the Cheetum Market Indicator revision may include a greater win percentage, and one-third less trades, although this is only a best guestimate.
Enough with this propaganda. The proof will be the future gains...and maybe a smoother line on the historical trend chart.

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Stepping It Down?

Even with the market moving up yesterday I am glad to see I am in agreement with the CMI. Sure seems like the market is marking it up only to sell it down.



No need yelling "Fire!" in a theater when you can achieve the same result in an orderly fashion. There is plenty of time to drive the market down all at once a la Fat Finger Thursday (May 6th).
You can see I spared no expense on the chart graphics.

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Book Review 40 Years Late

I don't do many book reviews. I'm a chimp. The last book I picked up made absolutely no sense until I realized I was holding it upside down.

Anyway, I still find the books written by Richard Ney fascinating. This guy did his best to inform the public of the underhanded nature of the stock market with particular emphasis on the specialists. His books are out of print but you can always find one somewhere. Most likely the specialists had a book burning party several years ago.

"Har come that Ney feller stirrin' up trouble agin."

It's no wonder he was banned from the Tonight Show, and the NY Times refused to review his book. How dare he expose the truth! Marc Courtenay wrote about this not too long ago. Check it out here at Seeking Alpha.

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Reading the Comments

If you clicked on the last Seeking Alpha link, scroll down to the comment section. Ivan Kitov commented regarding an expected market downturn in May 2010. This was posted last August. I don't know if these comments can be backdated, but if not...nice call. According to Ivan's profile, he is "a Doctor of Physics and Mathematics, Lead Researcher at the Institute for the Geospheres' Dynamics, Russian Academy of Sciences."

Here's a link to his mechonomic blog. I already feel smarter saying the word "mechonomic". Take a close look at the predicted direction of the S&P through 2011.

Ivan uses nine year olds and three year olds in his equations. Really! Apparently there are no child labors laws in his country.