Overseas Markets

All of the Asian Markets are tanking in early trading today. This doesn't necessarily mean anything but a little wishful thinking that the U.S. markets will do the same can't hurt.

The Nasdaq will have to do it's best to show some red over the next couple of days in order for the CMI to make up some ground. Otherwise, the CMI will probably fall back into a no trade zone later this week. Taking a few losses is a normal part of trading the CMI but a quick 13% gain in January '08 gave this index a jump start, unlike this year.

Volatility at the end of 2008 and the start of 2009 has skewed the data and tends to knock the CMI around a little more than previous years. This results in more shifts between buy and sell signals until the market finds some direction.