The QLD signal that appeared a couple of days ago dealt a severe blow to the CMI. The good news is that all signals get fed back into the database and then get filed in the "if it doesn't kill you, it will make you stronger" folder. Actually, the more data points, the better. The CMI continually evolves and seeks perfection...and some serious seeking is needed. Still, these costly "glitches" should not overshadow the bigger picture...
The higher highs, and the left side y-axis % gain numbers cannot be ignored. The red vertical line represents the start of actual trading. To the left of the red line are the back-tested results. Not much has been proven regarding actual trading but losses and plateaus have always been part of this method.
The CMI will most likely switch back to the QID at tomorrow's open if the QQQQ's remain below 44.20 at today's close.
Tuesday, August 24, 2010
Weak Signal Disease
