Figure 1. S&P500/ daily/ Rydex Bullish and Leveraged v. Bearish and Leveraged
The current value of the indicator stands at 0.80. Of note, this appears to be an isolated bearish bet as the assets in the Rydex Money Market Fund are decreasing not increasing. Typically, as a sign of fear, assets in the Rydex Money Market Fund will rise as bearish bets are made. In any case, I don't like to rationalize the indicators or strategies. I take all signals, and this is now a (short term) buy signal. See our recent strategy piece on the use of the Rydex leveraged assets.
You can view the 5 chart set of Rydex graphs that in all likelihood I will be offering as a value added thank you to those subscribers who make a financial donation to support the blog. More to follow!
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