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Figure 1. S&P500/ daily/ Rydex Bullish and Leveraged v. Bearish and Leveraged
The current value of the indicator stands at 1.34. As suspected, this turned out to be an isolated bearish bet rather than increasing fear and a move to the sidelines by these market timers. In any case, this now represents a short term sell 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 later in the week!
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5 comments:
Hi. I've been viewing these charts with interest.
Is chart #3 the one that best expresses the short term play on this concept?
You can download the series of Rydex charts at this link.
the chart you refer to looks for relative and absolute extremes in buying and selling with the total amount of assets in bullish and bearish funds
it can function as both a short term and long term play; extremes in buying, which are actually sell signals, tend to occur with prices above the 200 d MA; extremes in buying that occur with prices below 200 d ma tend to lead to continuation
When I get this premium service up and running (and it should be shortly) I will have the ability to answer your questions and provide further details on the indicators, etc
Thanks, looking forward to it.
sure enough, Rydex works like a charm as show today!
I always caution that there is no holy grail; it is just signposts and nothing else.... the data allows one to function or navigate in the markets in a manner that is against the consensus
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