Thursday, February 11, 2010

Rydex Market Timers: Still Bearish

Figure 1 is a daily chart of the S&P500. The indicator in the lower panel measures the ratio of the amount of assets in the Rydex bullish and leveraged funds relative to those funds that are bearish and leveraged.

Figure 1. S&P500/ daily/ Rydex Bullish and Leveraged v. Bearish and Leveraged

The current value of the indicator stands at 0.95 suggesting that the Rydex market timers are bearish, and this is a bullish signal. See the recent strategy piece on how this signal is combined with the 200 day moving average.

Lastly, as a reminder, this is a very short term trading strategy, and it does not say anything about the intermediate term direction of the market.


Anonymous said...

Hi Guy, I read you blog every day and I am very intrigued about the way you sum up the rydex assets data.

What assets are included? from ETFs?

Thanks and congratulations for your great job

Guy M. Lerner said...

I am not sure I follow the question; please re ask.

Thanks for the compliments, however

Anonymous said...


Your chart only shows 2009. Could you show the same chart for 2008?

Thank you.