Wednesday, February 17, 2010

Rydex Market Timers: Take A Guess Before You Read!

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 1.01 suggesting that the Rydex market timers are warming up to higher prices. With regards to our recent strategy piece, this is now a sell signal.

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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