Rydex Market Timers: What Are They Up To?

This report was from Monday night, and it was sent to those subscribers who pay for the Premium Content.

Now for the commercial announcement: TheTechnicalTake blog offers Premium Content for a nominal yearly fee. The focus of this content is the Rydex asset data, which has proven to be a useful short and intermediate term timing tool. Investors in the Rydex family of funds are only a representative sample of all market participants, yet their actions have proven to be an effective tool for contrarian stock market analysis.

Several points about the Rydex asset data over the past couple of weeks:

1) Intermediate term measures, as measured by the indicator in figure 6 in the report, are pointing towards a market top.

2) Shorter term measures, such as the leveraged bulls to leveraged bears ratio in figure 1, have been moderately helpful in positioning for the day to day action. However, on Monday, the value of this ratio spiked higher with very little pullback in prices. This kind of "all in" is rarely rewarded, and on Tuesday it wasn't.

3) But here we are on Thursday and follow through for the bears has been non-existent. In other words, the bears have been unable to string together a couple of days, yet on the other hand, the bulls have not been rewarded as well.

In any case, here is the report, and I hope you find it useful. If you would like to subscribe to this Premium Content, you can click this link: SUBSCRIBE. If you would like to learn more about this service, you can click this link: Premium Content.

Rydex Report for 4.27.10