Figure 1. "Dumb Money"/ weekly
The "Smart Money" indicator is shown in figure 2. The "smart money indicator is a composite of the following data: 1) public to specialist short ratio; 2) specialist short to total short ratio; 3) SP100 option traders. As of this past Friday, the "Smart Money" indicator is neutral.
Figure 2. "Smart Money"/weekly
Figure 3 is a weekly chart of the S&P500 with the InsiderScore "entire market” value in the lower panel. From the InsiderScore weekly report we note the same lack of conviction that has plagued this bounce for the prior 4 weeks continues this week.
Figure 3. InsiderScore "Entire Market" Value/ weekly
Figure 4 is a weekly chart of the S&P500. The indicator in the lower panel measures all the assets in the Rydex bullish oriented equity funds divided by the sum of assets in the bullish oriented equity funds plus the assets in the bearish oriented equity funds. When the indicator is green, the value is low and there is fear in the market; this is where market bottoms are forged. When the indicator is red, there is complacency in the market. There are too many bulls and this is when market advances stall.
Currently, the value of the indicator is 47.75%. Values less than 50% are associated with market bottoms.
Figure 4. Rydex Total Bull v. Total Bear/ weekly
Were you buying at the market top? Wondering when to buy the dip?
Improve your market timing with Premium Content from TheTechnicalTake. For a nominal yearly fee, you will get a unique data set that will show you which way investors (i.e., bull market geniuses) are leaning.
It is independent and original market analysis. To view a recent report click: REPORT.