Rydex money inflows into leveraged Bull and leveraged Bear funds are at an extreme reading signaling a possible short term market top:
"Figure 1 is a daily chart of the S&P500 with the amount of assets in the Rydex bullish and leveraged funds versus the amount of assets in the leveraged and bearish funds. This data is hidden, but the ratio of bull to bear, which is depicted by the indicator in the lower panel, is 2 to 1. Since July, 2009, every time this ratio got above 2, it marked a short term top in the S&P500" in The Technical Trade
"Figure 2 is a daily chart of the S&P500 with the amount of assets in the Rydex Money Market Fund in the lower panel. The current value is the lowest value since the rally began in March, 2009. While all of this is short term noise, it is absolutely amazing that there would be this much commitment to the market after a 60% plus run in the S&P500." in The Technical Trade
Is it a good time to short the us stock market? Statistics are on the bear`s side.
1 comment:
you can always see what you want to see in charts.. you didn't include late july and mid oct peaks that shows continuation of a rally - if you want to short the market go ahead and do so if you haven't already - you can always find things to support your hunch but if you trade what the market is doing you wouldn't be looking at the rear view mirror but what is happening..
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