Looking at figure 1, which is a daily chart of the S&P500, we
note that the amount of assets in the Rydex leveraged and bearish funds are
now greater than the assets in the leveraged and bullish.
Figure 1. Rydex Leveraged and Bullish (green) v. Leveraged and Bearish
(red)/ daily
Despite the short term over bought conditions and the recent 5 day lift in
the equity markets on diminishing volume, the markets continue to chug higher.
As has occurred since March, 2009, bearish positions have been losing positions.
It doesn't pay to "fight the tape".
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advice. Under no circumstances does the information in his columns represent
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