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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