Bobby, i agree 100% with you that this looks like yet another extension to the blow-off move in the making...note though that the Rydex ratios are at fresh all time lows as per today. especially the money markets+bear funds/bull funds ratio at 0,20 is a pretty mindboggling statistic imo. this is a bit tempered by an increase in index put buying that could be seen today, so we'll probably have more green ahead of us in the very near term at least...
however, i regard the Rydex ratios as a very telling microcosm of the positioning of capital generally. mutual fund cash levels are at an all time low as well, and the surge of the NAZ is increasingly supported by the massive rise in margin debt. the week ending 02/03 was btw. the first week in ages that saw outflows from money market funds. all this suggests that the often touted 'sidelines' money is drying up fast.
just a caution....
btw, someone said on the longwaves thread that the market gave a massive Hindenburg signal today, whatever that is...considering the fate of the Hindenburg, it's probably not good. <ggg> it's size, if it means anything to you was >3,50.
now, i have to ask you, what bearishness at the recent low? here perhaps, but in the world at large? not one sentiment indicator really gave an 'everybody's bearish all is clear' signal. perhaps that's due to the general perception that bubble boy will never allow this market to go down, which is by and large correct imo.
hb |
