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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA

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To: J.T. who wrote (3636)6/29/2000 7:25:00 PM
From: J.T.  Read Replies (1) of 19219
 
Rydex Total Assets Update for Thursday, June 29th:

SPX Long - NOVA 598 Million
SPX Short- URSA 281 Million

NDX Long - OTC 3,271 BILLION
NDX Short- Arktos 104 Million

XAU - Precious Metals 54 Million
Money Market 1,127 BILLION

--------------------------------------
One Night Special -

Rydex Dynamic Series 200% correlation to market:

SPX Long - Titan 22.4 Million
SPX Short- Tempest 10.9 Million

NDX Long - Velocity 45.3 Million
NDX Short- Venture 3.8 Million


Short funds remain at record low numbers. New money is heavily skewed long in new dynamic series. The smart money Commercials as indicated in COT Report (Commitment of Traders Report) is at a record net short position.

What does it all mean>?

The market is going DOWN and potentially very hard.. Unless supports hold tomorrow, it could get very ugly. Maybe the market holds on at supports tomorrow and sucks a few more into one more rally - maybe it doesn't.

Nevertheless, the risk is clearly on the downside. Caveat Emptor. Let the Buyer beware.

Deceleration of earnings. PEG (Projected Economic Growth) Rates and deceleration of earnings are DIAMETRICALLY OPPOSED to each other. You can not have both at the same time. If growth slows, PEG becomes an erroneous market model. A lie. If this is so, the market will bear out the truth. And the supports will break.

Guess what folks: The market has already fully factored the upside in future growth via today equities prices. There is no more room for error. A collapse in confidence right now will lead to a domino effect and the selling will commence.

Best Regards, J.T.
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