Rydex Total Assets Update for Thursday, August 10th:
Regular Series:
SPX Long - NOVA 500 Million
SPX Short- URSA 325 Million
NDX Long - OTC 2,932 BILLION
NDX Short- Arktos 140 Million
XAU Precious Metals 28.1 Million
Money Market 1,457 BILLION
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Dynamic Series- 200% Correlation to Index:
SPX Long - TITAN 35.1 Million
SPX Short- TEMPEST 30.4 Million
NDX Long - VELOCITY 74.9 Million
NDX Short- VENTURE 28.4 Million
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SPX Long NOVA assets (500 million) have shrunk to levels only seen one other time (July 28th (SPX 1,419 Close) since the end of May. On May 30th, SPX closed at 1,422 and total long nova assets closed at 481 Million. One trading day before memorial day on May 26th, SPX closed at SPX 1,378 and long spx nova assets closed at 448 million.
What does this mean? "Invested rydex money" is rotating toward a more bearish bent with ferocious rapidity and this is a contrary indicator nearterm. We should see a closing bottom within the next two trading days before another bounce. SPX should find good support at SPX 1,440 unless tomorrow PPI is robust in which case SPX 1,420 will be put to the test intraday no later than Monday by the close.
SPX 5 day RSI closed at midrange 45.90. SPX closed at SPX 1,460 down over 12 points.
BKX 5 day RSI closed at overbought 71. BKX closed at BKX 858.67. BKX has been very strong of late but will act as a drag on the SPX within the next two trading days. If a benign PPI materializes, we can move to 82-84 RSI level which would take us to this BKX 890-900 intraday level. BKX has good support at BKX 835. On a robust PPI, BKX 820 will surely be tested intraday within the next two trading days.
UTIL is right at overbought levels with a 5 day RSI of 69.62. UTIL closed at UTIL 352.40 and has good support at 340-345 area. A two day back to back close below 340 would raise a red flag for DOW and SPX. UTIL has worked side by side with BKX in keeping SPX from breaking significant supports.
DOW closed right at overbought 5 day RSI of 69.43. DOW closed at DOW 10,909 up +3. On any benign PPI report DOW has potential to assault DOW 11,020 intraday high before turning back down. It would take us near extreme overbought 80 RSI if this pop materialized. DOW 10,700 has good support which has elasticity underneath 25 day MA of 10,725. In the event of a surprise robust PPI # number we can go test DOW 10,620 intraday over the next two days before looking for the bounce.
I will look to address NDX, IIX, SOX et al tomorrow.
Best Regards, J.T. |
