Rydex Total Assets Update for Wednesday, September 20th:
Regular Series:
SPX Long - NOVA 437 Million
SPX Short- URSA 284 Million
NDX Long - OTC 3,186 BILLION
NDX Short- Arktos 133.6 Million
XAU Precious Metals 36.7 Million
Money Market 1,666 BILLION
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Dynamic Series (200% correlation to Index):
SPX Long - TITAN 48.9 Million
SPX Short- TEMPEST 22.9 Million
NDX Long - VELOCITY 92.3 Million
NDX Short- VENTURE 68.1 Million
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One of the things that stands out in the last week is that SPX Long NOVA total assets have finally capitulated below the magic 450 million level in 3 of the 4 trading days. The last time this happened was May 22 - 25 when SPX traded b/w SPX 1,400 - 1,373. Soon thereafter, we bounced hard on that Tuesday after Memorial day on May 30th when SPX rocketed 44 points for the highest 1 point SPX gain for the year. Right now SPX closed at SPX 1,451 and above critical support SPX 1,440. Can you say BOUNCE... no later than Friday for the close back above SPX 1,480.
The other observation is that even in this latest SPX correction, it is obvious money is uncomfortable in betting on the short side. SPX Short URSA total assets could not even eclipse the 300 million asset level as the highest close was 296.5 million on 9/18. One has to go back to August 10th when assets last peaked at 325 million and SPX closed at SPX 1,460. Today total assets were 284 million and SPX closed at SPX 1,451. So assets on the short side are 19%+ lower in the face of a lower SPX level. Obviously asset levels should rise on the short side as SPX closes at lower levels. Hence, the discomfort on money betting on the short side.
As we get out of the thicket of negative confession pre-announcement period over the next week or so, I think this market can rally back above SPX 1,500 and eventual new highs sooner rather than later. However, if SPX 1,440 close support is violated back to back consecutively, we may have to wait until November or even December to see new SPX highs. And this would prove to be Al Gores undoing in the face of a jittery market into the November elections.
How's zhaat?
Best Regards, J.T. |
