Rydex Total Assets Update for Tuesday, October 3rd:
Regular Series:
SPX Long - NOVA 486 Million
SPX Short- URSA 272 Million
NDX Long - OTC 2,729 BILLION
NDX Short- Arktos 132 Million
XAU Precious Metals 28.3 Million
Money Market 1,331 BILLION
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Dynamic Series (200% correlation to index)
SPX Long - TITAN 92.3 Million
SPX Short- TEMPEST 22.1 Million
NDX Long - VELOCITY 68.1 Million
NDX Short- VENTURE 51.6 Million
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Rydex numbers still complacent and suggest we will continue to go lower.
Another upside gap open - ANOTHER FAILURE to hold gains.
This is how Bear Markets work. Up mornings, down at the bell. These morning gap open rallies get us out of oversold conditions but by the close put us right back into oversold levels. Besides the DOW, I don't think we have seen 5 day RSI levels above 50 in over the last 7 trading days in NDX, SOX, IIX et al. NDX 3,580 was battle tested and lost by the Bulls and this level is now resistance. We closed at NDX 3,353.
Futures are up again tonight and this broken record of selling the rallies will continue until Rydex numbers show capitulation.
Today the SPX had an outside day with a lower close than the previous trading days intrady low. Outside days usually but not always signal a dramatic move is imminent. SPX closed at SPX 1,426 and this is the level we closed at on 9/26 and 9/27. So we are at clear grave support for the SPX that must hold - otherwise SPX 1,380 is on deck and this break of SPX 1,400 would be point of recognition that all is not well and finally get attention to complacent Bulls that a problem exists. It is a change in perception of fundamental analysis that challenges theory of PEG to justify current market valuations that finds no traction of buyers right now. PEG analysis works when confidence in market exists. When confidence collapses and earnings plateau as they clearly have, buyers go on strike PEG becomes useless in a changing dynamic market environment.
An old post from MITA on Projected Economic Growth (PEG)...lol
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To: macavity who wrote (3646)
From: J.T. Thursday, Jun 29, 2000 8:14 PM ET
Reply # of 4762
...<macavity, funny day today. I had the music on drowning out the noise on CNBS and I was listening to the Bulls favorite song by Steely Dan (aja- 1977).
The name of the song is called:
**************** PEG *******************
Lyrics to PEG made me feel warm and cozy <g>
I've seen your picture
Your name in lights above it
This is your big debut
It's like a dream come true
And when you smile for the camera
I know their gonna love it
I got your pin shot
i keep it with your letter
Done up in blueprint blue
it sure looks good on you
So won't you smile for the camera
I know I'll love you better
PEG
It will come back to you
PEG
It will come back to you
Then the shutter falls
You see it all in 3-D
It's your favorite foreign movie.
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For my encouraging Bull friends so dear to my heart...
I wish them well>...
Best Regards, J.T. |
