Rydex Total Assets Update for Monday, October 22nd 2001:
Regular Series:
SPX Long - NOVA 266.9 Million**BULLISH
SPX Short- URSA 262.8 Million**BULLISH
NDX Long - OTC 870.4 Million**BULLISH
NDX Short- Arktos 91.0 Million**BULLISH
XAU Precious Metals 26.9 Million**BULLISH Near 1 year Low
Energy 33.4 Million
Banking 30.2 Million**BULLISH
Biotech 338.8 Million
Money Market 1.259 BILLION
*******************************************
Dynamic Series (200% correlation to Index)
SPX Long - TITAN 127.7 Million**BEARISH
SPX Short- TEMPEST 117.0 Million**BULLISH
NDX Long - VELOCITY 152.5 Million
NDX Short- VENTURE 99.9 Million**BULLISH
*********************************************
Today was just the opposite action of the past few weeks. The market was down for less than half an hour and then up comfortably for the rest of the day gaining strength into the bell. Easy come easy go money gets long in a hurry as SPX Long TITAN TA rockets higher overnight. Interesting contrast though as Short Funds don't 'give it up' in the form of reduced TA... Tomorrow is a cycle swing day and can go either way plus 1 trading day.
Also of note is XAU Precious Metals got white hot BULLISH overnight as TA finally collapsed today like it should have over the last few days. Gold Bulls have been getting torched in Rydex Precious Metals of late as they have been getting whipsawed since the beginning of October not once, not twice but thrice.
Check the numbers from October 2nd close XAU 59.15:
Date XAU Close RYPMX Close PM TA
1)10/2 59.15 22.06 87.7 Million
2)10/11 51.98 19.90 42.6 Million
3)10/17 56.19 21.52 55.4 Million
4)10/22 51.48 19.85 26.9 Million
Bullish Low TA in Rydex PM is also confirmed by positive divergence in all gold Johannesburg index (JSE) closing price relative to XAU. XAU closed down another $1.26 @ XAU 51.48 - its lowest close since April 11th when the XAU closed at XAU 50.55. JSE, on the other hand, closed marginally up to JSE 1,295.50 from Fridays close JSE 1,291.90. On April 11th, JSE closed @ JSE 1,066.60. So if XAU drops below 50 level, JSE is gona play catch up and collapse.
Something is gona give way. Either JSE is gona breakdown here, or XAU is gona reverse back up with the yellow dog. Spot gold bullion, for the record, closed down another $4.50 to $274.90. So we either have a one day false break from 276 support and close back above 276 tomorrow. Or we continue into the abyss to the next lower support @ $265 level.
Five day RSI level on XAU now below oversold levels at 26.88. If we do in fact meltdown further, it is not impossible to get down around triple oversold levels around 10 on 5 day RSI. Tomorrow, gold Bulls need to hold the line or they enter into abyss land.
For the market to do my bidding for me, I would like to see that first XAU gap at @ XAU 47.49 - 48.46 from 4/3 4/4 get at least partially filled along with JSE first two or three gaps get taken out which is another 100 - 140 points lower. This, combined with Rydex Precious metals TA below 22.5 Million. If this materializes, I will be screaming BULLISH from the mountaintops.
Fund Bought Price Sold Price Profit % Gain
NOVA RYNVX 10/18 23.19 10/22 23.85 + 0.66 2.8%
TITAN RYTNX 10/18 11.67 10/22 12.11 + 0.44 3.6%
Regular Series: 100% Money Market
Dynamic Series: 100% Money Market
Best Regards, J.T. |
