Rydex Total Assets Update for Tuesday, February 12th, 2002:
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Money Market 1.549 BILLION**BULLISH Overbought
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Regular Series: (100% Correlation to Index (Nova 150%))
SPX Long - NOVA 222.4 Million**BULLISH Inversion
SPX Short- URSA 317.6 Million**BULLISH HIGHEST Close
Since 10/17/2000
NDX Long - OTC 833.5 Million**BULLISH
NDX Short- ARKTOS 157.6 Million**BULLISH Highest Close
Since 09/18/2000
(within 1.2 million higher we go back to 05/26/00 Highs)
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Dynamic Series: (200% correlation to Index)
SPX Long - TITAN 97.6 Million**BULLISH Inversion
SPX Short- TEMPEST 178.0 Million**BULLISH Near All Time Highs
NDX Long - VELOCITY 184.2 Million**BULLISH Inversion
NDX Short- VENTURE 222.8 Million**BULLISH
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Sector Funds:
XAU Precious Metals 88.6 Million**BEARISH
XOI Energy 11.5 Million**BULLISH Near 2 + Year Lows
OSX Energy Services 28.8 Million**BULLISH
BKX Banking 17.1 Million**BULLISH
BTK Biotech 305.6 Million**BULLISH
RUT 2000 - MIKROS 55.0 Million**BULLISH Decrease in
TA on another up day
RLX Retail 80.0 Million
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In the last Update we discussed the possibility of da larceny boyz going for the daily double and back to back Melt-Ups which of course, did not materialize, but something of much greater magnitude developed in the process which I will explain shortly.
It was further explained with money increasing in Short Bear Funds and Decreasing in Long Bull funds with reduction in TA Sector Funds that and I quote:
...<you have the ingredients for another LAUNCH HIGHER TOMORROW OR NO LATER THAN WEDNESDAY>...
I could have never begun to perceive the nature and the gravity of this mother lode heist winner take all into the end of the week.
Lets face it, the market is like the plague, few want any part of the LONG side of the equation and if you doubt me look at the TA reduction in the lead sled dog small cap index RUT Mikros...
The RUT 472.01 of course is quietly back above the 200 day MA (RUT 469.77) and will take out the 50 day MA (RUT 479.54)by the end of this week:
stockcharts.com
BTK got the early jump outta da box look at dis:
stockcharts.com
This upside explosion after my UFB adjective to decribe yesterdays Biotech TA action.
So the Bears think I must be hanging out at the horsetrack at Maywood Park betting on maiden specials at the glue factory stalls incorporated. lmazzoff
Where is this rally gona come from?
Let us begin with the least likely suspects:
1)The Internet Sector.
IIX 125.71 has held critical support at IIX 119 the last few days and has tested the end of October support lows and now is back at minor resistance IIX 127 levels . I expect a monster rally out of IIX that will thrust itself back above the 50 day MA at IIX 144.45 by sometime late next week. It is quite conceivable if this heist is of the magnitude I think it is capable of that IIX 144.45 could get pierced by the end of this week:
stockcharts.com
Oh, and by the way, I follow the Rydex internet sector TA which I don't post and lets just say.. da Bull is snortin' in da china shop.
2)The oil sector
XOI (506.45)... this pup is above the 50 day MA 504.22, but I see a minimum upside assault to XOI 525 area by mid next week
stockcharts.com
Monday is a market holiday as we honor all Presidents in this great land of America and astute traders know the day after President's day the market has not been kind to Bulls for some time.
3)Banks
BKX 815.47is finally gona get it in gear and once BKX 825 is out once and for all the Bears are gona realize the larceny boyz have come to inflict some max pain turning up da heat on da SQUEEZE play. The 50 day MA will be TOAST BKX 845.82 by the end of the week. It is not inconceivable that we take flight like a homing pigeon towards and pierce the 200 day MA BKX 856.72 but I do not expect a close above this level this week:
stockcharts.com
The Majors:
1)SPX 1,107.50 will take out the 50 day MA 1,135.37 with ease by the end of the week. We have a long shot at assaulting right under the 200 day MA SPX 1,160 level intraday highs by the end of this week.
stockcharts.com
2)DOW 9,863 will move back above 10,000 without breaking a sweat. DOW 10,130 within striking distance. Above all major MA's:
stockcharts.com
3)COMP 1,834.21 back above COMP 2000 (2,020 - 2,040):
stockcharts.com
4)NDX 1,464.76 back above NDX 1,620 (1,630 - 1,650):
stockcharts.com
5)RUT back to RUT 487 - 490.
6)XAU back down lower gap 61.33 - 61.69 gets pierced.
I think you get the picture... I don't know what will be the excuses the media will conjure up for this Melt-Up but I do know it is paydirt for the boyz and they intend on collecting their green at the window.
Now that I have stuck my neck out and stretched it longer than the likes of an ostrich... who would like the first crack at the guillotine in the unlikely event that the impending larceny and melt-up does not unfold?
Take a number... Get in line... lmazzoff
Sweet dreams...
Regular Series: 100% Long NDX OTC
Dynamic Series: 100% Long SPX TITAN
Best Regards, J.T. |
