Rydex Total Assets Update for Monday, May 13th, 2002:
***************
Money Market 1.454 BILLION**BULLISH Overbought
***************
Regular Series: (100% Correlation to Index (Nova 150%))
SPX Long - NOVA 230.8 Million**BULLISH
SPX Short- URSA 302.6 Million**BULLISH Overbought
NDX Long - OTC 668.2 Million**BULLISH Oversold
NDX Short- ARKTOS 152.6 Million**BULLISH Increase in TA
**************
Dynamic Series: (200% correlation to Index)
SPX Long - TITAN 151.8 Million**BULLISH
SPX Short- TEMPEST 155.6 Million**BULLISH
NDX Long - VELOCITY 171.7 Million**BULLISH Oversold
NDX Short- VENTURE 216.1 Million**BULLISH Double Overbought
Sector Funds:
XAU Precious Metals 100.6 Million**BEARISH Overbought
XOI Energy 46.6 Million
OSX Energy Services 87.5 Million**BEARISH
BKX Banking 66.8 Million
BTK Biotech 171.3 Million**BULLISH Double Oversold
New 3 1/2 year Low
RUT 2000 - MIKROS 106.1 Million**BULLISH Oversold
RLX Retail 26.0 Million**BULLISH Double Oversold
Telecommunications 5.5 Million**BULLISH Double Oversold
*******************************************
Tomorrow will be the first time COMP books back to back upside days for the first time since the
end of March - April 1st (4 days in a row). NDX hasn't had back to back winning days since
April 11 - 16. NDX Short Funds increased or held relatively firm. Quite revealing.
Market Wrap-Up from Bloomberg:
U.S. Stocks Rise as Investors Anticipate Better-Than-Forecast Earnings
By Robert Dieterich
New York, May 13 (Bloomberg) -- U.S. stocks rose as investors anticipated Applied Materials Inc., the world's biggest semiconductor-equipment maker, will post better-than-expected earnings tomorrow. Chip-related shares led the gain.
Microsoft Corp. and International Business Machines Corp. climbed after falling more than 20 percent each so far this year. Some investors said they may be good values as the economy recovers and corporate profits rebound.
``There's been so much damage done to some of these stocks'' that they may rally, said Kevin Connellan, head of equity trading at Northern Trust Corp., which oversees $340 billion in Chicago. ``We've gone so low that there are expectations that Applied Materials may provide a catalyst like Cisco did last week.''
The Standard & Poor's 500 Index gained 19.57, or 1.9 percent, to 1074.56. Computer stocks accounted for more than one-third of the advance. The Dow Jones Industrial Average rose 169.74, or 1.7 percent, to 10,109.66. The Nasdaq Composite Index climbed 51.69, or 3.2 percent, to 1652.54.
While better-than-forecast earnings by Cisco Systems Inc. triggered the biggest one-day surge in almost eight months last Wednesday, indexes ended the week lower as investors doubted the strength of an economic rebound.
Valuations `Attractive'
The benchmark S&P 500, down 6.4 percent this year, trades for almost 21 times forecast earnings. That's above its historical average near 15 and below the high this year of almost 26.
``Valuations are looking more attractive,'' said Ben Rogoff, who helps manage $1 billion at Aberdeen Asset Management Plc in London.
Almost 1.1 billion shares traded on the New York Stock Exchange, 17 percent below the three-month daily average. Three stocks rose for every two that fell on the Big Board and the Nasdaq Stock Market.
Applied Materials rose $1.88 to $25.58. Merrill Lynch & Co. analyst Brett Hodess said the largest maker of semiconductor equipment may report better-than-expected earnings and revenue when it releases fiscal second-quarter results tomorrow after exchanges close.
Applied Materials will likely report new orders during the quarter that top estimates as demand is rebounding in all regions and among small and top-tier chipmakers, Hodess said.
Intel Corp., the biggest chipmaker, gained $1.51 to $28.52. The Philadelphia Semiconductor Index gained 5.9 percent, cutting its loss for the year to 2.5 percent.
Investors are also looking to a meeting IBM will hold with investors on Wednesday and to Dell Computer Corp.'s profit report Thursday as events that could signal improvement in demand for computer products.
IBM, the biggest computer maker, added $2.51 to $82.19. Dell, the biggest direct-seller of personal computers, rose $1.48 to $25.36. Microsoft, the largest software maker, climbed $2.64 to $52.69.
Signs of Economic Rebound
Stocks got a boost from a study showing U.S. employers plan to add workers in the coming quarter. The survey of 16,000 companies by Manpower Inc. showed 27 percent expect to increase payrolls July through September, up from 21 percent who planned additional hiring this quarter.
What's more, sales at retailers probably rose 0.6 percent last month, the largest gain since October, according to economists polled by Bloomberg News. That may help restore confidence in an economic recovery.
Wal-Mart Stores Inc., the largest retailer, jumped $1.38 to $55.04.
SBC Communications Inc. and other local phone companies gained, trimming year-to-date losses. SBC climbed $1.60 to $32.05, BellSouth Corp. advanced $1.11 to $29.86 and Verizon Communications Inc. rose $1.59 to $40.94.
Verizon has fallen 14 percent this year, SBC has lost 18 percent and BellSouth is down almost 22 percent.
Qualcomm Climbs
Qualcomm Inc. rose $2.29 to $29.09. UBS Warburg analyst Jeffrey Schlesinger raised his rating on the developer of cell- phone technology. Handset sales may be better than expected in Korea and that India may approve the use of Qualcomm technology, he said.
Lands' End Inc. jumped $10.71, or 21 percent, to $61.73 after Sears, Roebuck & Co. agreed to buy the catalog and Internet retailer for $62 a share, or about $1.9 billion. Sears said it will sell some Lands' End products in its stores by this fall. Sears rose 19 cents to $52.
CMS Energy Corp. slumped $3.24 to $16.05. The owner of Michigan's largest utility said the Securities and Exchange Commission has asked for information on trades in which the company bought and resold power at the same price and quantity at the same time.
The announcement came Friday after exchanges closed, a day after CMS and energy trader Dynegy Inc. disclosed the so-called ``in-and-out'' transactions.
Dynegy fell for a ninth day, losing 57 cents to $9.31. Williams Cos., another energy trader, fell 94 cents to $15.55.
Reliant Plunges
Reliant Resources Inc. plunged $2.06, or 17 percent, to $9.94. The company said it boosted revenue by about 10 percent over the past three years using ``misguided'' trades of electricity and natural gas.
Reliant Resources shares dropped 17 percent Friday after the company canceled a bond sale because it hadn't disclosed trades that may have inflated sales.
Reliant Energy Inc., parent of Houston's biggest electric utility and owner of 82 percent of Reliant Resources, fell $3.86, or 18 percent, to $17.59 and was the biggest drag on the S&P 500.
Corning Inc. lost 28 cents to $6.10. Moody's cut its long- term debt rating on the biggest maker of fiber for optical networks to the lowest investment grade and said a further downgrade to junk was possible.
The Russell 2000 Index of smaller stocks rose 6.99, or 1.4 percent, to 499.72. The Wilshire 5000 Total Stock Market Index, the broadest measure of U.S. shares, climbed 173.01, or 1.7 percent, to 10,190.48. The market value of U.S. stocks gained $199 billion.
**************
Regular Series: 100% Long NDX OTC
Dynamic Series: 100% SPX Long TITAN
Best Regards, J.T. |
