Rydex Total Assets Update for Friday, June 7th, 2002:
**Revised for Correction
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Money Market 1.685 BILLION**BULLISH Double Overbought
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Regular Series: (100% Correlation to Index (Nova 150%))
SPX Long - NOVA 217.1 Million**BULLISH Oversold
SPX Short- URSA 327.9 Million**BULLISH Double Overbought
NDX Long - OTC 586.0 Million**BULLISH Triple Oversold
Lowest Close Since October 1998
NDX Short- ARKTOS 145.8 Million**BULLISH Double Overbought
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Dynamic Series: (200% correlation to Index)
SPX Long - TITAN 86.1 Million**BULLISH Double Oversold
SPX Short- TEMPEST 213.5 Million**BULLISH Overbought
Near/At All Time Highs
NDX Long - VELOCITY 147.0 Million**BULLISH Double Oversold
NDX Short- VENTURE 215.9 Million**BULLISH Double Overbought
Sector Funds:
XAU Precious Metals 107.6 Million**BEARISH Overbought
XOI Energy 25.6 Million**BULLISH Triple Oversold
OSX Energy Services 28.4 Million**BULLISH Triple Oversold
BKX Banking 41.3 Million**BULLISH Double Oversold
BTK Biotech 150.6 Million**BULLISH Triple Oversold
Near New 3 1/2 Year Low
RUT 2000 - MIKROS 49.5 Million**BULLISH Triple Oversold
RLX Retail 28.4 Million**BULLISH Double Oversold
Telecommunications 5.7 Million**BULLISH Double Oversold
SOX Electronics 51.4 Million**BULLISH Double Oversold
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To the Bears dismay, no capitulation close and no break of close of SPX 1,016 - 1,018. SPX intraday low hit SPX 1,012.49 down roughly 17 off the INTC warning in the first half hour of trading, but by the close clawed its way back to down less than 2 points to SPX 1,027.53. Bears waffle in a sea of their own foam out of their mouths as their party continues. Truth be known, the party may have just reached its final culmination if not end for the Bears to this latest market sell-off before counter-trend V-shaped reversal out of this hole.
The winds of change are swirling as the one safe refuge year to date got crushed. XAU got spanked down 5.95% to register its lowest close since May 16 to XAU 78.75 down $4.98 at the bottom tick. The 5 day RSI on the XAU is now oversold at 25.46 and fast approaching double oversold territory. I expect a gap upside open to relieve some of this oversold momentum Monday morning, but the selling will resume by midweek latest.
Meanwhile, back at the ranch, The NYSE members have **MATCHED 1995 year end consecutive week accumulation conundrum and now have amassed 777,844 Million Shares bought and buried 14 out of the last 15 reporting weeks since Feb 15 with two week lag delay. Doubly explosive is the specialists continue to get outshorted by the inmates as the public continues its short binge now 22 weeks in a row every week in 2002 since the 12/21/01 reporting week. Never in the history of the stock market have you had this massive depth of accumulation by the NYSE members AND public shorting above the specialists AT THE SAME TIME. This HAS NOT consecutively happened EVER with the deadly combination of public orgy of shorting and huge quantity of accumulation by the NYSE members compressed in a short period of time. NOT EVEN CLOSE.
And with Friday closing out the week down on the major averages, we may get our highest Bearish percentage reading from Investors Intelligence since November last year(and lowest bullish reading since December last year) which would confirm the Bullishness building everywhere else on the sentiment front.
Bears are looking for the September 21 break of lower lows, and I continue to preach to the diminishing choir that September 21 was THE LOWS.
The bottom of the DOW 21 day 3 1/2% exponential trading band holds again like a champ as the DOW reversed well off the lows to finish at DOW 9,589.67 down 35 points. DOW theoretical low was 9,416.33 and intraday bottom was DOW 9,472.54 right on the bottom of the band.
The counter-trend reversal back UP begins next week with no respect for the Bears the same way it treated the Bulls the last few weeks.
Happy hunting.
Regular Series: 100% Long NDX OTC
Dynamic Series: 100% SPX Long TITAN
Best Regards, J.T. |
