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Strategies & Market Trends : P&S and STO Death Blow's

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To: Justa Werkenstiff who wrote (8577)9/29/2002 6:18:54 PM
From: t2  Read Replies (2) of 30712
 
the number one reason cited by bulls not to be bearish this week goes to the Rydex ratios

The public is buying the Rydex short funds. Do you think we are in the mirror image of the period in late 1999 to March 2000. Back then market mania reached a peak and we got our parabolic gains as the public pumped a lot of cash into the stock market.
Could that logic be applied to take the markets down from now to spring of 2003 as the public's interest in short funds suggest...meaning the fastest percentage losses just ahead of us to end the bear market...that is basically what Jeff's retrace would predict.

That would also be consistent with the fact that the Nasdaq short interest has not changed in the past year, suggesting some of the old bears are getting long, offset by the retail interest in bear funds.
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