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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA

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To: Baton who wrote (16293)2/13/2003 3:25:49 PM
From: Steve Lee  Read Replies (1) of 19219
 
You have to ask yourself two questions:

1) Why would anyone hold a rydex long fund rather than an ETF?

2) Why would anyone hold a rydex short fund, rather than shorting an ETF?

There are much better answers for Q2 than there are for Q1. That is part of the reason why Rydex long funds have been shedding dollars as a trend.

Having said that, there has been a dramatic and extreme recent increase in the holdings of bearish Rydex funds. Although it is not one of the stronger indicators, you are right that shorts should use it as a note of caution.
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