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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: bobby beara who wrote (4133)	8/16/2000 2:43:02 AM
From: J.T.	Respond to of 19219

Rydex Total Assets Update for Tuesday, August 15th: Regular Series: SPX Long - NOVA 595 Million SPX Short- URSA 275 Million NDX Long - OTC 3,120 BILLION NDX Short - Arktos 135 Million XAU Precious Metals 49.1 Million Money Market 1,189 Million ****************************************** Dynamic Series -(200% correlation to index) SPX Long - TITAN 53.3 Million SPX Short- TEMPEST 34.2 Million NDX Long - VELOCITY 66.9 Million NDX Short- VENTURE 23 Million ********************************************** Last Rydex Update I said we were due for a bounce as SPX Long NOVA asset levels were at their lowest levels since end of May. Sure enough, the SPX moved up 31 points over the next two trading days before giving back 7 points today. Now SPX Short URSA Fund total assets 275 million have not seen these low levels since July 20th when the SPX closed at SPX 1,495. Today we closed at SPX 1,484. The lowest short SPX ursa asset levels are bunched in at 263 to 265 million on June 13-15 when SPX closed at 1,469-1,478 area. Last Thursday it was the low assets in SPX Long NOVA Fund. Today it is the low levels in the SPX Short URSA Fund. The ferocious rapidity in which money switches from short to long continues. What does all this mean? We are due for a very short pullback of 1, maybe 2 days. This will bring these RSI levels back down to lower midrange. After this smart pullback, the SPX will be in position to assault old highsSPX 1,527. SPX is following in the shadows of the DOW's strength but on the wings of BKX and UTIL. Regarding the broad market The bottom line is this: The DOW DIAMOND top formation is about to get KO'ed once and for all. We are in the same interest rate scenario as last fall when the FED had to put things on hold until we got thru Y2K "scare" uscathed. The market responded by rallying hard right into the end of the year. Now, whether the Fed raises 25 basis points next week or not is irrelevant even though the gurus think the Fed will remain on hold. After next week, the Fed will be on hold until after the elections and this will provide the impetus for another leg up. The technicals of the market are in place as the Bears could not seize the moment and KO the Bulls over the last few months. In this framework, in addition to SPX, the DOW has been in this range since March 1999 DOW 9,800-11,730 and is about to bust out of it to the upside. Maybe the DOW tests the south side of DOW 10,900 intraday one more time, maybe it doesn't. After this pullback, the DOW will zone in on this DOW 11,400 target while the SPX highs get taken out. DOW old highs should get taken out by the end of September. Best Regards, J.T.