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Strategies & Market Trends : MP - Market Pulse -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (726)	7/18/2001 10:25:06 AM
From: JRI	Read Replies (2) \| Respond to of 1328

Les, do you view Rydex's message as bullish as J.T.? If not, where's the flaw in J.T.'s logic?

To: Les H who wrote (726)	7/18/2001 11:03:06 AM
From: John Madarasz	Respond to of 1328

Les...yes. I'm excerpting this very brief passage only about the way Carl uses the ratio's, in respect for his copyright wishes. I'd urge anyone interested in learning more to visit the site, and subscribe to the very affordable $10 monthly fee to read more about it, and take advantage of the wealth of information. Decision Point calculates and charts three Rydex Ratios: MONEY MARKET + BEAR FUNDS / BULL FUNDS + SECTOR FUNDS: For our purposes, this is the "official" Rydex Ratio -- it encompasses virtually all the money in the Rydex Fund group. Because some Rydex trades are executed through brokerages, we also track the net cash flow into and out of Rydex, which allows us to estimate an "inferred" money market amount. The inferred money market calculation assumes that cash leaving Rydex is going into brokerage money market accounts outside of Rydex, and that it will probably be coming back into Rydex funds as soon as investors take a more definite bullish or bearish stand. This is not entirely true, of course, but we believe the estimate is better than nothing. BEAR FUNDS / BULL FUNDS: This ratio is more subject to distortion because bullish money can go into certain sector funds that may be performing well; however, it does measure the activity of investors engaged in pure index plays. URSA / NOVA: We still calculate this original ratio for those who like to follow it, but we believe it is too narrowly focused, and that the other two ratios provide a more accurate view of sentiment. I think these ratios are less subjective, since they take into account a wider view of the $, rather than focus on specific fund counts which might lead to less than objective conclusions decisionpoint.com