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

To: J.T. who wrote (9056)	10/20/2001 12:18:19 AM
From: J.T.	Read Replies (4) \| Respond to of 19219

Rydex Total Assets Update for Friday, October 19th, 2001: Regular Series: SPX Long - NOVA 246.0 MillionBULLISH SPX Short- URSA 265.7 MillionBULLISH Inversion NDX Long - OTC 837.0 MillionBULLISH NDX Short- Arktos 96.5 MillionBULLISH XAU Precious Metals 48.1 MillionS.T. BEARISH (technicals outweigh sentiment read) Energy 35.3 Million Banking 27.4 MillionBULLISH Biotech 332.7 Million Money Market 1.379 BILLION ***************************************** Dynamic Series (200% correlation to Index) SPX Long - TITAN 78.2 MillionBULLISH SPX Short- TEMPEST 122.5 MillionBULLISH Inversion NDX Long - VELOCITY 139.5 Million NDX Short- VENTURE 102.4 MillionBULLISH ********************************************* How many trading days in the past several weeks has the market been down deep in da hole virtually all morning and into a good part of the afternoon only to fight back and close higher across the board into the bell. The market has had a barrage of bad news thrown at it day after day yet we continue to grind higher. This market will continue to climb this wall of worry as the participants who pay the uncomfortable price of admission to be long get rewarded while the easy play short side with all the negativity justifying the bear position witness erosion of profits grow like a cancer. Gold/XAU is in serious technical trouble. After blowing out of the XAU only two days ago at the countertrend top XAU 56.19, the XAU has surrendered two crushing down days closing today at the bottom tick at XAU 52.74. The open gap at XAU 51.98 - 52.60 (10/11 10/12)is almost a lock to get filled. There are several problems with gold and gold stocks right now where we could go into an immediate hard and painful downdraft for Bulls before reversing back up. A)Gold Bullion support at $277 - 278 has the feel of a heavyweight fighter who has no legs left to stand before overhand right stand ready to knock him out. Gold, the hedge against inflation, war, rumors of war, instability or uncertainty, has had everything in its favor and yet has failed to capitalize on a move higher. The point of least resistance here is down that will shake up even the most staunch gold diehards. NYSE Spot Gold closed at $279.20 after hitting an intraday low of $277.60. Thursday close was $278.30. If they kamikaze and take out 277 support, the next huge shelf of support is around $265.00. Then talk of death row $252 support all over again. B)The lead gold sled dog Johannesburg All Gold Index registered a lower high on Thursday 10/18 close at JSE 1,328.60. The previous high was 10/08 @ JSE 1,382.70. Today JSE opened up a nasty downside gap open to close at JSE 1,291.90. This opens up a pandora's box for additional downside open gaps dead ahead. The problem with JSE is it has Swiss cheese written all over it with 9 lower open gaps below and it is quite conceivable that we could fill the first 3 gaps in a week: 1)JSE 1,234.60 - 1,250.90 (10/1 - 10/2) 2)JSE 1,183.90 - 1,189.20 (9/26 - 9/27) 3)JSE 1,154.40 - 1,156.30 (9/25 - 9/26) 4)JSE 1,103.70 - 1,138.00 (9/10 - 9/18) 5)JSE 1,089.70 - 1,092.60 (4/24 - 4/25) 7)JSE 1,055.90 - 1,059.10 (4/6 - 4/12) 8)JSE 1,030.80 - 1,037.20 (4/4 - 4/5) 9)JSE 977.80 - 990.10 (4/3 - 4/4) C)Once the immediate XAU gap gets taken out XAU 51.98 - 52.60, there is nothing to stop the train wreck from assaulting the forgotten other gaps in the XAU 40's before reversing back up with minimum partial fill of gap 1 on deck: 1)XAU 47.79 - 48.46 (4/3 - 4/4) 2)XAU 45.90 - 46.05 (2/15 - 4/3) 3)XAU 44.52 - 44.84 (11/24 - 11/27/00) 4)XAU 41.85 - 42.07 (11/17 - 11/20/01) Regular Series: 100% Long SPX NOVA Dynamic Series: 100% Long SPX TITAN Best Regards, J.T.