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Strategies & Market Trends : Stocks Crossing The 13 Week Moving Average <$10.01 -- Ignore unavailable to you. Want to Upgrade?


To: James Strauss who wrote (11564)9/6/2002 10:29:52 AM
From: Bucky Katt  Read Replies (2) | Respond to of 13094
 
Jim, those crazy French are at it again>

news.bbc.co.uk



To: James Strauss who wrote (11564)9/8/2002 11:04:47 PM
From: Jibacoa  Read Replies (1) | Respond to of 13094
 
Good advice Jim.

The Rydex OTC fund (RYOCX) is available for investors looking for an advance in the NDX. In other words, it is positioned to increase in value by one percentage point for every percentage point advance in the market.

By contrast, the Rydex Arktos fund (RYAIX) targets a downward move in the NDX. It tends to increase in value as technology indexes decline.

The people at Schaeffer's Investment Research, have devised a bullish/bearish index by looking at OTC/Arktos ratio (O/A) as an indication of investor optimism about tech stocks because more assets have moved into the bullishly poised OTC fund relative to the bearishly poised Arktos fund.
On the contrary, low readings in this ratio supposedly represent investor pessimism because the Arktos fund is the subject of more relative asset allocation.
Because excess optimism can make stocks vulnerable in the short term (on the theory that capital allocated for the short term has already been allocated to the market during periods of optimism), high readings in the ratio should be viewed as potentially bearish in the short term for technology stocks.

futuresmag.com

RAGL

Bernard