Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: t2 who wrote (17453)	7/2/2003 3:09:00 PM
From: dvdw©	Read Replies (1) \| Respond to of 19219

This is the ratio of CUMULATIVE Rydex Bear / SHORT funds as related to Cash in Rydex Money market. If RYDEX is indeed a mirror on the market use this as an indicator, it has proven reliable in discerning Intent in the near term. In the real world Shorts are IOU's, the relationship says that Shorts at 96% proportionate cash ON HAND, are out of balance with the potential need in a positively trending market. If the market would really take off, the ability to cover at higher prices diminishes quickly the available cash pool. The problem with all TA as I see it, is that the information included in the basis, is missing key data. Since Shorts are liabilities, where is the commensurate measure of that liability side of the equation depicted in the marketplace. Just as long pools are finite, so are available funds for shorts. In a supply demand market where the tradable float is a relative constant, Shorts obfuscate this relative constant; but it goes beyond that to the ability of the shorts to cover open positions in a trend reversal. Without this information most TA is flawed for the lack of accountancy of these material facts. Understand? Not usefull for everyone unless its integrated with other indicators and systems.