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 : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: chainik who wrote (130564)	3/10/2006 7:08:55 PM
From: Shack	Read Replies (2) \| Respond to of 209892

You just knew I couldn't let that one go.-g What follows is my opinion, nothing is fact in the ongoing Rydex debate. Anyways, it would appear to me that he and Swenlin are smoking from the same bong.(-g/ng) I like Jason, but he (and Swenlin for that matter) are missing the key point of these Rydex charts...the downward moves in the SPX that correlate with these divergences are simply not sustainable! Notwithstanding that he is looking at at a whopping sample size of one previous divergence, the conclusion I come away with is that the money flows are just resetting themselves for the next move up. Do Jason and Carl notice that the corrections during these divergences were shallow and weak? Do they not notice that the SPX continues higher eventually? With regards to Rydex ratios, every correction we have had during this 3 1/2 year bull has been met by disproportionate money flows away from the bull side and towards the bear side...read: fear.....read: bullish! He hypothesizes that these traders are "risk-averse"....so what? So we have risk-averse folks selling into a rising market, to me that would be unequivocally bullish and so far, with the SPX near 5 year highs, the charts would agree with me. How can this create a sustained down move? Who would be left to sell? This is the recipe for lows, not highs. Picture me as the bull at the top of that page.-vbg