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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: donald sew who wrote (6184)2/12/1999 8:25:00 AM
From: Tom M  Respond to of 99985
 
Don/all, any comments on this chart of the Mutual Fund Cash levels as of Feb 5:

marketgauge.com

seems that we have the lowest cash levels since right before we dropped 200 S&P points last fall [sic]. Subtract from the Feb 5 levels the $1B equity outflows AMG just reported for the week ending 2/10 & it doesn't look healthy. Can anyone explain the ramifications of the Fed adding liquid for the last 5 days as to affecting the mutual fund cash levels?

Cash levels as well as regular market gauge indicators look extremely bearish. Contradicting this is the chart of specialist short interest, but as has been mentioned here before, it's hard to tell how much has changed since the chart:

marketgauge.com

Looks to me like the specialists will be using any rally to get short as they don't have the cash to hold it up.

Am I making something out of nothing here or does this look ominous?

thanks in advance,
Tom