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Sentiment: Rydex ratio needs reset


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#1 Rogerdodger

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Posted 25 February 2007 - 05:14 PM

From DecisionPoint Spotlight Chart
Rydex ratio: Changing intrepretation
ETFs are siphoning bullish funds

...ETFs and other products are siphoning bullish funds from Rydex
...Finally, notice how in the last few months bull cash flow is declining and bear cash flow is rising. This is a similar pattern to the three prior bull cash flow peaks, albeit much smaller. As in the previous cases, I think this shift is a precursor to a correction or consolidation.

...Bottom Line: The Rydex Cash Flow Ratio is probably being influenced by a significant lack of interest by investors in Rydex bull funds -- ETFs now being the vehicle of choice. This shift in emphasis will necessitate our being more cautious in our interpretation of the Ratio until we can see what kind of new pattern, if any, emerges.

#2 bobalou

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Posted 25 February 2007 - 08:50 PM

I puled my $s out,,, to use them W/ the QID QLD,sld dog .BECAUSE , I can trade them at any time of day and use a STOP...if you look at the vol. I'm not alone