• 721 days Will The ECB Continue To Hike Rates?
  • 721 days Forbes: Aramco Remains Largest Company In The Middle East
  • 723 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,123 days Could Crypto Overtake Traditional Investment?
  • 1,127 days Americans Still Quitting Jobs At Record Pace
  • 1,129 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,132 days Is The Dollar Too Strong?
  • 1,133 days Big Tech Disappoints Investors on Earnings Calls
  • 1,134 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,135 days China Is Quietly Trying To Distance Itself From Russia
  • 1,136 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,140 days Crypto Investors Won Big In 2021
  • 1,140 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,141 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,143 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,143 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,147 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,147 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,148 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,150 days Are NFTs About To Take Over Gaming?
Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

  1. Home
  2. Markets
  3. Other

Rydex Market Timers: A One Day Event

For Wednesday's FOMC announcement, the Rydex market timers were betting heavy that Bernanke and company would deliver. The Fed didn't disappoint as they continue to keep their foot on the easy money pedal. Unfortunately, the market did its best to frustrate the most, and the early morning rally fizzled intraday. The Rydex market timers have moved back to the sidelines.

The bullish and leveraged assets are now 1.77 times greater than the bearish and leveraged assets. The amount of assets in the Rydex Money Market Fund are in the middle of the past month's range. All this suggests that the Rydex markets timers were in the market briefly betting on higher prices as result of the Fed announcement. The Fed delivered; the market didn't. The Rydex market timers, like market participants throughout this rally, showed little conviction and moved back to the sidelines.

Figure 1 is a daily chart of the S&P500 with the amount of assets in the Rydex bullish and leveraged funds versus the amount of assets in the leveraged and bearish funds. This data is hidden, but the ratio of bull to bear ratio is depicted by the indicator in the middle panel. Once again, the maroon vertical lines highlight those times when the ratio was 2 to 1. The amount of assets in the Rydex Money Market Fund is shown in the lower panel. (The chart is a bit messy but one of the readers wanted to see all this data on a single chart - no problem.)

Figure 1. S&P500/ Rydex Assets/ daily

 

Back to homepage

Leave a comment

Leave a comment