Tuesday, June 29, 2004

NOTE:  despite our best efforts at protection, we have been infected with a virus that is affecting some of our systems.  The intraday charts will be updated as soon as we can resolve some of these issues. 10:39:14 AM

In what can only be described as a bad sign, Rydex traders added $50+ million to the bullish index funds yesterday, with $23 million going into the leveraged bull funds (see the Rydex charts in the subscriber's section).  Bearish funds lost $10 million, and leveraged bearish funds remained about even. Also, our Rydex Beta Chase Index, which shows us how aggressive these traders are by monitoring the asset shifts among the high-beta (risky) and low-beta ("safe") funds, is over 7 as of last night, which basically means these traders are 7 times more fond of risky funds than safe ones.  I would like to see this shoot over 10 before becoming outright bearish, but seeing this type of activity after a day like yesterday is NOT encouraging. 9:02:16 AM