12/15/2009 Market Recap: Rydex traders are too bearish?


Cobra's Market View Private Messaging System shows:


Summary:

Rydex Bull/Bear RSI Spread chart shows that the market could be bottomed.

  TREND MOMENTUM EMOTION COMMENT - Sample for using the trend table.
Long-term Up   Disbelieve  
Intermediate Down Neutral  
Short-term Up Neutral    
SPY SETUP ENTRY DATE INSTRUCTION STOP LOSS Mechanic trading signals for reference only.
Back tested since 2002.
ST Model 12/10 L

 

Breakeven
Reversal Bar 12/10 L

 

Breakeven

 

NYMO Sell  

 

VIX ENV        
         

INTERMEDIATE-TERM: BULLISH SEASONALITY

Nothing new to say. For details please read 12/14/2009 Market Recap, seasonality wise the following 4 weeks are very bullish.

SHORT-TERM: COULD BE BOTTOMED

Hope you’ve read the After Bell Quick Summary which says there might be a firework ahead. The setup so far worked good. Just pay attention to all the failed cases: if small bar again tomorrow or the firework shoots high then falls to the ground on the same day then most likely this is a failed setup, so be careful.

FireworkSetup 

Rydex Bull/Bear RSI Spread, it’s the differences between Rydex bullish fund inflow and Rydex bearish fund inflow. See green lines in the past, so accordingly, we’re still at a market bottom. Unbelievable, isn’t it?

RydexBullBearRSISpread

6.4.3 SPX and FOMC, count green arrows, obviously a green close is most likely on Fed day tomorrow.

FOMCDayWatch 

INTERESTING CHARTS:

0.0.2 SPY Short-term Trading Signals, 4 Doji in a row, I never saw this before, something big is going to happen, no matter you’re bull or bear, just be careful. I know some may say “Bearish Tri Star”, just this candlestick pattern has almost equal chances of breaking on either upside or downside, so it’s actually not a bearish pattern.

SPYShortTerm

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