Why the Relentless Rally Could Be Ending Soon
Daily Profit



  • I'm hosting an exclusive online video event, "Profiting from Crisis in Europe". Investors are scratching their heads trying to figure out how to make money in the markets with Europe's debt crisis seemingly expanding everyday. Go to http://www.100kportfolio.tv/video to find out more.


The relentless, ongoing rally that has been ongoing since mid-December has now pushed the Rydex family mutual funds up to historic levels.

The chart from acclaimed analyst Jason Goepfert displays the Bull Ratio for all of the Rydex funds.

As you can see the Rydex All Index Bull/Bear Ratio has moved above 4.0 which indicate that for every $4 invested in a bullish fund there is $1 invested in inverse or short-biased funds. The only other time this has happened was May 2, 2011.


Conveniently enough SPY is back at the highs of May 2. Will the market's fate be the same and turn sharply lower or will it continue to surge higher? Probabilities say, the former.

Posted 02-10-2012 10:25 AM by Ian Wyatt
Filed under: , ,
Related Articles and Posts