The Last Hoorah

Good Morning. The good news for the market is that Rydex traders are still fighting the rally and the market will not be maximum overbought until the end of the week. The bad news is that we finally saw some call buying yesterday as traders began to embrace the rally and the market is no longer oversold.

I believe the most likely scenario is that the rally lasts through the end of the week. I have noticed that Rydex traders like to buy pullbacks and they seem to be a decent barometer for other traders. We should see a pullback sometime this week that traders buy into with a final top at the end of the week or early next week. As the week wears on we should start hearing chatter about a year end rally. That should mark the top for 2009.

1 comment:

Anonymous said...

I'm a Durex trader.