Rydex Traders Very Bearish

Below is a chart of Rydex traders positioning courtesy of SentimenTrader.com

Rydex traders are positioned more bearishly than at any time since July 2009. July 2009 kicked off a 25% rally in the S&P 500. While I don't expect anywhere near that type of rally I believe the odds favor the upside.

1 comment:

Anonymous said...

I'm looking for a rally most of this week. My target was 1190. But because we are so close to the end of the month we might not hit that.

Friday will be the last trading day of the month and precedes a 3 day weekend. The market will most likely be down on Friday. No longs over the holiday weekend.

good luck.