Is Rydex Representative

If the positioning of Rydex traders is any indication of how other traders are positioned than the shorts have grown very bold. Even if we have begun a new bear market these shorts are likely to be cleared out before another leg lower.

3 comments:

Anonymous said...

After holding up beautifully in a falling market, C is underperforming the other major banks the past 2 days. Feeling like it's capped for obvious reasons. Sold C and bought WFC - agree that the market should run in the short term.

Praguer

Tsachy Mishal said...

A temporary cessation of the selling hardly seemed like a reason to buy. I think you made the right move. Had it gone down you would be forced to sell at the end of the month before the selling resumes.

Anonymous said...

I expected C - finger to the wind - to reach at least 3.99 before earnings. And it still might. One reason was that I would be afraid to short under 4.00. Anyways, it was a profitable trade despite a down market.

Praguer