This Rydex Cash Flow Ration (RCFR) looks interesting and is pointing to a bounce on Wall Street.
The RCFR is the cumulative net flow of money into Rydex money market and bear funds divided by the cumulative net flow of money into Rydex bull and sector funds, it’s therefore an sentiment indicator
When the public is becoming more bullish on the stock market its demand for bull and sector funds will increase relative to its demand for money market and bear funds, thus leading to a fall in the RCFR
But when the public is becoming more bearish/cautious with regard to the stock market its demand for money market and bear funds will grow relative to its demand for bull and sector funds, thus leading to a higher RCFR
The only problem is that the whole damn market seems to be going for a bounce........
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