Tuesday, January 25, 2011

Long & Short Mutual Funds Ratio


This is updated from the December 11, 2010 posting...
This chart is from March 2009 to the present...It is the ratio of the market cap in long funds divided by the market cap in long funds plus the market cap in short funds...
Note that this ratio is currently higher than the level it was in April 2010 before the market corrected into July 2010...
This does not mean that the market has to correct now, it can advance from here, but, we should exercise some caution...Note that the market will always do what the market wants to do...It will always try to leave the station with the fewest number of people on board as possible...
We are still holding our short position from the Trend Following Signal of January 19,2011 and we will wait for a new signal before we reverse our position... 
 
Past performance is not indicative of future results.

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