This is an 12:15 intraday update of Turov on Timing for Tuesday, August 7, 2012.
I’m going to repeat the following on the overnight hotline because I realize not everyone reads the intraday messages:
I keep track of the Rydex twice a day funds since overnight news is most often reflected in gap openings AND if the news is significant, the gap will hold until the 10:45 a.m. pricing. Over the past ten years, there have been only two times (prior to today) when the NASDAQ 100 2x fund was higher at the 10:45 a.m. pricing than at the previous day’s 4:00 pricing for nine (9) consecutive trading sessions. The first occasion was December 30, 2004. The Rydex NASDAQ 2x fund closed that day at 113.95. By January 25, 2005 it had declined to 95.60, a drop of 16%. The second occasion was September 17, 2009. The Rydex NASDAQ 2x fund closed that day at 76.69. By October 2, 2009, it had declined to 71.32, a drop of 7%. Today is only the third time in the past ten years that the NASDAQ 100 2x fund was higher at the 10:45 a.m. pricing than at the previous day’s 4:00 pricing for nine (9) consecutive trading sessions.
Thanks for the opportunity to be of service, and I’ll update again sometime during today’s trading session.
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