After Friday? Yes after Friday. Marlyn's curve never lies. This is what is happening with the returns of the market. Remember the curve doesn't plot price but what price yields which is what you can spend or not depending on the direction. It is also somewhat slow to react to trends. I like that because when it does turn it generally has a little run to it before it turns again. But most important - do not use this to make trading decisions. The way I use it is to uncover hidden market sentiment - an up flowing market is easier to trade than a down flowing market.
You will note that we are still being led by tech. The Q's turned sharply about 13 days ago and while the other three tried to turn they didn't quite make it until Wednesday of this past week.
For this reason I'm pretty sure that Friday was just a freaky Friday and that we might see a couple of good up days early next week.
I added a picture to the site this weekend - a beautiful representation of Marlyn's curve documenting the daily returns of six RYDEX mutual funds - three dynamic and three inverse each for the DIA, SPY, and Q's. What this represents is the hard fact that when the dynamic funds are going up the inverse are coming down and vice versa. It is an interesting picture and now that such funds are available in ETF form they might become an interesting method of market timing - legally.
I'll be working on the curve to see if I can make it more sensitive to turns so that it can be used in that regard. I'll let you know if anything develops.
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