Replies to post #22835 on Profunds index and sector trading (PRO)

[odiemutt]

Steve,

If bond market closed here, what you you guess the %loss to be in the rydex rising rates fund. Taking a hammering today on them. Guess I'm looking at a well over 1% loss.

[chainik]

Sorry, down tomorrow.

<there are many that think we dont stop here for anythign but a few days of sideways to down before continuing up>

Sure, might be the case. However, after such a strong advance a pause would be nice.

One possibility is a decline that is much stronger than expected by the majority. Hussman put it nicely:

<the market's modest 2004 performance left managers very eager to chase stocks during the recent rally, in an attempt to achieve decent comparative returns. Now that prices are elevated, there may be some tendency to sell equally quickly in order to defend the crumbs that have been so hard won>

Personally I think it is unlikely.