– Glossary

Rydex OTC/Arktos Ratio

This is a ratio of the assets in the bullish OTC fund (which mirrors the performance of the Nasdaq 100 Index) and the bearish Arktos fund (which moves inverse to the Nasdaq 100 Index) This ratio provides an indication of sentiment toward the technology sector. More dollars pouring into the Arktos fund relative to the OTC fund results in a lower ratio that suggests pessimism (and a potential bottom in tech stocks). Relatively more dollars going into the OTC fund (i.e., a higher ratio) will signal a possible tech correction or consolidation, as buying power is close to being exhausted.

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