We are ST overbought but there's still room to run...especially gold stocks

Rydex traders have stood pat again. The level of assets in bull funds and money market funds give room for further gains.

You would think that with all the hoopla surrounding gold these past few days that people are rushing into gold stocks....you'd be mistaken. Take a look at how rydex gold traders have behaved. The first chart show the price of the rydex precious metals fund, the second shows cash flows into the fund. Notice how in the past, spikes in cashflow coincided with ST tops in the gold fund. There is no such spike this time which means from a contrarian perspective there's still a lot of upside potential in the short term.