Bulls versus Bears

Long before there were leveraged ETFs, the only leveraged play in town were the mutual funds of Rydex. Now here’s something strange: these funds seem to have become the perfect contra-indicator for the markets; if the bears are active (the red line) than the indices are climbing and if the bulls (the green one) are on top than the trend is down.
How come?
Stupid investors who systematically take the wrong side of the fence?
Or something else – as there are: these fund are used as a hedge. What makes sense.

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