Dennis; My short term outlook is mixed , but the market is ignoring
a lot of bad news and when it does that it's usually strong;
liquid driven, and goes on up more.
I feel the Fed is under pressure to prevent as much tax loss selling
as they can at this time, so they have been throwing liquid in the market with one Repo after another, that's not a sound policy,
but it will stimulate the market at least short term.
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I would play the short on MDY by ear and wait for some signs
of weakness, and get in vnifx or spy first.
I'm not positive about the dividend on MDY, I think it actually
went dividend on the 18th Dec, will pay on Jan 29th to them that
owned on the Dec 18th, so you shouldn't have to worry about that
until March. One other thing while you can buy or sell the stock
right up to the ex date, it's my understanding that to collect
the dividend you have to have it soon enough that ( the settlement
date is before the ex date ) I have had people buy some of my stocks
at the last min I know thinking they were also buying the dividend,
but I wound up with the dividend, as settlement date is when the
stock is actually delivered. Normally that's 3 trading days, so
MDY had to be bought on the 15th to settle on the 18th, if they
wanted the dividend. Or it may have been the 14th to settle on
the 17th, as the 18th is ex dividend, I get confused there and
have to ask my broker.
Any way Jan29 is a non event as far as being short the MDY and
having to pay the dividend, they have that in the bag already.
Jim
Ps When you see a lot of
search.news.yahoo.com
and the FED is real active with Repos it's hard for the market
to go down, they are helping out their banking brothers,
and running up the National Debt, which they will worry about
latter.
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