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Technology Stocks : All About Sun Microsystems

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To: High-Tech East who wrote (32970)	6/21/2000 2:43:00 PM
From: Steve Dietrich	of 64865

... the commercial hedgers (the institutions) are net short the S & P 500 futures by a larger margin than has existed since at least sometime in 1994 (or earlier) ... usually, the individual investor is the opposite from them, and mostly wrong ... Don't know if this applies but i recently read (in a Cramer article i think) that the institutions will short the underlying stocks when customers buy a tradable index, like QQQ. They do this so that (like Vegas does by setting spreads so that bets on either side will be about even) they can be sure of their commission without taking a position on how the index will perform. Is this so, and is it possible that this is what you're observing? And if institutions indeed do this type of thing, isn't buying indexes somewhat self defeating? Steve

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