SOX is the semiconductor index. It is to semiconductor stocks what Dow Jones is to Industrials. It is a bellweather that allows you to quickly check where the market is moving. In this case, the semi market as measured by the SOX was shooting up, and VTSS, a quality semi maker if ever there was one, wasn't moving (yet). If all of its ilk were moving up, it seemed likely that VTSS would go the same way, so I grabbed some on the spur of the moment, and it turned out to be a good idea (this time). In other words, the dog was moving fast, but the tail hadn't moved yet, so I grabbed it, and sure enough, I got dragged along with the dog. 8^)
Some other high-tech indexes are XCI (American Stock Ex Computer-High Tech Index), and MSH (Morgan-Stanley High Tech Index). MSH seems to be more sensitive to networking stocks. Considering that most high tech stocks are on the Nasdaq or the NYSE, I have no idea what is in the XCI index. There is also RUT, the Russel 2000 index, but it contains everything but the kitchen sink - and probably that too. You can trade options on any of these indexes, by the way. The SOX seems to be the most volitile.
Good luck, and happy trading,
Carl |
