As you know, I closed out SEBL yesterday (following your head fake), and in retrospect I'm glad I did. I expected more of an initial move from the S&P addition, which didn't really come. I don't know how long index funds have to reflect changes in the S&P, but when AOL was added it took quite a while for them to get squared. Initially the stock ran fast, and I assumed it was the S&P addition, but in reality much of that movement was from momentum.
My guess is that as long as funds reflect the index by the end of the quarter, they are OK. As week as the market is, they will have many opportunities to buy on weakness, so I don't look for large moves in SEBL from the S&P addition, except perhaps towards the end of May or the end of the quarter in June, if some funds are still short.
BWDIK |
