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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: murl who wrote (14036)12/21/2000 2:30:09 PM
From: OldAIMGuy  Read Replies (1) of 18928
 
Hi Murl, The relationship of approx. 2X on UOPIX is on a daily basis. It will be quite close on correlation on a daily basis, but sort of like the difference between daily interest rates and APR rate, there's a cumulative difference that can't be guessed.

For those seriously under water with UOPIX I might make an untested suggestion..... Add 20% to the lowest price paid for shares of UOPIX in the down-turn and write that price down. Go take a look at the Portfolio Control and start reducing it until you get a Minimum Sell Market Order at the price mentioned above. Restart AIM based upon this new PC value.

This won't make you as much money as if you left everything alone. However, it will get AIM back into the Trading Game with some liquidity. Instead of a dead period of X-months you might get some profitable LIFO trades to help lower your average cost per share.

Please remember that this is a Suggestion and not a Recommendation. It's one possible way of handling the situation. If your cheapest price of purchasing was $40, then you would look at your first minimum order at $48. That will happen sooner than the $71 you mentioned. It will also be a LIFO profitable trade. Just not as profitable as you might have liked under better circumstances.

I know that CNBC's been doing nasty comparisons to the '69-'79 period and showing that previous peaks took YEARS to be revisited. I agree it's going to take SOME time to revisit NASDAQ 5000, but I highly doubt that it's going to be the same span of time as the '69 bubble. Instead, take CNBC's current negativism for what it is - a way of keeping viewers tuned in with scary talk. They don't have a clue....

Best regards, Tom
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