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Strategies & Market Trends : Jim's Nasdaq100 Special as a basket. -- Ignore unavailable to you. Want to Upgrade?

To: James F. Hopkins who wrote (1436)	10/26/1999 9:25:00 PM
From: stockycd	Read Replies (1) \| Respond to of 2103

James, Explain this to me. When MSFT and the others enter the DOW, will it be repriced at a new price? Could it really close at 10302 and open the next day at 10630? That would really mess the charts up. I know very little about this sort of thing. TIA, Chris

To: James F. Hopkins who wrote (1436)	10/26/1999 11:40:00 PM
From: OX	Read Replies (1) \| Respond to of 2103

<<the smaller caps in the DOW with their smaller float that tend to jerk it around>> Hi Jim, I think I understand what you're saying here, and I agree w/ that smaller capitalized stocks are 'easier' to push around... but it would seem that a 10% move in a $40 stock won't move the DJIA as much as a 10% move in a $80 stock... so in my view, the 4 new entries will make the DJIA more volatile (esp. since we know MSFT and INTC can move a lot from day-to-day)... It seems the 4 leaving the DJIA are smaller in price than the 4 entering. This same thinking is repeated when a DJIA stock splits. Am I thinking straight about this? Thanks.