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Technology Stocks : INTEL TRADER -- Ignore unavailable to you. Want to Upgrade?

To: Berney who wrote (7336)	12/2/1999 12:26:00 PM
From: MonsieurGonzo	Read Replies (1) \| Respond to of 11051

TB:" glasperlenspiel " well, you know Berney - last year we chewed a lot about what kinda stox Gonzo should put into CORE for a year, btw, thank-you again, all your help with that... ...and this year I'm thinking about reducing number of stocks and incorporating some indices. But I haven't really decided, TB. Just chewing on it. TEL = [ T + WCOM + SBC ] : [ LU + NT ] INT = [ DT + TMX + NTT ] : [ ALA + NOK ] retail? here's what I'm chewing on now... RLX = [ WMT + HD + BBY ] : [ UPS + FDX ] ??? RLX = [ WMT + HD + BBY ] : [ YHOO + ARBA ] ??? ...TAN is a good substitute for BBY. ...freight is amplified by retail volume, but this glass bead works better with an OIL : XAL construct, imho. ...ARBA is the "B2B" bellwether; EBAY also comes to mind; ie., the flip side amplifier of retail bellwethers is ETAIL, Berney. fwiw, RLX should always be balanced by NF.X financials; eg., ( [ GE + C + AIG ] : [ MWD + SCH ] ) : (* [ WMT + HD + BBY ] : [ YHOO + ARBA ] ) DRG, you leverage pharmas : biotechs. From what I can tell, you gotta spread out the beans a lot; eg., 60:40 = [ MRK+JNJ+BMY+PFE+SGP+WLA ] : [ AMGN+BGEN+DNA+MEDI ] ...and so this (simpler) construct works well (ie., will beat the index basis) DRG ===> 60 : 40 = [ 3 x FSPHX ] : [ [MRK] : [AMGN] ] ...as well as this BTK ===> 60 : 40 = [ 3 x FBIOX ] : [ [AMGN] : [BGEN] ] interestingly, the following will beat the worst-performing index this year, UTY.X - Utilities... UTY ===> 60 : 40 = [ 3 x FIUIX ] : [ [DUK] : [ENE] ] but, you should balance (UTY = ~BONDS) such that... 50:50 = [ XOI : OSX ] : [ UTY : XAL ] ...where 60:40 = XOI:OSX and 60:40 = UTY:XAL. This is an excellent construct for preservation of kapital, especially within a tax-free IRA with DRIPs enabled. An example (with stox, rather than indices - I'm playing with index funds and index options now) would be... ( [ XON+BPA+DD : SLB+HAL ] : [ DUK+ENE+WMB : UPS+FDX ] ) ...which has around a ~2.5% taxable equivalent APR yield. -Steve