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Strategies & Market Trends : The Player's Club -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (2960)	12/16/1999 2:53:00 PM
From: Defrocked	Read Replies (1) \| Respond to of 11513

Yes, but by shorting the SP500, you're indirectly shorting NDX. Just look at the weights and consider the "leadership" impact the Tech and Comm. sector has. Also note that only 15 stocks account for 32.6% of the SP500 and over half are in Tech&Comm. IMHO indexing is not providing the diversification the theory was founded on. SPX Weights Wgt. Cum. 1 MSFT 4.893 4.893 2 GE 4.022 8.915 3 CSCO 2.703 11.618 4 WMT 2.542 14.16 5 XOM 2.441 16.601 6 INTC 2.254 18.855 7 LU 2.036 20.891 8 IBM 1.667 22.558 9 AOL 1.604 24.162 10 C 1.53 25.692 11 SBC 1.467 27.159 12 T 1.449 28.608 13 AIG 1.39 29.998 14 MRK 1.371 31.369 15 WCOM 1.243 32.612 Tech and Comm. Wgt. Cum. 1 MSFT 4.893 4.893 3 CSCO 2.703 7.596 6 INTC 2.254 9.85 7 LU 2.036 11.886 8 IBM 1.667 13.553 9 AOL 1.604 15.157 11 SBC 1.467 16.624 15 WCOM 1.243 17.867