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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?

To: Dave Shares who wrote (596)	7/30/2000 11:49:16 PM
From: Gersh Avery	Respond to of 10065

Thanks Dave .. As I mentioned to bobby, I was thinking of moving a set amount every time that the NDX were to move up a predetermined percentage. As it seems unlikely that the NDX would move up more than 50% from here that this would catch every single spike up in the index. I would expect to take advantage of word from Bob about time to exit by way of a statement from him about a good time to go long. I've heard several times from him that he does not wish to recommend any kind of short move on the program because of the nature of the listeners. So you feel that some straight short fund would do better than a 2x fund? Again .. thanks

To: Dave Shares who wrote (596)	7/31/2000 1:50:19 AM
From: set	Read Replies (1) \| Respond to of 10065

Dave, I believe the point you're trying to make is that to track with leverage implies setting a time frame around which to measure the tracking. Choosing a day, so percentage moves are 2X or whatever it is on a day to day basis, will not give the same results as choosing a week or a month. A silly example: If the index were to fall 25%, lets say from 200 to 150, then USPIX (to keep it simple)will rise 50%, let's say from 10 to 15. On the next day the index goes up 25% from 150 to 187.50, and USPIX should lose 50%, from 15 to 7.5. Then let's say the rest of the week is small inside days and don't amount to anything. So the net change for the week on the NDX is down 6% while USPIX is down 25%, not up 12% as would be hoped. Is this your point?