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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (13927)	11/6/2000 2:36:06 PM
From: DukeCrow	Respond to of 24042

Look what happened last summer during the S&P addition. Some of them got their heads handed to them on a silver platter. Any arb that came out unscathed is probably operating with more-than-usual caution. Exactly, Pat. That event left the arbs powerless in trying to keep a reasonable spread intact. Just too much money flowing into JDSU for the S&P 500 play for them to handle. It appears the spread has worked its way back down to ~16% over the past few days. I think the arbs run away whenever there is a lot of volatility in the market and come back when the market has quieted down. It makes sense as they can scalp ~4% by letting the spread run to 20+% and then bringing it back in later and slowly unwinding. Ali