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To: kash johal who wrote (34064)	3/29/2001 1:20:35 AM
From: Petz	Read Replies (2) \| Respond to of 275872

(somewhat OT) kash, I'm thinking about a new trading strategy. The Nasdaq 100 Index is currently 75% weighted in technology although, going strictly by market capitalization, it should be closer to 50%. There are 10 stocks in the Naz 100 whose capitalization has fallen so far than they each comprise less than 0.1% of the index weighting. Since the Nasdaq 100 is supposed to consist of the 100 largest-cap stocks on the Nasdaq, about 30 of the companies no longer deserve to be there, and many mid-cap companies that were thrown off of it in the 98-00 run-up may wind up replacing them. These stocks are likely to be removed from the index in the near future, which means that the QQQ trust has to sell their shares in them within 3 days of them being removed. (The rule according to the Naz site. Another detail there says that companies are added and removed as often as monthly) As you know, there's a huge amount of shares contained in the QQQ trust traded on the Amex. So I am thinking of shorting 100 shares of each of these companies. With a little more research I could probably find 20 Nasdaq stocks that have larger capitalization than the median of the stocks currently in the index, so perhaps I should allow myself some discretion and short 5 that will likely be removed and buy 5 that might be added. Petz