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Strategies & Market Trends : Nasdaq 100 Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Zeev Hed who wrote (7)11/18/2001 2:50:47 PM
From: Steve Lee  Read Replies (1) | Respond to of 238
 
I am not necessarily saying the NDX 100 is mishandled, but that by its very nature, QQQ holders are disadvantaged. The purpose of the discussion is to have insight into where the NDX 100 or QQQ might go long term, rather than to make a judgement of whether the rules are good or not.

If a stock were to be removed from the index as soon as it is ranked 101 by market cap of the entire pool of eligible stocks, then the exit rules would be more similar to the entry rules.

As it stands, you have to reach rank 100 or better to get in, but you don't get thrown out until you are on the verge of (or even in) CH11.

Of course, such a change would open up whipsawing as stocks 100 and 101 constantly swapped places, and the marginal stocks would be manipulated to get in or out. However, some moderated version of my suggestion would be practical.