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Strategies & Market Trends : Ahh Canada - 2 out of 3 ain't bad -- Ignore unavailable to you. Want to Upgrade?

To: Cush who wrote (3956)	1/7/2002 4:07:15 PM
From: Michael Watkins	Respond to of 5144

The difference between XIT and a thinly traded stock is that XIT is based on the valuations of other stocks - most of which are trading in sufficient volumes. Myself I will not trade stocks that trade less than 2M shares daily, average, on US markets. I have to make exceptions in Canada obviously. But XIT, XIU, etc are quite different, in that their price movement is based on the movement of other stocks. The only downside to XIT is that with less daily volume, the bars are a little wonkly if one is a traditional chartist or candlestick oriented analyst. Moving to a weekly chart makes the situation better. Or, using a comparable index for charting and placing orders accordingly. The only real downside to the lower volume is potentially loose fills on entry and exit however if you are position trading these and not daytrading, that is less of a problem. Mike