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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: DebtBomb who wrote (57898)	4/28/2002 11:33:05 AM
From: Steve Lee	Read Replies (2) \| Respond to of 99280

Yes, $BPNDX could do with going a little lower to make me confident of a big rally. But it was from pretty close to current levels that it launched it's near 250 pt upward journey in Feb this year. So while it looks like the NDX is going to go down some more or base for a while, before a significant rally, I would rather miss out the last little bit of shorting opportunity, than be caught short on a move like we got in late Feb/early Mar. Will likely make a few small trades in individual bloated stocks though. Secondly, yes some bankrupt and near bankrupt techs got taken out the NDX 100 late last year and were replaced mainly with biotechs. I thought this wasn't going to do the levels of the NDX/QQQ any favours as expressed last year in a series of posts between myself and Zeev on the "Nasdaq 100 Analysis" thread starting here: Message 16675329 excerpt: I think QQQ holders get screwed when the NDX 100 is reweighted. Because the reweighting is by market cap, the real dogs get to devalue the NDX on the way down, but when they get taken out, their weighting is so insignificant that it gives the index no benefit, instead getting replaced by some other stock that has a large market cap, and by implication has already done a substantial amount of the appreciation outside of the index. It is kind of like an index always composed of last year's winners.