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

To: J L Segal who wrote (83284)	6/21/2002 5:55:30 PM
From: public_heel	Read Replies (1) \| Respond to of 99280

JLS re RDRT - The funds are not selling yet. The ones whose charter it is to hold S&P 600 stocks >must< sell on the close of the day of removal (next Friday). Likewise, they must buy the replacement at the same time. They probably are engaging a trading firm or institutional bank to go short in anticipation, though. This third party will then cover by buying the funds' shares at the time of removal. The volume today, and the size of the drop, cannot be accounted for just by the S&P news. Maybe there's another "shoe" to fall with this company, or maybe it was just an overreaction. Barring the appearance of that second shoe, though, I agree with you that it's starting to look awfully good.