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

To: Jeffrey S. Lillie who wrote (91688)	7/5/2002 1:14:58 PM
From: DlphcOracl	Read Replies (2) \| Respond to of 99280

Jeffrey S. Lillie: Yes, the Velocity 100 fund is long the NDX 100 index 2:1. I took my position on Tuesday at the 10:30 EST pricing when Nasdaq was at 1370. By today's close, I will be up approximately 15% on that position. As I stated, I thought this was too much of a good thing and went 100% cash to see whether Monday has any follow through. If you are considering using Rydex or ProFunds as a TRADING vehicle, be VERY careful. Because they are mutual funds and do not trade in real time, you cannot get out of positions quickly. In a leveraged fund, you can be down 4-5% before you have a chance to exit a position at the early AM pricing. I bought on Tuesday because I saw a run up to 1550-1600 and normally would have just held through the weekend. However, with Nasdaq up 8.5% from low of 1335 in just 2 1/2 days, I thought discretion was the better part of valor. If we gap down on Monday, I will probably re-establish another position at the early AM pricing, albeit smaller, and then see how the remainder of Monday plays out. P.S. Note that the leveraged Rydex funds trade twice a day, once in the AM at 10:30 EST and after the market close. The non-leveraged Rydex funds and ALL of the ProFunds only trade after the market close.