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Strategies & Market Trends : Z Best Place to Talk Stocks -- Ignore unavailable to you. Want to Upgrade?

To: rgood2002 who wrote (42705)	8/11/2002 12:33:45 PM
From: Joe Stocks	Read Replies (1) \| Respond to of 53068

The buys and sell for the mutual funds that track the S&P are done before the close before the switch. A second party takes immediate ownership and then transfers ownership to the fund at the close. The buys and sells are pre-arranged so it is hard to predict stock price action. I have seen stocks that are to be added go up strongly and I have seen them fall. Of cousre there is an upward bias for those being added and a downward bias for those being removed. And them there is the overbuying in anticipation of being added that can cause the stock to drop once the action is done. I usually find it better to stand aside. The best plays I have made is selling the stock being added short after the close on the day added if I see climax buying. Like EBAY and GS last month. Good luck. Joe