Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: thisMatter who wrote (19171)	6/25/2006 10:35:46 PM
From: DEM	Read Replies (1) \| Respond to of 19219

For thought, we may want to consider this is the 1st time the ETFs being offered will be inverse to the market, or going short. Sure you can short an ETF in a regular trading account, but now every IRA investor can go short the spx, ndx, dow, and midcaps (sh, psq, dog, myy). This could also affect the way we have viewed Rydex/profunds in the past as well, because now all accounts can be short with intraday stops, rather than twice per day cut offs. No real volume on these new 8 etfs last week during the launch, but something to keep an eye on. FWIW.

To: thisMatter who wrote (19171)	6/26/2006 12:27:58 PM
From: James F. Hopkins	Read Replies (2) \| Respond to of 19219

RE>It basically says that new ETFs may indicate a market high, << Very likely true just like in the past when we got a flood of IPOs.. A lot of new stuff gets it's money from the selling of other stuff, this shifting of money has an overhead that often is more than the new money coming in can offset. ---- All in all for the market to go up it takes a lot of new money, in fact it takes new money for the market to just hold it's own, as the net cost of money flow runs about 8%to 10%.( comish and spreads and other fees) The market is not a net balance of Buyers vs Sellers there always has to be more buyers or it will go down. Jim