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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (2844)	1/16/1998 11:40:00 AM
From: James F. Hopkins	Respond to of 42834

Kirk; Buying a stock that is about to go into the S&P is popular, and they will on the over all show a fast gain. BUT many funds are limited to only owning stocks in the S&P and must wait, that is what causes the pop in thoes stocks. ---------------------- I'm also good at math, and think in relative motion, it's my training as a Mariner, an untrained person will look at a radar sceern and plot what he sees..but relitive motion has to be factored in. I aced the exam on celestial navigation back in 1981 at the USCG Houston; I was at the time the frist person to ever ace that exam at that testing center. I do not know if any one has since. I've wrote programs for oil cargo, that do the whole nine yards ( expansion factors, blending factors , taking the gross and reducing it to net , as well as calculating the stability trim of the ship all in one program. !) Most any Master can do the calculations, but very few understand computers enough to write a program. Most programers can write much better than I can, but very few can understand the Math it takes to make such a program. ----------------------------------- As far as the weighting of the S&P, don't think for a minute I have not looked and took that into consideration. It's not done dynamicly and on the fly. I have some indexes of my own with the same stocks that do re-weight dynamicly, I tell you roll outs/and rollin produces a GROSS effect on the index, the Net effect in real dollars is always less. That's a fact not just some wildass theory. If you can't understand the math don't fault me, do some homework. I do not claim to be an instuctor nor do I have broad teaching skills, But I did teach a Romanian who could speak very little english, how to use a sextent and celestial navigation on a trip to Africa, mostly using a form of sign language, as I could not speak any of Romanian, I was very impressed with how bright he was, and do belive had he had the ability to out think me. The S&P uses a slight of hand to produce a better looking output on paper than if you traded the stocks with real money. It simply does not factor in or deduct the % between the losers it tosses out in relation to the gains new issues must make to offset the losers. And If it did, a lot more funds would look better in respect to it. Call Hot air by any other name it is still Hot air, and the DOW is worse with it's "fudge factor" than the S&P. I know a lot about how to use "fudge factors" every Captain is forced to use them at times. :-) Jim republic.net