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.

Technology Stocks : INTEL TRADER -- Ignore unavailable to you. Want to Upgrade?

To: Berney who wrote (2573)	4/23/1998 5:09:00 PM
From: MonsieurGonzo	Read Replies (1) \| Respond to of 11051

Berney; RE:" SOX.X F/A " I seperate the chips from the semi-equips somewhat, using a ratio to divide capital between the two sub-sectors. TER is really an electronic test equipment company - again, different. Of the ChipStocks, Berney, here is the 60d capital gains - 60days LEAPS +51% AMD +50% ADI +31% TXN +31% LLTC +30% LSI +25% XLNX +23% SOX.X INDEX AVG +15% LSCC + 8% INTC + 7% VLSI + 2% MOT + 2% MU - 2% NSM Berney - I get the feeling that you're looking for someone to marry! (^_^) We have F/A, and that's great for 18+ months, I suppose. Then we have T/A, and that's great for shifting stuff around at tops and bottoms. What we need to come up with, Berney, is P/A... Performance Analysis First, you ain't gonna hold this thing for more than 18 months, so forget capital gains taxes - we be talking realized gains/losses from sale of stocks. Second, what we're gonna do is this: (2) Allocate X dollars to the SOX.X sector and Buy SOX.X Index LEAPS F/A told us how much dinero, X, to put into SOX in the first place. T/A will tell us when to move SOX deeper in-the-money, or further up the leverage chain. (3) Now, manage the ratio SOX:STOX, say SOX:STOX = 80:20 or something. P/A tells us how much dinero, X(i), to put into each STOCK(i) LEAPS. The SOX.X index is weighted by capitalization (some indices are simply weighted by share price). We should be able to beat the SOX.X by weighting high-P/A index components in the STOX mix. Again, all T/A can do is attempt to reveal timing. It's a lot to manage, within just one sector. I'm starting off by simply buying something in the main sectors at times that look more or less propitious. Then I will adjust the ratios of say, SPX:XOI:OSX:CEX:DRG:BTK:HCX:BKX:XBD:FPP:SOX etcetera. The indices grow, so I consider them better for LEAPS. Yeah, I know it's conservative, but they're leveraged, liquid, and easy to measure and monitor. Oh man, I'm ramblin' on, and MadameGonzo wants to go out and play. -Steve