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Strategies & Market Trends : Stock Mania ! - Mutual Funds that can short. -- Ignore unavailable to you. Want to Upgrade?

To: Tomsr who wrote (83)	5/6/1998 10:40:00 AM
From: Knighty Tin	Respond to of 129

Tomsr, The Spyder and Diamond are actually traded just like stocks with one huge exception: you do not need an uptick for short selling. You have to pay commissions to a broker, but with Brown and Co. now at $5 a trade, that's no big deal. And the Spyder has so much volume that trading is an instant deal and borrowing shares is a piece of cake. The Diamonds are much less popular, but still active enough for individuals. Sadly, the newer S&P Midcap Index, MDY, is a little shaky on the volume front. I would like to see more activity in that one. BTW, if you short these, you should receive a rebate from your broker of something like 70-85 pct. of the money market rate. It is hard to get, but you have to fight them. I lose more often than I win, but I do all my short selling with the brokers who pay rebates. MB