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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: LastShadow who wrote (10389)	6/18/1998 10:10:00 PM
From: j g cordes	Read Replies (1) \| Respond to of 120523

LS and Jenna, a considerable thanks for continuing to pump out great ideas for everyone to consider trading. Keep up the great work. Jim

To: LastShadow who wrote (10389)	6/19/1998 12:18:00 AM
From: LastShadow	Read Replies (2) \| Respond to of 120523

Russell Index This is abouta week late, but every year in Mid June, Frank Russell reworks his Russel 1000 and 2000 indexes - adding new stocks and removing some dogs. Since its late I will just say that stocks going out of the list go down in price, and those being added go up. I am going to try to determine what some of the changes are, but one very important fact is that a couple of weeks after the index schanges and all the small cap stock prices go up or down - they just about all reverse and return to whatever level they were at my Mid July. The obbject would be to go long on the new ones and short the ones being dropped, and then July 1st, you reverse those postions and exit completely by mid July. Alternately, and what I usually do, is just wait for the stocks I want to accumulate to drop and get them cheap. The reason all this happens is that the mutual funds that follow the Russell indices have to adjust their holdings to match the index's stocks. The large buys/sells cause havoc forawhile before it all settle back down. A preliminary list is avilable at russell.com and that should be about 95% accurate. If someone knows of one going on or off, post it please, as I am not sure I will have the time to do it this year. lastshadow