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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: Monty Lenard who wrote (24885)8/22/1998 10:34:00 AM
From: James F. Hopkins  Read Replies (2) | Respond to of 94695
 
Monty; I believe you have the picture, and can visualize that real
BIG money traders have to have very liquid stocks to trade in
and particularly "out of" to keep from shooting themselves in the
foot with large sell orders.
Hence they can use something like
the magic 10 as a basket to MO MO market time and cream the index.
You see all the index funds tracking the S&P set up the MO MO,
and anyone with something on the ball can narrow that field
with top cap stocks in such a way as to exploit the index funds.

Then it's just a matter of being ahead of or close behind the
S&P curve but having a select few of the most liquid ones that must consistently be traded by the index funds. Being the way they are
weighted and you would need to sort of match that, & in order not to trade odd lots which could cause a problem, it would take about
$ 14,000,000 to set up a basic basket.
Jim