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

To: James F. Hopkins who wrote (27428)	9/11/1998 10:24:00 AM
From: Follies	Read Replies (3) \| Respond to of 94695

Jim, Where do you get the individual weightings? I thought they were based on market caps. I've computed MSFT weighting at 3-4%. Dale

To: James F. Hopkins who wrote (27428)	9/11/1998 10:30:00 AM
From: Follies	Read Replies (2) \| Respond to of 94695

INDEX GAPPERS AND ABANDONED BABIES The indices tend to not have gaps because the open at the next day is the close of the previous day until each individual issue opens as it opens the index recalculates and so a big gap will appear as a smooth transition, right? However, the SPY and DIA trade with "full knowledge" of opening expectations built in so they should open much closer to the synthetic open of the index that is the open price of all the stocks in the indices. So in theory if you are looking for gaps look at DIA and SPY. Can anyone confirm this?

To: James F. Hopkins who wrote (27428)	9/11/1998 11:11:00 AM
From: Tom M	Read Replies (3) \| Respond to of 94695

Jim <<At some point the liquidity of those 4 stocks is subject to break down>>. Well, we all know now why the funds that are holding up are holding up. The funds have not been selling the bloated-blues, yet. Recently read how they're using cash, then lines of credit, then borrowing from OTHER FUNDS, to provide for redemptions without having to sell shares (ie admit & show their overvalue). They have to suck some new money in like you said, so they can be the new owners of LU with a 100 P/E. At any rate, my question to you is, don't the funds HAVE to sell between now and the end of October? And won't that start the waterfall of fund manager liquidations as they race each other out like Oct 27? regards, Tom