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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: AlienTech who wrote (752)	9/30/1998 7:49:00 AM
From: LastShadow	Read Replies (1) \| Respond to of 43080

Index Fund Accumulation Index Funds can take up to 6 weeks to accumulate the stocks added to the various indices. I remember reading once that most of the accumulation takes place in the first two weeks. I have bought into stocks being added to the Russell 1-, 2-, & 3000, as those jump for a couple of weeks (and the ones being deleted from the lists drop for a couple of weeks) but prices historically equalize back to where ever they were before the moves in about a month. I don't have any data on the other indices however. lastshadow

To: AlienTech who wrote (752)	10/6/1998 4:44:00 AM
From: BoNg-N-BoNg	Respond to of 43080

replying to an old message.. re: Index Fund >>do u meant how long the index fund has to accumulate stocks? << Yes, I would not think they would do it the same day since that might drive the price up quite a bit. Especially since if people knew about it happening and purposely drove the price up in the first place. ========== Alien: this is a reply about last week esp. adding/rotating list on S&P index... I think S&P index fund has to buy on the same day they're officially added on the index..They need to adjust so that it can reflect the S&P index weigh "immediately" and yes its one of the few things that we got an upper hand since we knew when they're being added (of course disadvantage on the fund managers) and will definitely drive the price up... Lastshadows mentioned that on the other index, the fund managers has a few weeks to accumulate. I cannot comment about that since I'm not sure what's the customary w/ the other index besides S&P... One lesson to learn though, PSFT was "downgraded" on the day they were added on the S&P list.. ouch! btw, Individual Investors magazine has a short article about this more than a year ago (I'm trying to look for that month's issue)and stated out that stocks that are being added to the list are usually goes up on the day they're officially on S&P list..They recommend to buy the stocks a day or two before they become part of S&P and sell the next trading day they are "officially" listed on S&P..The avg. gain I believe is around 4% and 90% on the winning sides... good luck! just a thought.. eL...