Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Death Sphincter who wrote (29639)	9/30/1998 11:27:00 PM
From: James F. Hopkins	Respond to of 94695

Hi Carl; Well I trust you got the picture, Index Funds by the dozens stay in step with the index via futures arbitrage, and program trading, this involves billions of Dollars every day. On top of that the Futures can be leveraged up to 90%. A serious fall in MSFT now that she is queen of the hill will effect the arbitrage to such an extent that every stock in the S&P, and maybe some that are not in it can get caught up in the linkage. For the SEC the Fed and all those bright wall street gurus to let this type of linkage go this far had to be an exercise of extreme stupidity by people who want to tell you derivatives are to hard to understand. Jim