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Technology Stocks : INTEL TRADER -- Ignore unavailable to you. Want to Upgrade?

To: Chris who wrote (4707)	11/24/1998 11:58:00 AM
From: MonsieurGonzo	Read Replies (2) \| Respond to of 11051

Chris; RE:" My goal is a profitable education..." ...you are destined to succeed, then (^_^) >I've been loosely following the ongoing index discussions on this thread, but for the past 5-6 months work has kept me too busy to dig in and really look at the dynamics. Any thoughts or advise is welcome... Well you seem to be doing as well or better than the lot of us, mate. advice? hmmmm... stay away from OEX index options until you get lots of experience {grin} they tend to slip 'n slide 'em around ! In addition to TechStox - which are a universe unto themselves - I would recommend that folks follow these BigBoy sector indices: DRG.X - Drugz bellwether MRK RLX.X - Retail bellwether WMT NF.X - Financials bellwether AXP, has 3 parts: BKX.X - Banks bellwethers CMB and CCI IUX.X - Insurance bellwether AIG XBD.X - Brokers bellwethers MWD and MER Whatcha do is look up the exchange where the index option is traded, read all about it and find the components of the index and note whether it is 'weighted' by capitalization or price - then make up a little portfolio (on MyYahoo! or something) with the index symbol (eg., ^DRG on MyYahoo!) followed by its components, with the biggest cap one first on down through the list. Pick a price - like the close at the beginning of the year or, the close from some bottom (like around 08-10 OCT-98) and type in that you bought 0.001 shares at that price. Then your little portfolio will measure GAIN/LOSS from that date - which indicates relative strength of the components. It's fun to do, Chris, and de-constructing the market into its sectors is very educational for new or experienced investors alike. -Steve