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

To: pass pass who wrote (4656)	12/20/1998 10:22:00 AM
From: tom pope	Read Replies (3) \| Respond to of 43080

>>I'm about to surrender to the index funds Have you ever looked at the Spyders on the ASE? They have them for the S&P 500 and for the MidCap index. Lower overall fees than even the cheapest index funds, and you have the flexibility to write covered calls against the S&P SPDRS, maybe even against the Midcaps as well. Symbols are SPY and MDY. While on the subject of closed end fund equivalents on the ASE, has anybody ever looked at the baffling mispricing of the Malaysia Fund(MF). You can buy the Malaysia Fund at a 50% premium to NAV, or you buy the Malaysian WEBS (EWM) which is structured in a way to trade at NAV or very close. Yet over 32,000 shares of MF were traded on Friday, only a little less than the volume for the EWM's. Who are the buyers of MF? Efficient market, indeed.

To: pass pass who wrote (4656)	12/20/1998 11:24:00 PM
From: James F. Hopkins	Respond to of 43080

Pass Pass; INDEX FUNDS ! Do you want to see a sweet heart deal, I mean a Rip Van Winkle, eyes closed, trading system for dummies. Look at this chart. quicken.excite.com ----------------- You see the MDY how it trails the SPY..do you know why ? INDEX funds, they have to buy more of the runners to track.. and the MDY loses it's best runners as they graduate. There is more to it than that but that's enough. ------------------ chart 2 quicken.excite.com this one has VFINX a no load S&P index in it.. See it match the SPY, which matches the S&P500.. Here is the system, ( won't work in IRA as you need to be able to short the MDY ) Put enough dollars in VFINX to match the MDY price of 100 shares or multiples. So that when you short the MDY your Dollar balanced. Leg in and out of your short with market trends, but be in both when in doubt. Long the S&P/ & short the MID, and with just a little leg work you got a sweetheart deal. If you fall asleep, be in both ways and it will still make money either way the market goes, as if a crash comes the MDY will fall harder. --------------- This will last untill after we have a very big change in the market. If and when we have a prolonged bear market and it goes flat, the bets are off..as at that point the MID caps may out do the S&P500 for a while. If the MIds out run the 500 in a bull market it's the blow off top, and when it starts down you can short both. ------------------ Last while VFINX lets you adjust and fine tune the dollar balance, and it is no load..the SPY beats it some money wise in the long haul as SPY pays dividends. More fine tuning is don't be short the MDY on dividend date unless the market is crashing. Jim