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Strategies & Market Trends : Trading SPY and DIA for Fun & Profit -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (95)	12/23/1998 9:58:00 AM
From: James F. Hopkins	Read Replies (1) \| Respond to of 130

Dale; I've just heard about it as I have not been following AOL, who are they dropping from the index to take AOL in. ? As a rough figure take AOLs market cap as to a percentage of the total market cap of the S&P and you will be close to the weighting, My guess is she will have about 0.06% of the S&P..just looked and it seems someone knew it was coming, while there may be a lot of activity as the funds move into her I suspect some one is ready to take some profits as well, all in all if she hadn't already just had a big spike I would expect this to run her up considerable but I now only look for some knee jerk action, in respect to her move. However this does go to show why the MDY is a better short than the SPY, as I suspect the MDY just lost one of it's star performers to the SPY. I stopped thinking the SPY is ever a good short unless the market is already going down, the position I suggest if one thinks the market toppy, is a balanced long SPY,& short MDY until you get conformation, then leg out of one or the other. There could be some disappointment here in respect to the AOL move, as the spoos who are long already got theirs via proxy. Still it's good for her longer term, just looks like a lot of this move got priced in already. Jim