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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Dnorman who wrote (6352)	2/14/1999 3:19:00 PM
From: James F. Hopkins	Respond to of 99985

Dornman; Not realy, the way the SPY does will effect your buying power more than the Short MDY, depending on your broker, funds will go into or out of the balance in your cash acount at the end of the week depending on how the MDY does. ------------- It's not a super duper play, and looks like it would net about 10% year over time, however the priciple behind it is giving you a 10% edge, when it comes to legging in and out and can at least offset trading cost. I wouldn't expect anyone to just hold it and not legg in and out of one or the other, but say like I wanted to go offshore and knew I wouldn't be in a position to do any trading for while but I didn't trust the market not to take a dive, it would be as good as buying bonds. I think the 10% is as reliable over the longer term as any bond or money market fund. It's a hedge with an edge, if your timing is right you can improve the return, and if your timeing is off it will at least give some cushion to taht. It can suffer some shorter term set backs, but if you hold they will work themself out. Its no big thing but a 10% return a year being an almost 100% sure thing is not to be ignored. Jim