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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: upanddown who wrote (51233)	3/10/1999 5:47:00 PM
From: Merritt	Respond to of 132070

John: What I was thinking about was: supposing a large number of mutual, or pension, funds were afraid the NASDAQ 100 was going to tank, but didn't want to sell their holdings. So in order to protect themselves, and avoid the time constraints and premiums of options, they sold the QQQ short. Theoretically, heavy short selling would drive down the price of QQQ, but since they weren't selling their fund holdings, the Index would remain unchanged, at least until the underlying trust would be forced to sell their units and restore parity. But I'm not really sure of how this thing works. I guess I was wondering if a big money entity could create a window of opportunity from which they might profit. Strictly theoretical on my part...darn it.<g>