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Strategies & Market Trends : Jim's Nasdaq100 Special as a basket. -- Ignore unavailable to you. Want to Upgrade?

To: F Robert Simms who wrote (651)	5/12/1999 12:51:00 PM
From: Compadre	Respond to of 2103

F Robert Simms: Thanks, that was down right dirty play I guess. Regards, Jaime

To: F Robert Simms who wrote (651)	5/12/1999 3:59:00 PM
From: Jon Tara	Respond to of 2103

I don't think there is anything untoward going on here. QQQ, SPY, and friends are derivative instruments. When the market makes a quick move, these instruments are going to over-react. Yes, they are convertable into the underlying instruments, but somebody has to convert them. When market-timing is measured in seconds, these are not the place to be. You need to apply some of the aspects of option trading to these instruments. (Not all, because obviously there is not time premium.) But in many ways they trade like options. For example, the tend to "ratchet", and to over-react to moves in the underlying, especially if they are fast moves, which is typical of options.