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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (40199)	5/23/1999 10:40:00 AM
From: James F. Hopkins	Read Replies (2) \| Respond to of 94695

Hi Bill; I think you have the picture, it fills up a lot of time. Not so much java any more, I had to cut back on taht. I would not likely be in it so much but for the fact I can't stay on my feet for very long , and it takes my mind off the arthritis. --------------- --------------- Did I mention the USPIX & UOPIX funds, the first one shorts the NDX 2x , and the second one longs it 2x. It's tricky but if I can get in the short fund on an up day or the long one on a down day , ( after a gap ). and don't over do it..then I can trade ( hedge ) with the QQQ 2x the fund $ to slip out with a profit. The fund orders need to be in by 2pm , & as you know the market can often change from then to close. At any rate I get the closing Nav short or long. However playing the qqq boils down to circumvent the closing Nav of the Fund, by opening & closing an equal but opposite position in the qqq for the balance of the day. An example is , say the NDX is going up after a gap and I feel it's about to roll over so I put in a buy on the USPIX , ( trying to match dollar amount close to what 100 or 200 qqq would be) , then watch the QQQ to offset my fund bet. Saying it overly simple so one may understand the idea, If I'm going short at the close, via the fund, All I need the next day is a good DIP below that close to lock her in , as I can go long 2x the qqq any time ( hence closing the short by proxy ) then place the sell order for the fund and also close my long right at the close. There are several ways to skin this cat and I may not explain them very good, but it boils down to circumventing the closing Nav of the Fund, by opening & closing an equal position in the qqq. The rhyme to the madness is in the leverage.. --------------- My account sees a position in the USPIX as an investment, while it's really a 2x short. So that is considered equity, in my margin account. ( and I don't need to worry with a margin call in respect to it even though with it I'm on margin "by proxy" ) This is also true in the UOPIX , I'm long 2x but don't have to worry with a margin call. THe short fund also winds up letting me short even more than I could with out it. On the other hand it also lets me long the qqq using margin to ( hedge the fund ) if the NDX changes direction. The basic trick is when I'm ready to exit the Fund and I place the order, I know I will get the closing Nav, so I also close whatever QQQ position I have taken right before the close on taht day. ------------------ Well the way I explained it is about as clear as mud, and no one should jump to conclusions and start betting this way without giving it a lot of thought and being sure they have it figured out in their own mind, it's not as simple as I have stated it, also I left out a lot of angles and details that I don't feel I have the talent to paint. This picture is just to give a general idea, but not to be used as an actual map. Jim PS it can be done but without leverage on the S&P 500, using the spy against an index fund to lock in your closing ( effective NAV ) by proxy.