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

To: Haim R. Branisteanu who wrote (40202)	5/23/1999 12:50:00 PM
From: James F. Hopkins	Read Replies (1) \| Respond to of 94695

Haim ; I understand what you are saying and is why I cautioned any one reading it at the end. ---------------] This type of pair trading is not just for anyone to jump into without a lot of thought. ( and pencil and paper ) Remember the Funds I'm referring to are tracking funds. And the most useful part is if one knows the price "he" is satisfied with and makes a decision to exit the fund, he can then by proxy control "his" "effective" exit price or close to it. If he is the type that runs hot and cold and don't set reasonable targets he better not try it. ---------------- The way I use it is very conservative, and I'm not trying to ride every wave to it's end. The opposing bet is made at a target price and closed on the close, you lose any gain in the NAV just as much as you gain on the bet, or the other way around. It's primary is to circumvent late changes in the market after the cut off time for placing tracking fund orders. I'm convinced that on many days the late moves we see in the market is due to the money flow the Fund managers see, if it's very positive they jump to buying ( and the fund cost you more as you pay closing nav ) if it's very negative they jump to selling and the ones making an exit get took. -------------------- A variance of this can be done if your going into a fund, were you can't control the fund , you can control the "effective" amount you pay or receive . The trade becomes a wash between the price at the time and the closing Nav. This is not free..as there is a cost, but if the market is volatile that cost is minor to the "hidden cost" that fund managers hang on market timers. -------------------- I don't want to get started on how crooked some mutual funds are and all the "inside" trading that goes in within them, and taht we have no laws to prevent, and how the SEC deliberately looks the other way ; it would take a book. Believe me there is a hidden reason 90% of the funds don't beat the indexes taht is never talked about, fund managers scratch one another backs like crazy, and at times run up stocks they know are not worth a crap just for their own personal gain. And Seldom does this ever get any attention, in fact from what I've found out it's not even considered illegal or "inside trading" these prigs are mostly exempt from those rules. Jim