Spiders

[Bill Saxon <bsaxon@xxxxxxxxxxxxxxx>]

Might I slip a few words edgewise on TA (as opposed to MS)?

I use Rydex for a portion of my portfolio to trade Nova and Ursa.  I think most
are aware of the calculations that show Nova to go up a percentage point less
than an Index Fund like Vanguard (adjusted for the 1.5 factor) and down a
percentage point more (and perhaps a little more than that).  Apparently this
has to do with the Futures Premium involved or perhaps the fact that dividends
are not being paid.

In addition there is no intraday trading (witness Tuesday when the S&P was up 6
pts in the AM when many would have exited, but by the time Nova could have been
traded was down 40 pts.)

My understanding is that I can trade long and short S&P Spiders with the
following advantages.
1.  Intraday trading just like a stock
2.  If traded at a place like Brown it is only $5 a trade.  This has to be less
than the management fee at Rydex, of course depending on the dollar amount
traded.
3.  What ever percentage that they go up would be equal to the percentage they
go down in relation to the S&P.
4.  The money would be in place at a brokerage where other vehicles could be
used at an appropriate time as opposed to being locked in to the funds offered
by Rydex.

There is always some downside.  What is it??