Why the heck didn't ERTS fly at the close?

Discussion in 'Trading' started by goldenarm, Jul 19, 2002.

  1. I was looking to make a bundle on ERTS at the close and instead lost my shirt. Any ideas on why the stock didn't fly because of the S&P rebalancing?
     
  2. ERTS is one weird stock, IMO. (Not just today, I've traded it for ages, with some pretty poor results.)
     
  3. fleance

    fleance

    One difference between ERTS and EBAY is that ERTS was already in the S&P400 index, so for some fund families they simply shifted the shares from the S&P400 fund to the S&P500 fund.

    I don't think that completely explains it, though, because SDS was also a S&P400 memeber and it had a better finish.

    I split money equally between EBAY and ERTS the last 15 minutes figuring at least one of them would spike. I lost some in ERTS, but struck gold with EBAY! Love those S&P500 adds.

    Looking at the 'awesome' 2 pt move in EBAY at the close, makes you remember those crazy 15-20 point moves when other stocks got added to S&P500 in 1999 and 2000...

    Fleance