Replies to post #36211 on Profunds index and sector trading (PRO)

[was Steve]

market putting up a fight but drawing ever closer to recent lows. one sector has already made it to the lows...wireless but it is very heavily weighted in one stock...sprint (s).

[Namiar]

Hi Steve,

I went back into my achives and dusted off the RAIM model. That model had glory days in 2002, 2003 and 2004. I had a successful run with it, but as volatility waned, its performance flattened. The daily committment (with no action) caused me to give it up ultimately.

I just went back and populated the model - looks like it gained about 25% from EOY 2004 to EOY 2007. No so shabby, but I did much better with ad-hoc trading.

I had been wondering how RAIM handled the recent cratering and the results are absolutely shocking!!

Up about 80% YTD and +30% since Sept 30th.

I immediately opted to begin following the model again while volatility is high. Hopefully a nice 2 year run is in the cards.

Initiated a 60% short position (NDX) at the close today.

-War