SplitMaster.com:: Newsletter
Home :: Strategies :: Membership :: Past Results
Author: Mike Celeste Editor: Tony Ponzo September Circulation:

Stat Sheet Week Ending September 24th 2011

ChangesWeeklyYear to Date
Indexes Points Percent PointsPercent
Dow-738.0-6.4%-807.0-7.0%
S&P-80.0-6.6%-122.0-9.7%
NAS-139.0-5.3%-170.0-6.4%

Highlight of this past week: Once again, the Free Day Trading picks have an amazing week with four picks and four wins for a 100% win rate!. And so far in September, it has won over 80% of the time! Free Picks

Did You Know: Our new book is much more than just a book about Day Trading. It covers a wide range of information on stocks and options that give you a trading edge. Get a Free Preview now of our new book Never Let Wall Street Steal Your Money Again!

In this Issue---
SplitMaster Basic System---
***********************************************
The streak continues to result in no new stock splits being announced. However, this time around, it is easier to understand, due to the craziness of the market moves. We continue to have faith that sometime rather soon we will revert back to some more normal patterns of splits coming when companies are doing well.

Big Dipper System---
**************************************
This week we had 2 Dippers put on hold, but for different reasons. With one that is currently in play, we went from a decent profit to a loss in two days, and it happened that the next day was a normal sell date for the stock. Because we feel it is a very good stock, we delayed the sale date and will announce that a bit later. Team members should pay close attention as it might be that the sell notice could come during trading hours.

The other stock was a potential dipper, but again because of the unusual movements in the market, we held off putting a buy price on it. It turned out to be a good move, as the stock took a pretty steep dive and went well below the normal buy price. As soon as we see a more stable market we will put it on the buy list.

Options---
*******************************
I guess we should be thankful for this week’s option handling by the market makers. We saw “only” 4-5 cent time value losses during some of the trading days. It seems that those people take advantage and just don’t ever lose. They adjust the option prices so that the buy and sell levels are distinctly in their favor. They can see the order sheet in front of them and know the bids and asks of waiting orders. Example—they see that someone wants to buy and is willing to pay a certain price. The market maker can adjust the spread so that if the other side wants to get a quick execution, he will pick it up at a bargain price and sell to the order that is sitting there. Lately this type of action has been getting out of hand, with drastic drops in time value—and that time value is set by the market maker.

Momentum Plays---
************************************************
The Momentum Strategy was bifurcated this week, to use a term often used in stock trading. I'm sure you know that it means going in two different directions at the same time. We had a number of trades this week in which the basic play won and the aggressive play lost and vice versa. That is not too surprising as the market accelerated its wild and fickle movements this week with sudden unexpected changes which we call volatility. Of course on the trades in which the aggressive play won, you can give credit to the deeper stop losses. Conversely, on the times the aggressive trade lost, you can give blame to the higher profit targets. Volatility in the market can bring a lot of opportunity in day trading. Everything, though, is about timing. We'll see if the market continues to be volatile this coming week. If it is, we will make some adjustments to improve the timing issues and try to take advantage of this wild market.

Indicator Play---
****************************
We continue to shake our heads at how accurate the signals are for this strategy. The signals are coming in great, but the execution has been more difficult because we are setting an exact buy price, or better. Some team members that are not using auto trading brokers are acting on their own and getting orders executed in the “general” area of the suggested entry price---and they are doing very well. This strategy continues to be my favorite, and I think that over time, the reason it is most attractive to me is the consistency of the win pattern.

The Economy, The Markets & Commentary---
*************************************************
I have a question, but I don’t think it will ever be answered in my lifetime-----------When are the people in control going to be honest? Now, by the people in control, I am referring to our government representatives, who I am totally disgusted with. I am also talking about the people that control our financial markets. I keep talking about market manipulation from time to time, and it seems that this year the manipulation theory is the strongest and the longest ongoing that I can remember. Of course, it is my belief that whenever 80% of any market is handled by a relatively small group, you are going to see manipulation, or at least attempts at manipulation. Remember history—and I love history. History does repeat itself. So, go back about 30 years when the Hunt brothers tried to corner the silver market. There is was, manipulation drove the price of silver up to around $50/oz.. And when the scheme was brought to light, the price collapsed and never got back to that price level until this year. That’s what can happen and how long it can take to get back to a previous level. We are in the process of paying for another manipulated market—the mortgage market. A small group of people thought up another controlled situation that was highly manipulated. And in part, this small group of people were indirectly spurred on by careless government programs in place at the time.

There is a lot of demand for less regulation, but that can be a two-edged sword—and was, in the case of mortgages. Regulations were repealed, allowing the financial institutions to do what they couldn’t do before. So, what happened? - just the greatest total threat to financial collapse on a worldwide basis that we have ever seen! If extraordinary steps had not been taken, I think it was obvious that the whole financial system would have collapsed. However, the treatment hasn’t come up with a cure yet. The world is still struggling to find answers and at present we are just keeping things afloat.

Where does manipulation come in now that we know the problem? Manipulation is being carried on, in my opinion, because the markets are being traded in a range that is not explainable. Lately we have seen lots of violent market action due to the financial situations in Europe. Here’s where the manipulation comes in. One day the market sees a big rise and the explanation is that the European situation is not as bad as was thought. Why? A vague answer comes. The markets go to the upper end of the range and then suddenly there is a steep drop. The reason given for the steep drop is that the European situation is not as good as they thought it was. In reality, nothing in the European situation has changed at all. There is a real mess over there, but you can’t say one day that Greece isn’t very important and then the next day say that Greece influences major financial institutions around the world and the risk of a domino affect to Portugal, Italy, Ireland, Spain, etc. is possible. One of the key problems is that the financial institutions will not release what their real position is. The same thing is true of situations here in the US. Banks are allowed to carry items on their balance sheets that do NOT have to have the true value posted. To get a much truer position you would have to have what they call “mark to market”, meaning that they would have to post the current value of the assets that they are carrying on their books. Think of it this way—You want a loan and you go to the bank and they want to know the value of your assets, in order to determine your financial situation at the time you want the loan. Try telling them that you paid $400,000 for your house that is now worth $250,000, but you say you should be allowed to say that the house is still worth $400,000 because that is what you paid for it, and someday real estate values will rise again as they always have. If the bank only just laughs in your face instead of kicking you out the door, consider yourself lucky. But for them, our leaders have found it in their best interests to allow the financial institutions to do just that—not report the current value of their assets. That is manipulation in my book.

There are many other examples of how small groups manipulate markets so that the vast majority do not get a fair shake. Here in California the consumers were manipulated in the electricity rate business. Again, regulations were changed, so that rates were not regulated any more. So what happened? The few that bid on rates sold to each other and each sale resulted in a rise in our rates. Then the rates were sold by the 2nd party back to the first and rates went up again. I don’t know how many times this happened, but it was all proven to be true. Then what happened? Did they unravel this and make the greedy people pay for their crime by getting settlements that could be passed back to the consumer? No way---it never happened. The vast majority paid for it in all ways. So much for doing away with regulations that really protect. Granted, there are regulations that stall and even prevent needed projects. But, my thought is that the lobbyists get around that eventually by seeing to it that the people in control are taken care of first, in the form of campaign contributions.

So much for manipulation---we the people get manipulated time and time again, with the small controlling group profiting by their actions.

Hey, we haven’t forgotten about something being rotten in Denmark—oops, no, not Denmark, but right here in the US---again. The scandal that appears to be on the verge of being exposed is gathering steam, and we will continue to follow it and have more to say about it shortly - I'm talking about Solar-Gate!

In the meantime, stay tuned, for you know by now, for sure, that................these are interesting times. (We pay through the nose, but we do get interesting times.)

Today's Thought---
*****************
We the people are the rightful masters of both Congress and the courts, not to overthrow the Constitution, but to overthrow the men and women who pervert the constitution...............Abraham Lincoln

Mike

Published by Splitmaster.com, LLC.
P.O. Box 960 San Dimas CA 91773
Copyright © 2006 All Rights Reserved.
Privacy Policy

To unsubscribe from our newsletter or edit your delivery address go to our Newsletter Page. To edit membership information login to the Splitmaster.com members page. For inquiries regarding this or any other Splitmaster.com Information Delivery System publication contact us at staff@splitmaster.com. Answers to many common delivery issues may be found on our Mail Delivery Issues page.