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

Stat Sheet Week Ending May 24th 2008

ChangesWeeklyYear to Date
Indexes Points Percent PointsPercent
Dow-506.0-3.9%-784.0-5.9%
S&P-49.0-3.4%-92.0-6.3%
NAS-84.0-3.3%-207.0-7.8%

Highlight of this past week: SU - still up almost 30 points from our buy price.

In this Issue---
SplitMaster Basic System---
***********************************************
Overall, the Basic splitters didn't do too badly. We still have a lot of profit in SU, almost 30 points. WFT dropped from 91+ to 84+, but it is still at a profit. BUCY bounced back nicely on Friday, in spite of the big drop in the Dow. It is at a profit, too, and altho it isn't much, it did well since we just got into the stock this week.

Big Dipper System---
**************************************
Two of our dippers fell back this past week, and we actually take this drop in the market as a sign to take a closer look for more Big Dippers. Since our Basic plays are ahead, there isn't much reason to look at them. What we can do is try to look at some previous splitters and see if they are at attractive levels, or maybe even some general stocks that have fallen to a point where our computer says they might find support. CELG and GS were two examples of those this past week, and both made nice day trades, per our testing.

 Options---
*******************************
The past week saw several very good opportunities to get into some options, both puts and calls in the SPY options. Let me know if you are chartists and interested in the day trading method we use. There is a possibility we can provide you with some tools that will help you make your own decisions, based on our method--that way the quick trading necessary can be more efficient. Send through the email on our web site, if this is something for you. We are risking about $2,500-3,000 per trade of 10 options, and can make $200-1,000, before commissions. We aren't sure how we are going to present this yet, but if you are interested, let us know.

 Momentum Plays---
************************************************
This strategy is still slow going. It only had one play this week but it was a decent win and we were in and out in a relatively short time. As I mentioned last week, a lot of stocks seem to be announcing in-line and that seems to be making for plays with a lot less action than before. We are looking for companies that beat or miss the street substantially for the better move. This may say something about how the overall economy is doing . Companies are not doing fantasticly at this time but they are also not doing terribly either. We think this is making traders unsure of the direction of these companies and are hesitant to trade the stocks. Eventually this will change but for now we'll just keep taking our shots looking for those good plays. And there will be some big movers from time to time that we will catch.

 Three Indicators---
****************************
This is another area where we want to develop a more practical use. These indicators have been very accurate, but you still have to have a sense of timing--for day trading primarily. They can be used for stocks or options. I've traded in combination with charting and indicators and the net results have been on the plus side. We are thinking about offering the Indicators as a separate subscription at a low price for those that might have interest in just this feature. Regular team members would automatically receive this notice, as they do now--on our web site daily.

The Economy, The Markets & Commentary---
*******************************************************
The markets seemed to want to avoid negative news until this past week. It seems reality finally hit home, and we went from optimism to pessimism in a big hurry. The major reason, we think, was the explosion of oil prices to well over $130/barrel. We continue to feel that we are being lied to, or at least have totally inept people in high places putting out news about oil. It seems to us that much of the media is not doing any due diligence in checking on the facts; they are just reporting what public relations people are telling them. Demand is not continuing to rise and thus be the reason for the increase in oil prices. We might never get the full truth about this, but I'm betting that more stories will come out later, showing how we have been scammed. Note, I say "how" we have been scammed. To me it is a given that we are being scammed. Take a look at the amount invested in this area by hedge funds--a tremendous increase in a short period of time. I like the word manipulation, more than the word investment when talking about oil. The demand in the US is going down, and "they" say oil was going up because of the weaker dollar. So, the dollar improves and oil still goes up. Then they say China and other developing nations are the reason, buying more and more oil. Actually, China uses coal a great deal, and not afraid to build more energy plants using coal. They also have to pay more for oil, too, and that raises their costs in the sectors that use oil. Indonesia just raised gas prices 30% as they can't afford to subsidize it anymore. All around the world, oil is taking too much money out of the loop. We have to stop buying something to make up for oil costs, and that means less for somewhere else--and a lot less. The airlines just raised prices another $60 for the big 3, and the charging of $15 for the first piece of luggage was started, too, and most likely will be followed by the others. Cutting flights due to fuel charges is also being done. There are signs of bankruptcy possibilities looming, according to reports. Of course, BK is facing a lot more businesses than the airlines, too. Home inventory is the largest in 23 years, even tho the number of sales has gone up some. A large number of sales have been as a result of the foreclosures--people are looking for good deals. The best deals in the foreclosures in CA is in areas distant from work. So are you going to buy a home and have a long commute, driving up your fuel costs? One feeds on the other.

Holiday travel has been altered according to those in this field. People are going away this long weekend, but many are not going as far as they had planned. We were in a tourist area this past week, in Ventura, CA, and it looked almost like a ghost town in the tourist area around the beach---and that is a close location to LA.

Having said all that, we continue to say, if you can't beat them, join them Find the companies that are doing well in this type of economy--or short the companies that are doing badly. Furniture sellers is a group that could be facing more rough times, as an example. Lowes, in the building supply is falling back. As one of our team members did back when we were talking about the homebuilders, early on--buy puts in those stocks. Are there any companies in the primary business of seeds that are publicly traded? We heard a report that seed orders for vegetable gardens are way up. Gardening cuts down on the food costs, and besides that, gardening is good exercise and fun, too. Less gas use, also, if you don't have to go to the market as much as before.

Hold onto your hats, folks, its going to be a bumpy ride. Put your thinking caps on and figure out those sectors that will benefit, and those that will suffer more, and act accordingly.

 Today's Thought---
*****************
We need to understand that thoughts are tools.
Are we using them as productively as we can?.............Dr. Tom Morris, business speaker


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 you 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.