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Author: Mike Celeste Editor: Tony Ponzo May Circulation:

Stat Sheet Week Ending May 31st 2008

ChangesWeeklyAprilYear to Date
IndexesPointsPercentPointsPercentPointsPercent
Dow+157.0+1.3%-182.0-1.4%-627.0-4.7%
S&P+24.0+1.7%+14.0+1.0%-68.0-4.6%
NAS+78.0+3.2%+110.0+4.6%-129.0-4.9%

b>Highlight of this past week: UNP (then click on Last Mo Detail) raced up the tracks for a nice 7.65 point profit gain.

In this Issue---
SplitMaster Basic System---
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There haven't been any new splitters on our list this week, but we do have 2 that are tempting for an early sell as they are up so much. SU and WFT are giving us itchy trigger fingers, looking at those nice profits at this point.

 Big Dipper System---
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This was a quiet week. Nothing much to report here, except we are still trying to work on getting some more plays into this strategy without getting overly risky.

 Options---
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While option volatility remains high, we remain devoted to continuing to write calls and puts. That income is appealing and remains profitable. Also, some of our team members got into details on the SPY options. We feel that there is a good possibility of a SPY put play for Monday because of the run-up in Nas especially, this past week. That could be a 1-3 day play, so keep you eyes on it and see what happens. This would be part of the Momentum group, too.

Momentum Plays---
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The good news is we had another week of a 100% win rate and nice profits. The boring news is, there was only one play once again. We did have several potential plays but the same theme persits -- after the initial gap, the action becomes very lackluster or goes the wrong way. Again, we think it is due to the lackluster results of many companies earnings reports. It's unclear from a lot of these reports if the company is going to improve their numbers in the future or if they are going to slide.

But even if we only get one or two plays a week for now, we'll take them if they continue to be profitable as they have been. Sooner or later, things will be on the move again.

 Three Indicators---
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We are testing the Indicators to determine longer term (1-to 3 days) Momentum plays, and with the Nas up 4 days in a row, along with our Spread Indicator showing overbought, we are looking for a down move early next week.

Feedback---
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One of our team members reported that he put in a sell order on our Momentum play, looking for a decent profit, and was rewarded with an execution of 20 cents more, the high of the day--good luck in the timing by catching a fast moving upward tick in the option. That's nice to hear. Congrats.

 The Economy, The Markets & Commentary---
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The previous week the major indexes were pretty severely hit to the downside, mostly due to the economic news tied to the price of oil. This week the markets decided they wanted to be up, reading positive interpretations into the various reports that came out. The S&P and Nas were up every day this week. The Dow was down only a little bit (8 points), and that came on Friday--late on Friday. It was nice to hear CNBC questioning government reports about the economy and no recession. Everyone, and I mean everyone, who drives has been screaming about the price of gas. Here in California the price is well above $4/gallon, ranging about $4.13-4.15, as of Thursday evening. It has become so bad that Dow Chemical made its highest increase in the 111 year history of the company. The CEO was on CNBC on Friday, explaining why they raised their prices an astounding 20% across the board. Their highest in history; that bears repeating. Now that will be passed on down to us consumers---more inflation. Oil affects probably more of our life than any other item--at least at this point in time. It doesn't seem like oil has any cost that makes it have to raise its prices. But oil makes almost everything else go up in cost. So--we get hit with higher energy prices, and then we get hit again and again, down thru the chain, as every user of oil raises their prices and we are the end user, so we, the consumers have to pay multiple increases. All of this because of one product. It is mind boggling to me that our "leaders" have no solution at all to this problem, not even a small aid. It was interesting to note that there is going to be an investigation into the pricing methods of oil---the usual baloney that they try to sell us that they are trying to help. Nothing will help us--even if they find the manipulation that I believe is going on. It didn't help us when they uncovered the manipulation of the electric prices that quadrupled a while back--No, we are just going to have to change our standard of living, and it is a real shame that such a small group can have this affect on billions of people. Everywhere in the non-producing oil countries, they are facing this problem. Hey, China has to pay this price for oil, too--and they have billions of consumers all by themselves. And don't try to feed me the malarkey that China uses coal for energy, not oil--and in the same breath say that China has a huge demand, as a developing country, for oil. That won't wash in the logic book that I read. We all have to adjust and it takes most all of any fun we had with discretionary money. All I can say to help is that we had better find a way to get our investment money to return more--and that is risky, too--but it can be done. Here at SplitMaster, we continue to have a good year, and it makes us feel good that we can do our small part in increasing the investment portfolios of our members. We really do care and we want to be able to continue to do this--and are constantly working to make it even better.

Follow along with us and see if we can keep going in the right direction.

 Today's Thought---
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How about this--Peanuts are one of the ingredients of dynamite......(I wonder if I had been eating them the last time I blew up--Mike)


Mike

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