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Author: Mike Celeste Editor: Tony Ponzo June Circulation:


Highlight of this past week: New splitter moves up so fast the profit was too much temptation.

In this Issue---
SplitMaster Basic System---
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We had one new splitter enter our system and it was on Friday. One team member reported that he couldn't resist the temptation to take a very quick profit early in the trading day, so he went in and out for a very nice $1,000 gain. He traded the stock and hopes to buy it back again. That's what we like to see and hear about. Our total for the year is looking good going into the close of the mid-year month, and we hope to improve on our 41+% gain thus far when we move into the 2nd half of 2008.

 Momentum Plays---
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This system had no plays this week for three reasons. One, as we have talked about many times before, since the market has retracted so much this year, many stocks have lost a lot of value and just do not have the action they used to. Two, this is the time in the quarter when earnings announcements come to an end and we go into a quiet period until the next quarter starting in July. However, we will have a few plays pop up over the next several weeks as we always do. In fact, we have a play for Monday. We'll send a notice to the members about that. Third, this week we had a nice play that we just missed getting into. The stock took off to the up side just as we put our order in and we never got a chance to go in again.

So we'll just check things day by day and see if we can produce some action.

 Three Indicators---
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Our W Indicator hit a double feature on Thursday and Friday this past week. Both days were showing up moves expected, based on this indicator, and both days the market, and most importantly, the SPY option calls showed great gains. Now, admittedly, it was hard to conceive that the market was headed up, after the previous 4 trading days showed 2 days down 390 and 200 points on the Dow. However, the W did its thing and just cemented its place on our strategy list. We will continue to have more on this in future newsletters.

 The Economy, The Markets & Commentary---
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This week we are making a special request of our team members and readers. Below we show a good part of last week's statement regarding the oil and gas situation that is crushing our economy. Our request is that you copy it, or make any adjustments you want, and send it to several groups--1. All your email contacts 2. Your 3 representatives in Congress 3. Media--many newspapers and TV news have email contacts listed right in the paper or on TV. If you don't agree, send your own statement in support of what is going on (that should be a short list of people). Maybe some of you can put a statement on YouTube, talking about how margin requirement changes can cut down on speculation in the oil contracts--and how drilling right in our own oil fields can release us from the stranglehold foreign oil countries have over us now. OK, check below and alter it as you see fit and send it to those mentioned above. Thanks--it could be that this will catch the attention of those that can do something about this catastrophe that has hit us.

To forward, change, etc--from last week---

" In the oil market as well as in the stock market, margin rates are set to control speculation, for one thing. They can change the margin requirements--in this case, raise the margin requirements to a level that will stop most of the speculation. Margin rates have been changed before for this very reason--to control speculation. Another thing that can be done is to make the oil buyers be required to take delivery--there goes speculators. Can't be done?--it can be done. Rules are changed and created all the time. What is the Fed doing? They are changing the rules all the time in an effort to control the economy as a steadying influence. Price controls---Control the price as Nixon did when the inflation rate was just 4%--here is a quote about that --The internet site is econ review


"August 15, 1971. In a move widely applauded by the public and a fair number of (but by no means all) economists, President Nixon imposed wage and price controls. The 90 day freeze was unprecedented in peacetime, but such drastic measures were thought necessary. Inflation had been raging, exceeding 6% briefly in 1970 and persisting above 4% in 1971. By the prevailing historical standards, such inflation rates were thought to be completely intolerable."

During World War II my father ran a restaurant and price controls were put in. He had to sell at pre-war prices---even though his cost of food, beer, etc., went way up. Was that fair? No, but it was done.

Rent control is in existence in parts of the US right now. Is it fair? No, as the landlord's costs go up, but he can't match the raise in costs with rent raises---but that's the way it is.

President John Kennedy forced US Steel to roll back a price increase. Was that fair? No, not in a free enterprise system---but it happened in 1962.

Do we have controls in increases in rates for electricity, natural gas, and water. Yes, we do. They are still high, but look what happened when rates were de-regulated for electricity--they skyrocketed. The telephone companies were more or less de-regulated, but they had much tighter controls back when Ma Bell, AT&T controlled the market---and prices were kept way down compared to now.

Yes, there is all kinds of evidence that controls can be put on just about everything--and have been. Why our "leaders" refuse to help us is beyond belief--except that the lobbyists and their campaign contributions keep the status quo.

Here is something that really should get your blood boiling. Read the quote below from the web site shown.

Google "Green River Oil Shale" and here is one of the sites.
oil shale


"Oil Shale Resources

While oil shale is found in many places worldwide, by far the largest deposits in the world are found in the United States in the Green River Formation, which covers portions of Colorado, Utah, and Wyoming. Estimates of the oil resource in place within the Green River Formation range from 1.2 to 1.8 trillion barrels. Not all resources in place are recoverable; however, even a moderate estimate of 800 billion barrels of recoverable oil from oil shale in the Green River Formation is three times greater than the proven oil reserves of Saudi Arabia. Present U.S. demand for petroleum products is about 20 million barrels per day. If oil shale could be used to meet a quarter of that demand, the estimated 800 billion barrels of recoverable oil from the Green River Formation would last for more than 400 years !

More than 70% of the total oil shale acreage in the Green River Formation, including the richest and thickest oil shale deposits, is under federally owned and managed lands. Thus, the federal government directly controls access to the most commercially attractive portions of the oil shale resource base".

There you have it---we have more than 3 times more oil than in Saudi Arabia--and that would last us more than 400 years. And you know what? It is economically possible with oil at $30/barrel. As the above also says, most of it is on Federal land--so we don't need to worry about imposing on private property. You know what else that is positive about this? Since this is on Federal land, the money for the oil goes to the Federal government, and we, people, are the recipients. This would go a long way towards a number of things--balancing our budget, cutting deficits as a result, and ending our dependence on foreign countries. President Bush made a trip to the Arab area to ask for help in this situation. He was rebuffed. So much for the power of the US. Yes, search the net under "Green River oil shale" and see all the sites and all the data and information that is currently available. And--that is not counting the oil offshore of the US---which is always facing opposition because it doesn't look good, or it might interfere with a form of marine life we have probably never seen. The ANWR area in Alaska is also ripe for drilling, along with a huge field in North Dakota (search the "Bakken field oil" on the net).

Not to be left out-- Water can't be sent to us from the Sacramento river because a fish a few inches long would be interrupted---species disappear every single day--and we find new ones, too. If it comes to water for people or water for a fish no one knows about--guess what? I want water.

The bottom line is we are being manipulated and lied to by a small group of people that control us and the world. It doesn't have to be this way, it can be changed very quickly with raising the margin requirement (G8 countries can put the pressure on), but we are allowing it to happen.

Drilling can make us self sufficient, down the road, and keep the money in this country. Feel free to contact your "representatives" and friends and show them the data, the proof that these energy prices do not have to be. I keep volunteering to do the job for a lot, lot less than they are being paid now, but no one takes me up on it--which gives me the right to keep harping about it---with the facts to back it up. Good luck to all of us--we need it.

Today's Thought---
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A penny saved is a government oversight.......


Mike

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