SplitMaster.com:: Newsletter
Home :: Strategies :: Membership :: Past Results
Author: Mike Celeste Editor: Tony Ponzo December Circulation: 6749

Stat Sheet Week Ending December 6th 2008

ChangesWeeklyYear to Date
Indexes Points Percent PointsPercent
Dow-194.0-2.2%-4,740.0-35.7%
S&P-20.0-2.2%-592.0-40.3%
NAS-27.0-1.8%-1,143.0-43.1%

SPECIAL NOTICE: Our tech people will be doing some upgrade work this weekend. We want to let you know that our site may be down for a few hours late this afternoon and tomorrow morning as well. We should be back to normal by late Sunday afternoon and certainly by Monday morning.


Highlight of this past week: The Momentum Strategy produces a nice win for the week.

In this Issue---

SplitMaster Basic System---
***********************************************
We didn't see much change this past week, with the stocks fluctuating back and forth. Still no new split announcements, but that isn't surprising. Therefore, we dwell on that which is happening and that is in the day trading arena--with good results.

 Big Dipper System---
**************************************
We thought we could have a sell on Monday, with just a decent open, but the Dow opened down about 200 points and took the sell out of the picture.

 Momentum Plays---
************************************************
The action was still on the slow side this week but we did manage to get off a very nice play with WSM. It easily made the $1 profit target and did it within a relatively short time. Momentum Plays So that is what we like to see - just more of them. We have been working on a few ideas on how to increase the number of plays. Momentum plays are usually more abundant but in the last 30 days they have been harder to find for whatever reason. But we thing we have found a way to increase the action. We'll let you know more in the weeks to come.

Three Indicators---
****************************
Team members should pay close attention to the pre-market and open on Monday. Our W Indicator was just 1 point away from being a play by the close on Friday. See the Indicator page on the web site. In the meantime, we did have some things on the plus side in the Support/Resistance area, as we reported on daily. There were 3 winning plays during the week, and probably 2 more opportunities, if acted on quickly.

The Economy, The Markets & Commentary---
*************************************************
The markets had their typical volatility this past week, and even with a nice rally on Friday, ended with a down week. It was a whole lot better than it might have been, tho, because all the news was again negative. Many on the Street are thinking that the negative news is baked into the current price range. I don't know that I agree with that, as there is still a lot of negative news to come--but the market looks ahead. We are still finding the volatility to be an opportunity for day trading. We had a good week, using Momentum and Support/Resistance points to go in and out. It is tricky, no doubt about it, and the movements are quick and large. One put on the SPY had a high of 2.00 and closed at 76 cents.

The financial news is beginning to get to me. I had to turn off CNBC as it became sickening to keep listening to the baloney that the media is feeding out about the Big 3 auto makers and the bailout they are requesting. We predicted that they would get money and Nancy Pelosi and others have said this week that bankruptcy is out of the question--so it is going to be just a matter of how much and at what terms. The baloney part is that the media and the auto companies, and the unions and the representatives of our government are making what I think is inaccurate statements about bankruptcy. Many, many large companies have gone into bankruptcy and worked their way out of it thru Chapt. 11 reorganization.

Most prominent and recent has been a number of airlines. People didn't stop going because of it, and could have been because of the worry over maintenance during BK. Everyone now seems bent on stating that BK would put the companies into dissolution and the loss of millions of jobs. That is not true. The warranty situation has been worked out so there is a guarantee that a warranty could still be offered. If people are so worried and not buying because of BK, how come the Japanese car companies are showing about the same decline in sales as the Big 3? People just are not buying cars now--and not because of BK, but because of job losses and stock losses, and the deep recession that finally became official. The way the news is spun makes it no wonder that a survey thinks it is the worst thing to happen if BK is declared. We felt all along that a deal would be made for bailout, but the way they are doing it is disgusting. The reps are up there ripping the car companies right and left, but that is mostly for show, so they can tell the taxpayers that they were really working the companies over for the benefit of the taxpayers. It's a done deal, and we just wait for the details. We wait, just like we did for the credit market bailout, which is now considered a failure as far as getting the bailout money out for lending. There is one thing that stands out about the car hearings---that never happened for the credit bailout where the banks didn't have to go thru this drilling.

There was a good point made by one of the reps when he asked why the bank bailout money couldn't be used to loan to car companies. In other words, now that the banks got their bailout money, way couldn't they use the money the way it was intented and start loaning it out. And one place to loan it out to is the auto makers. This is a terrific idea, as the US is backing up the loan anyway. It was brought up and that seemed to be the end of it, but it seemed like an excellent idea. Another good solution offered was for some of the oil companies to use some of their obscene profits to make the loan to the auto makers. The loan is guaranteed by the US, so there is no risk to them. After all, the oil industry makes billions in profits from the auto sector, so it seems only fitting that they invest in something that helps themselves.

Another prediction of ours that came to be, involved Hillary Clinton. We said a long time ago that a deal had been cut with her when she pulled out of the race. Of all the candidates for the Democrats, Hillary was the only one that waged a fierce battle to get her fans and others to vote for Obama. That was a clear sign that there had to be something in it for Hillary. Most people thought she might get the VP spot, but when that didn't happen, it was just a matter of what job she would get--and that's how politics works. I'm too old and have seen this happen many times in the past. That's also not to say that there is anything wrong with that, but what gets my goat is that it is covered up---just like the bailout for the car industry is being covered up to make it look good for the reps.

Another comment about gas prices---we are seeing the oil price drop near $40/barrel and gas prices are dropping at a pretty good rate. Those in the majority and in control that said demand around the world was going to drive prices to $200 barrel---were shown to be at best, completely wrong. You may remember that we warned many months ago in our newsletters, of an Oil bubble that would burst . We just didn't know exactly when or by how much it would drop but we thought the signs were clearly there. Although we did take some advantage of this bubble burst in our trading, we see now that we should have backed the truck up as Cramer would say. Speculation drove up the price causing that bubble, and part of the bursting was done by our efforts to expose speculation. You can't have a bad economy and rapidly increasing demand for oil. Anyone with 1/2 a brain can see that, but those in power don't seem to have 1/2 a brain. That was proven when they gave 100% loans with no proof of income to home buyers, and the powers said it was a good thing. Way less than 1/2 a brain. The government is keeping the money printing presses hot and there is work afoot to give some kind of relief to mortgages.

Everyone is getting into the act in coming to the Feds with their hands out for money. States are in such dire shape that it doesn't seem that they can work their way out of the mess without Federal aid. With the big loss in jobs, and the foreclosures and steep home price declines, along with the loss of sales tax money coming from the sale of autos, the skies continue to show dark storm clouds getting even darker on the horizon. Keep your fingers crossed and say prayers that Pres- elect Obama can come up with some innovative programs to jumpstart jobs, etc., and get us back on track. Stay tuned........................

 Today's Thought---
*****************
Men can read smaller print than women can; women can hear better.....(Some women say men can hear fine, but tune-out when a wife talks to them..)



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.