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Author: Mike Celeste Editor: Tony Ponzo November Circulation: 13537

Stat Sheet Week Ending November 19th 2005

ChangesWeekly
Indexes Points Percent
Dow+80.0+0.7%
S&P+13.0+1.1%
NAS+25.0+1.1%
Highlight of this past week
DNR settled out with an outstanding gain of 180% in the
call options. 3 puts made the max 100% gain, along with a 92% winner.

In this Issue---
NOTE: Since next week is Thanksgiving weekend and we are going to be spending time with our families, there will be no newsletter. However, we will continue to send alerts as needed.

Auto Trading - A new service
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Don't forget that we have partnered with a broker to provide Auto Trading. Check it out by going to our site at splitmaster.com and clicking on the Auto Trade link at the top of the page.

SplitMaster Basic System---
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There were 2 splitters that had Sell Date this past week, and both were double digit winners. DNR and FAST added handsomely to our list. Check out this month's closed action on the site. HOLX and BRO are surprises. A number of members told us they didn't like these 2 splitters. HOLX is up about 6.5 points and BRO is up over 3--to date. We don't know how they will end up by sell date, but we like the numbers.

Big Dipper System---
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The Big Dipper currently in play is presently showing a gain, but boy, this one has been on a real roller-coaster. Our old buddy, Bernie, is already in and out of it, as he was able to jump on it and double up when it crashed, and then smiled as it recovered nicely.

Options---
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I have to "knock on wood" every time I talk about the options this month. I'm almost afraid to bring up the results. So far, we have closed out 9 options this month, and all 9 were winners. And not small winners, either. The average call gain so far in November is 152% and for the PUTs (where the max gain is 100%), the figure is 92%. You can see the exact details on the website, Past Results--free to everyone.

S+P 500 Options---
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We went into November having been lucky enough to never have had a loss in this system. Happy Days ! The record is intact. We closed out 2 SPX PUTs at 100% gains. We are now into the Dec. PUTs and saw a 50% gain on them in 2 days. With the market being up for the last 3 straight days, we see nothing wrong with taking the profit and running, waiting to see if we can resell the PUTs. Team member, Randy, has given us some great data to mull over in this area. He is very sharp on this.

The Quest---
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A little disappointment on this one. Nothing serious, but our 2 active plays were doing so well, that when negative news came, it was unexpected. You can see these plays on the site, also--free to everyone--Past Results, Past Options. TRID is covered below in the Split comments. BBY was a shade away from the 6 point profit goal when TGT came out and said they wouldn't make the projection for the next quarter. WMT said it expected good results, but Target took all the retailers down with it. Happily, BBY is climbing back, but is still about 3 points from where it was. The main thing is that it is profitable, even at this point.

Chart Indicator---
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Not much to say, here. The CI is still running strong in the positive column. Several members have sharply spotted a difference in our approach using this tool. We were asked if, in the past, we stopped using the Basic System when the chart went negative. Very true. As we point out, tho, we do the update studies and they showed that the Basic was still winning, so we keep the Basic running now, even if the chart does go negative. However, the chart is a great tool for investors that have stocks not in our system, as many of them drop into losses at those times.

Stock Split Comments---
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A huge BOO-HISS to the CEO of TRID, a currently active splitter. On the past Tuesday he announced that he was going to sell 1.25 million pre-split shares over the next 12 months, starting 12/12/05. The stock was at a great profit and rolling along until this came out. It hit a high the day before, at 35.02. After the news, and by Friday, the stock closed at 31.78. Guess what? The stock is still at a profit, but the frosting was taken right off the cake. This type of situation makes my blood boil. A company announces a stock split, everything is going well, then they drop the bomb on us. Selling all those shares, or sometimes a secondary is announced. Those are rotten tactics to use on us investors. Credibility has been taken off the table, replaced with total suspicion. I say these things are greedy moves by greedy people.

New Option Testing---
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Remember, we have 2 new systems being tested---an option ratio credit spread as one, and the Pattern/Probability System. To keep you up to date, my partner has entered trades in a credit spread for 3 new stocks--TRID, WFT and EBAY. Since it is possible to make a profit if the stock goes up or down, TRID didn't affect him in a negative way. You need to be an experienced option spread person to work with these. Talk to your broker about requirements. The other system, based on stocks repeating their patterns at the same time every year, for the last 4 years in a row, continues to look very promising. I have tacked these on as a test system, at the site. If anyone wants to see them, they are at Past Results, Past Big Dipper (not connected, just has the space), at the bottom. (Free for all to see--Do we make it, or don't we?). After we started testing this, we added in options, too--and you can see them there. I like the promise and premise of this system. At the same time, I'm hoping to hear from more of you about stocks you have noticed that follow these seasonal patterns. I'm looking for a one to two month stretch where they are profitable at those certain times for the last 4 years straight. Even if you just think a stock might be in this category, drop me a line and I will check it out.

Tip of the Week---
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Keep watching Jim Cramer on CNBC. We got some excellent feedback from Leslie on our last mention of watching his picks. I wrote some down and have followed them for the last several weeks, and each one of them is up nicely. Of course, we are in November, but not all stocks are up in November. I just wish I had more time to make a detailed study of Jim's picks--not so much the ones from the Lightning Round, but the ones he picks, himself.

The Economy---
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November is really doing its thing this year. The S+P 500 made a new 4 year high this past week and Nas did the same. In Nov. both returned to the plus side for the year and we want to see them stay there. Oil has backed down to a low point for the last five months--as we felt it had to, what with the high inventory levels. Earnings have been on the positive side, also. The one area of concern is one that we have brought up several times this year---the housing market. This week it was reported that all areas of the country saw a drop in housing starts. Permits for future starts were also down. Here in Southern California, housing sales are heading down. The "experts" are still saying that prices won't drop--I take the strong position that they will. Already the prices have dropped slightly in October, off both August and September prices. The number of sales declined 10% in October, compared to Sept. San Diego County, which was the leader in time of the price increases, has seen the supply of homes for sale grow fivefold over the last year. No, my mind-set remains the same---prices will drop.

Testimonial
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I have a 136% gain in my account so far for the year. I don't buy one of each option I try to buy ~$ (xxxxx) in each so my return is different than how you calculate yours. I did miss a couple, and I did not get out of a couple at your price, but then again I did play a couple that you didn't so I think it really is a wash. It has been a learning process all over again. I am older now and hopefully wiser.

Thanks for all you do!
L ....(One of our favorite team members, and she contributes to our learning on this end, too)

Today's Thought---
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If you do not conquer self, you will be conquered by self...........Napoleon Hill

Mike

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