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Author: Mike Celeste Editor: Tony Ponzo May Circulation: 7282

Stat Sheet Week Ending May 19th 2007

ChangesWeeklyYear to Date
Indexes Points Percent PointsPercent
Dow+231.0+1.7%+1.0+8.8%
S&P+17.0+1.1%+105.0+7.4%
NAS-4.0-0.2%+143.0+5.9%

Highlight of this past week: JBX--makes nice profit in about 5 minutes.

In this Issue--- SplitMaster Basic System---
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Here we go again. Those split announcement numbers are rumbling into buy dates, making for some decisions on how much to spend. Starting 5/22, we see 7 more splitters coming onto the buy list. That definitely calls for caution in setting up your investment program. We keep in mind that last May (repeat, repeat--does history repeat again?) we saw a very large number of splitters and that time frame thru July was not a shining moment. You may want to consider the trailing stop strategy we discussed last wek

On the positive side, we have 5 splitters currently active and 4 of the 5 are ahead of the buy price.

Big Dipper System---
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We have only one dipper running and while it was showing a decent profit, it has slid back this week to be just above the buy point. Close attention is being paid to those on the long potential list, as a down move in the market could bring some into play. Even now we have 13 potential plays on the BD page, with another 7 coming up before the end of May.

 Options---
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Outside of the options in the Momentum program (which is still showing nice results), we haven't seen too many plays. Our best winner going in the Basic Program, GIL, doesn't have any options. How come this is usually the way? But--we are thankful for the nice profit in GIL, anyway.

 Momentum Plays---
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We had four potential plays this week but only one was executed. However, that one play (JBX) was a very nice play making a .50 profit per share in about 5 minutes. Past Momentum Plays We had a number of members reporting profits of up to .90. So, although it was a quiet week it was profitable and another successful week to report. Why it was so quiet is surprising to us. Usually this time of the quarter is still fairly active. We see plays coming up in the coming weeks but this week was just an off week. It seems like the market in general, was less volatile this week as well.

We have been looking for ways to get more potential plays. The main thing we are doing is taking those stocks that we nix but were close to meeting our criteria and then putting them on our internal list to watch. If they show a lot of action in the morning and we do not have much action going in other picks, we will post those them as considerations for a play. Members will get the information on our active session page in the morning. We just started to do this so it should become more evident as we move forward. The other thing we are doing is trying to get more plays out of one stock. This too is something we have just started, so we'll see how this works out in the coming weeks.

Chart Indicator---
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The CI has rebounded from a neutral position to being about 52 points above the break-even line. That continues to be our consistent indicator of what is going on in the markets.

 Stock Split Comments---
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One point keeps sticking in our minds about the splitters. The high number of splitters is one thing mentioned above, but another is the position of the prices of these splitters as they hit buy date, or as they are announced. Most of them are at or very near their 52 week highs. In prior years that never concerned us, but lately we have been seeing too many of them level off. That's another reason we remain cautious and we ourselves are studying our investment amounts for each entry. So, we are studying the possibility of waiting for a pull back in price before going into the plays. But we want to watch closely as we do not want to miss opportunity such our fantastic three day play with POT.

New Systems---
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Our studies of a new potential system, which would entail 1-7 days of holding onto a position, are continuing. We are building our database to see if we can have profitable plays in the 2 days following earnings announcements, instead of holding up to 7 days. We will keep you advised on how this develops.

 The Economy & Commentary---
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Another week has gone by, showing the power of Momentum. Granted, it is in a concentrated area, but boy, it sure is strong. The Dow turned in another winning week. It was up 4 of the 5 trading days, with the down day showing only an 11 point loss. Whenever it seems to run out of steam, it gets a second wind and bounces right back to the upside. Bob Pisani, on MSNBC, was saying that there were a large number of short players that were taking bad hits as the Dow marches onward and upward. The economic news has had enough troubling reports to go along with the positive reports, but the tide is strong, no doubt about it. Will it continue? I don't know, but we keep a close eye on our Chart Indicator to see if we again reach overbought conditions. The Nas has not been as strong as the Dow, with it dropping lower a little bit for this past week. While there continues to be mention of excluding energy and food from the inflation consideration, there are more reports of those 2 items affecting the consumers. Something has to give, there is no doubt in my mind, but I don't know when the correction (reverse swing of that pendulum) will occur. Gas prices and food prices can't continue to rise without drawing away spending from something else. More debt would keep the spending going, but everyone I know, for instance, has cut back on driving outside of the work trip. The "experts" are saying that people are still going ahead with normal travel plans--but some minor reporting has popped up showing that is not truly the case. A number of people are cutting back the distances they are willing to drive for weekend trips, like the 3 day Memorial Day weekend coming up. The last petroleum report--shows an increase in inventory for both oil and gasoline. Yes, even gasoline inventory was up, but still below what it was last year. On the demand side, the report does show that demand for gasoline has continued to rise--and that's what is so surprising to me. It could be due to the increase in the number of cars on the road, with the increase in population. On the other hand, with so many people buying cars for economy (the gov't. is worried about not collecting as much tax due to economy), that should cut down the demand. This sure makes one part of my brain spin---while another part fumes over the oil refinery companies raking us over the coals with these price increases. Keep your eyes open and read closely into the economic news that is coming out shortly, as it could well be indicators of the short term path of the economy. Naturally, we want it to be positive, but not supercharged, as that usually results in a stronger correction than when the economy is grinding out nice gains.

Today's Thought---
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Sometimes I think I understand everything--------then I gain consciousness...........YaYa Sisters

Mike

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