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Author: Mike Celeste Editor: Tony Ponzo December Circulation: 6819

Stat Sheet Week Ending December 22nd 2007

ChangesWeeklyYear to Date
Indexes Points Percent PointsPercent
Dow+111.0+0.8%+988.0+7.9%
S&P+16.0+1.0%+66.0+4.7%
NAS+56.0+2.1%+277.0+11.5%

A Holiday Note: As 2007 wraps up, we'd like to take a moment to send you our warmest wishes for the holiday season. We'll be taking time off from now until after the new year concerning the Newsletter and the Momentum Strategy. The Momentum strategy is generally slow duing the last week of a quarter and the first week of a new quarter so this works out well for our staff to spend some time with family and friends during the holidays. We will however, continue to post and send out signals on any stock or option plays related to the Basic Strategy and the Big Dipper.

We look forward to a fantastic 2008!!

Highlight of this past week: Basic System plays are all in positive territory

In this Issue--- SplitMaster Basic System---
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With 5 splitters currently on our list, it is nice to see that all of them are in a profit position. It was only because of Friday's large 205 point jump in the Dow that brought December a bit to the plus side. Our belief in splitters and their ability to go up because the companies are doing well has only strengthened, even in this roller coaster year. We have plenty of work to do in our computer studies, but we look forward to the challenge.

 Big Dipper System---
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There were 3 splitters that dropped down on 12/17 and hit our Dipper target buy price. Since then we have seen 2 of them bounce back pretty hard but 1 is still below the target buy price as we ended the week. On each end we have an excellent winner that will be considered for an early sell and 1 that might be considered for additional buying, as it is in such a strong earnings position. Team members, keep you eye out for further news on these.

 Options---
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Our options section has seen such good results lately but we did have one loss this week. Finally after quite a long period of not being that active, we see it has picked up in the last few months. We look forward to even more activity in 2008

 Momentum Plays---
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We see that this strategy is still sitting at an 80% win rate for December and an 83% win rate for the quarter. And the percent of profit for the quarter is still at about 194% based on an average investment of $3,000 (rounded up). Momentum Past Results Unfortunately we got hit pretty hard with a loss on Wednesday. But these totals include that hit. It was one of those plays that just got away from us but fortunately those kind of losses don't happen often. In fact, up until Wednesday's big loss, we haven't seen that kind of a loss since August and before that it was back in March. So while we don't like to see these losses, they are definitely far and few between.

We look forward to improving the win rate in 2008. Baring those frustrating plays from time to time, we have had a lot of fun with this strategy and from the responses we have had, it appears that many of our members are having fun along with us. Our challenge in 2008 is not only to improve the percentages but to find ways to increase the dollar amount of profit on each play. Our goal is to improve our .30 to .40 profit a play on average, to $1 on average. Although we have nothing to report on this yet, you can be assured that we are working on it and are constantly brainstorming and testing new ideas. Here's to an even better 2008!

Three Indicators---
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These indicators continue to do their stuff--great at short term moves. We see that we have a new signal that appears to be pretty strong. Unfortunately, it is not the one that we like to see. There may be a short term downward move in the indexes--but we'd like to be wrong and see the rally of Friday continue to push upward.

 New SPX System---
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Finally, there was a solid loss this week, but our record is still outstanding in this play---36 wins and 2 losses. There were special reasons for the loss, but we aren't going to go into the technicalities, other than to say that we don't expect to lose again for the same reason. We will undoubtedly have a future loss, but it won't be for the same reason.

 The Economy, The Markets & Commentary---
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There was a net gain for the week, and the markets ended up Friday with large gains just for that day, pushing the weeks total into the plus side. It would be nice to see a furtherance of the rally---but---our indicators are giving a warning that there will be a down move first. We hope we are wrong. The economic news did spur buying on Friday, but it seemed that the reason really wasn't good enough for that large a rally. RIMM and Merrill came out with news that spiked interest to the upside, but that hardly seems reason enough to take the whole market with them. The one bit of good news which we would like to see more of is that consumer spending was up and above expectations. But there are still lots of problems out there in the credit area, so that continues to be a thorn in the economy. We continue to stress that there will always be companies that do well in down markets and they often split their stocks. That's why we will be watching and waiting--ready to pounce at more opportunities.

 Today's Thought---
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In order to do what really matters to you, you have to, first of all, know what really matters to you...........Dr. Edward Hallowell, Psychiatrist


Mike

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