SplitMaster.com:: Newsletter
Home :: Strategies :: Membership :: Past Results
Author: Mike Celeste Editor: Tony Ponzo February Circulation: 6820

Stat Sheet Week Ending February 2nd 2008

ChangesWeeklyJanuaryYear to Date
IndexesPointsPercentPointsPercentPointsPercent
Dow+536.0+4.4%-615.0-4.6%-615.0-4.6%
S&P+64.0+4.8%-89.0-6.1%-89.0-6.1%
NAS+87.0+3.7%-262.0-9.9%-262.0-9.9%

Highlight of this past week: RBN - New buy on the Basic Strategy is up 4 points in 3 days.

In this Issue---
SplitMaster Basic System---
***********************************************
The Basic splitters are improving, with the new entry, RBN, up 4 points in its first 3 days on the list. We do have one that needs some help, but we think with time, it will come back. We closed January out with a 6% gain for the month. It was only one stock but a nice win.

 Big Dipper System---
**************************************
Recently we said that we had 2 on the list that were down considerably, but were good stocks. We are pleased to say that they have had huge up moves. FWLT is up 32 pre-split points and DRYS is up 26 pre-split points. Lots of profits were available when the market tanked a bit ago.

 Momentum Plays---A great January
********************************************************
We closed out the month of January with a 100% win rate and a 607% profit. Past Momentum Plays That was the first time we have closed out a perfect month in this system. This week though was very rough with the market being more unpredictable and with bigger swings than I believe we have ever seen. On Wednesday, the Dow went from a negative 200 points in the morning to over a 200 positive points by the end of the day. The Feds cut the rates giving traders everything they had hoped for and the market sure did respond. However, it made it next to impossible to get off a reasonable play and even the market makers were having a hard time as the bid/ask spreads widened to ridiculous levels. So consequently we were only able to pull off one play last week. That play has not gone very well and it is still open. It was a PUT play and with the sudden change of mood to the positive, we have not been able to close the play out. We still have two weeks until expiration day and we think that by that time, there will be a few down days that will give us some help on this play. We don't want the market to go down too much however, just one or two days until we get out. Odds are, we'll have those few down days over the next two weeks.

In the meantime, we have did some testing on Thursday and Friday to get a rhythm going and we are please to say that we have made seven successful trades - four SPX plays and three earnings plays. Some were with small profits and all were with only two contract because it was a test, but they were successful. We should be back in full swing next week.

Three Indicators---
****************************
The one indicator that we do like currently is the W Indicator and it went to an overbought position on Friday. Let's see if there is a down move on Monday, for at least enough points to make a profit in the day-trade options.

 The Economy, The Markets & Commentary---
*****************************************************
There seemed to be an interesting development in the markets this past week. While there was volatility, we saw the major indexes go up 4 of the 5 days. What seemed to stand out was that there was a number of negative news reports, but the markets seemed to shrug them off, saying "We had enough of this down stuff, we like it going up." Many times a good part of the rally came in the opening hour and the last hour of trading. We like that sentiment as it has had extremely good results on the stocks that we follow.

The Fed lowered the interest rates 50 basis points, on top of the 75 points that were lowered the week before. We want to warn readers about how much to read into these numbers. What is most important is how easy it is to borrow, not so much what the rates are--altho they are important, too. What good is it to have a good rate if you can't borrow when you need it. To add to the warning, let us point out that many times it doesn't make any difference what the rate is, or how easy it is to borrow---if you don't want or need to borrow. Companies that are tightening up often times don't need to borrow---they need more sales. This is where the stimulus program can help. There is fighting going on over the details and especially regarding seniors on Social Security---they are bringing up the rear for qualifying for this--but remember they spend, that's for sure.

To point out the importance, or lack thereof, when looking at the Fed rate, we look to Japan. Their rate is about 1/2 of 1 percent, and it is NOT helping the economy to recover. Obviously they are in the mode of not needing or wanting to borrow---they need sales. How low can you go when you are approaching zero interest rates? To us, that tells a very large story.

The election campaigns are continuing to draw interest, and it seems that the economy has moved to the front of the pack coming down the homestretch. We have been telling people for quite a while that it is the economy and the war that are going to be the big issues. Maybe those politicians got a copy of our report, checked out the details, and found we are right. Keep tuned, this is going to be fun.

 Today's Thought---
**********************

A friend is someone who thinks you are a good egg,
even if you are slightly cracked....(or sometimes a bit scrambled)........Anon.

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.