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Author: Mike Celeste Editor: Tony Ponzo October Circulation:

Stat Sheet Week Ending October 3rd 2009

ChangesWeeklySeptember3rd QuarterYear to Date
IndexesPointsPercentPointsPercentPointsPercentPointsPercent
Dow-177.0-1.9%+216.0+2.3%+1,265.0+15.0%+712.0+8.1%
S&P-19.0-1.9%+37.0+3.6%+139.0+15.1%+122.0+13.5%
NAS-43.0-2.1%+113.0+5.6%+287.0+15.6%+471.0+30.0%

Highlight of this past week: The Momentum Strategy makes it past a 400% profit margin for the year. This strategy continues to please everyone following it. Check out the Momentum Past Results

In this Issue---
Options---
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Check the stats above--they show the week, month and quarter and are very interesting. It was a terrific quarter to the upside and you can see why everyone was excited about it.

The market had a decent move down this week, and we took a hard look at writing some Puts on stocks that we wouldn't mind owning at lower prices. For instance, CTSH has been very strong in the rally, and we thought we might either pick up the stock at a decent price or make a little dividend. The Oct. 35 Put looked interesting. We would get the stock for less than $35 if exercised. You would get it for less than $35 because by selling the Put you would receive .45 a share. So if it you get it Put to you for $35, you keep the .45 you got for writing it which is then deducted from the $35 cost of the stock. The other plus is, if the stock does not go down to the strike and you do not get it Put to you, you still keep the .45. You may have stocks you have been watching and would like to buy. If you like them at their currect price, you'll like them even better at a lower price so you may want to consider writng a put against them. It's a good way to round up extra premium..

Momentum Plays---
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September turned out to be a very good month for the Momentum Strategy. Remember a few months back when we were complaining about the summer months being the hardest months? In comparing previous years we see that it seems to be a pattern. Maybe it is lack of volume in the market or maybe it is due to the uncertainty traders have during those months or something else. It is hard to say but for this year once again we see that after having a lackluster June and July, the strategy comes back with a good August then a very good September. We ended the month with 17 plays and a 134% profit so in terms of profit percentage, it is actually one of the best months we've had. And that brings our year to date profit to an amazing 406% profit. No wonder we have members writing us about how excited they are.

Even more exciting to us is the fact that members who have been with us awhile and really understand the strategy, take our daily postings and make their own decisions at times to make profitable plays. For example, this week we had member Ron, Brian, Joseph, Terri and a few others write in that they made trades that we at SplitMaster missed or not even considering. They take our posting about support and resitance, retraction etc. and decide to go into a play. And we are very happy to say that most of those plays are successful.

So we are having a great time with this strategy. And like we said before, we take a conservative approach to this strategy so that there are no big losses. The conservative approach means we do not often hit home runs on one particular play but we do hit a lot of base hits. And when all of those base hits add up to a year to date profit percentage of 406% ---- that's a grand slam! Learn more

Indicators---
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This past week we had 2 potential Indicator plays, both to the upside, and we stood aside. The markets have been pretty volatile this past week and we passed on both of them. They didn't show their normal movement pattern near the open. We were looking for a decent retraction and didn't get it either day. It turns out the signal was correct, as the market did move up both days, from the open, but we did need that retraction. It is good to see that the signal was accurate, and we look forward to the next one.

The Economy, The Markets & Commentary---
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September is supposed to be about the worst month for the market, but this time it was one of the best. Now we have the Halloween month of October in front of us, and we wonder if we are going to get a trick or treat situation. October is supposed to be a pretty good month, but the first 2 days show a negative result. We noticed how many "experts" were predicting the Dow to hit 10,000, and when most predict one way, the market usually heads the other. That is what has happened so far, with the Dow hitting about 9918 on 9/23 and dropping to 9430 this past Friday. CNBC was quoting that change as a 6% drop, and also saying it was near the 10% drop people were looking for as a place to re-enter the market. First of all, a drop from 9918 to 9430 is a drop of 4.9%, quite a ways from 6%. And, the 4.9% is nowhere near a 10% correction. Even if the market was off 6%, that is only 60% of the way to a 10% drop, just a bit over 1/2 of the way. Where do these "experts" get their mathematics.

The news out of Washington did affect the markets, with economic reports being negative, and the unemployment figure was worse than expected, as it was released on Friday. Actually, the market held up pretty well, with unemployment rising to 9.8%. It was probably better received because we had dropped 204 points on Thursday, and it is pretty hard to get 2 days in a row of a big move in the same direction.

The President was off trying to get the Olympics back to the US, and his attempt failed. When it was announced that he went, there was criticism that he should be home working on the economy--no argument from me, but it would have been nice to see the Olympics back in the US once more. There was more criticism when the US was rejected, saying it was bad that the US didn't get it. Lots of criticism either way.
You could also point out that if the Olympics did come to the US, there would be a lot of jobs created ahead of that time, as much work would be needed in construction, planning, etc.

Let's put more effort into our recovery plans, tho. It almost seems that we are spinning our wheels, with lots of talk from everyone, but not that much positive action taking place.

Stay tuned.....let's see what October brings.

Today's Thought---
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Take a deep breath in thru the nose (actually take several)--let air out slowly thru the mouth)---It calms the mind (and the blood pressure).

Mike

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