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

Stat Sheet Week Ending June 19th 2010

ChangesWeeklyYear to Date
Indexes Points Percent PointsPercent
Dow+240.0+2.4%+23.0+0.2%
S&P+26.0+2.4%+3.0+0.3%
NAS+66.0+2.9%+41.0+1.8%

Highlight of this past week: Another splitter from the Basic System EWhas nearly a $6 profit going and has another week to build before sell date.


In this Issue---
SplitMaster Basic System---
***********************************************
The split theory is proving itself in a big way on some of the stocks. Some we are in, some we were in and got out early, and some have raced up since announcement. Here are some examples of how well the splitters have been doing, while the market stays in a trading range.

LUFK opened at 79.65 after the split announcement in May and it is now 89.24 pre-split priced. GIS opened at 71.90 at announcement and is now 77.00 pre-split priced. EW was 102.95 at announcement and is now 110.24 pre-split priced. A huge gain has been seen in CLB, but it announced way back on Feb. 10 (near bottom of market) at 123.38 and would still be looking for a sell date of 8/3, and is currently 154.90, which shows over 30 points higher. DECK was 143.96 on announce date and is currently 165.11, showing over 20 points higher. These results continue to show that splitters consistently do better than the general market. Let's hope the split announcements keep coming and in fact come faster.

Options---
*******************************
Friday was expiration day for most of the June options, and it went off pretty much as a normal day. Some people believe that option expiration day can be very volatile, but it seems to us that it is just another trading day, and volatility is usually based on economic reports that come out before the market opens on Friday. There is some added confusion in the SPY options as the current month now shows expirations for each week of the month. We saw that there is quite a bit less volume outside of the normal 3rd Friday of the month expiration options and at this stage we think that the lower volume makes trading a bit more difficult, as the market makers don't seem to keep up with what the SPY is doing in those other new expiration dates. This appears to make the option prices trail the market and not participate equally, so we will probably stay away from them. If there is a change in the action for them, we will re-examine the possibility of using them.

Momentum Plays---
************************************************
The strategy is still very slow with not much action. Again this week we only saw three potential plays come through and with only one actually traded. That one trade gave us a small win. Like we said last week this strategy will probably be slow going until the middle of July when earnings season kicks back into full force.

Indicator Play---
****************************
We had another winner on Friday, but didn't make as much as we could have because we played the June 30 expiration option on the SPY which is one of the newly created expiration dates. The normal June 19 expiration option was a big winner, and quickly--but a win is a win. In addition, there were two other days that gave an Indicator signal for a play, but we were a little late trying to get in and missed them. The important point, tho, is that the signal was correct, and we stood to have 3 winners in 3 plays for the week. Some team members that were aggressive had the chance to make some good profits

It should also be noted that we have another signal for a play on Monday, so be ready, if this is the strategy that appeals to you. If you are not a member, maybe you could look at a trial membership and see if this strategy (or one of the others) is something you might want to try.

The Economy, The Markets & Commentary---
*************************************************
The markets had a good week, as can be seen by the stats above. With this push upward we again edged into the plus column for the year. It seems we are in a trading range, which can be very good for traders of our strategies, but we still feel we have not seen the stronger momentum swing to the plus side. There was negative news on housing this week, and employment was less than expected. Here in California, resale prices of houses is up about 20% for May when compared to May of last year. That is good news for homeowners, but new housing and permits were less than expected. There are still a whole lot of houses in foreclosure that haven't been put to sale by the banks, so that is overhanging the market.

The BP oil leak garnered lots of attention with the grilling of the CEO by the Congressional committee investigating it. A real tragedy--- The VIX (Volatility Index) has come down from over 40 in May to close at 23.95 on Friday. That could explain the rise in the market as a high VIX points to a down move, and a lower VIX points to an up move. We are still not down to an attractive buy level, but that's where we stand on that indicator.

All in all, there are lots of problems to overcome and until more jobs (a lot more) are created, we will continue to struggle. There was less attention paid to the European financial situation, but that might just be on the back burner for a while, with a flare up coming at some point in the future. Being conservative and not risking too much is not a bad idea at this time. Long term investing still seems to be something to avoid for right now. Nasdaq has not had a loss in the last 7 trading days, and the Dow has been up 6 of the 7 days, with only a small loss of 20 points last Monday. There could be a temporary pullback, at the least, so we want to be limited in our investment strategies.

Stay tuned...........these are interesting times..................and about to become even more interesting..........................

Today's Chuckle---
*****************
The doctor gave a man six months to live. The man couldn't pay his bill, so the doctor gave him another six months.

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 your 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.