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The following Investment Newsletter is provided by the InvestmentHouse.com family of websites which include StockSplits.net, CoveredCall.Com and TechnicalTraders.com.

1) MARKET SUMMARY

- Rally finally starts to emerge, but only after recovering from more bad news.
- Tenuous rally: rallying on predictions of a rate cut is risky business.
- Of indexes, bear markets, and bottoms: as the S&P 500 joins the Nasdaq in bear market status, how bad is this one?
- Big economic week ahead with consumer confidence and Son of Humphrey-Hawkins part 2.
- Subscriber Questions
- Team Trades

Click Here to read the full text of our Weekend Market Summary. Topics this weekend include: The Economy, The Markets, This Week's Economic Calendar; What To Expect This Week In The Markets and our popular Team Trades column.

2) STOCK SPLITS

Be sure to read our Stock Splits Manual. Playing stock splits can be very profitable, but it takes know-how.

Our stock split service focuses on three main types of plays:

1) pre-announcement (where we forecast an upcoming split prior to the company making the announcement); 2) pre-split (these plays are made in the days leading up to the actual split day); and 3) post-split plays (plays made after the actual stock split where the stock is showing continued or renewed strength).

We play pre-split plays as short-term plays. We get in when the technical indicators show us things look right, grab as much as we can, and get out, always being conscious of resistance and support. These stocks are highly volatile at this time, and can turn on you quickly. Don’t let good profits disappear. Watch for turns, especially when a stock trades in a wide range and finishes off its high. That is a sign these stocks often give you that they are running out of steam. We usually get out and ask questions later. We can always get back in. We like to play in the money calls, preferably two strike prices in the money as this usually gives us a greater delta (the percent an option will mover versus the stock’s movement). We prefer deltas of 75 or better. This means if the stock moves 1 point, the option should move three-fourths of that point. That means up or down.

Remember, wait to see the stock start to move up. Don't just blindly make a play and don’t try to guess tops and bottoms. We can look at indicators to give us a clue as to what will happen, but we need the stock to confirm it for us. Here's a pre-split play to watch and our current analysis.

GIL (Gilden Activewear--$44.32; +2.82; no options): Apparel manufacturing. Splits 2:1 effective 2-27.
Company Profile
STATUS: GIL finally put together a solid move, jumping up Friday over its 18 day MVA and recent highs at 43. The stock had broken out of a cup-with-handle pattern earlier this month and fallen back to support on its 50 day MVA (40.71), and now is back over the range of its former handle. One more day before the split, and we will see if we can get more of a move. The prior breakout high was 48.
PLAY: A move up from here, with stock.

Chart by StockCharts.com

3) TECHNICAL PLAY

IVGN (Invitrogen Corporation--$78.38; +2.13; optionable (IUV)): Biotechnology
Company Profile
STATUS: In a year-long base (previous high is 99.50) and after meeting resistance at the 87 level twice in late fall of last year (after coming off a May low of 36), corrected sharply down to 56 early this year. Price has since made its way back up and is consolidating once again in its wedging-type of character, meeting resistance at the 80 level, which was tapped on the Friday high. Volume was stronger on the move off the 18 day MVA (75.09), at 842,500; avg. 701,500. Looking for a move over the immediate resistance for now. Strong money flow, and relative strength has moved out ahead of price, a bullish sign.
BUY POINT: Over 81 on continued rising volume. Safer: Over 88, on volume in the range of 1.1 million.
POSITION: Stock and/or May $80 calls to buy (IUV EP). Safer: Stock and/or May $85 calls to buy (IUV EQ); latter options have only 30 open interests.

Chart by StockCharts.com

4) COVERED CALL PLAY

SEIC (SEI Investments) is currently trading at $86. The Mar $85 Calls (QEICQ) are trading at $6.50. That provides downside protection of 7.5% and a return of about 7% in about a month if SEIC is above $85 on expiration Friday in March.
Company Profile

Chart by StockCharts.com

5) IPOs

Some light may be appearing at the end of the tunnel. Even as the markets as a whole seem to know only one direction - down, there is some activity in the IPO market. Three companies have already put their offerings on the calendar for the week of March 5, and another one or two may decide to join them as that week approaches. Under normal circumstances, such a list would be abysmally small. In times like these, it looks like an IPO smorgasbord.

Yes, the calendar may pick up in the weeks ahead. But before we can get to the magical week of March 5, we still have to get through the end of February. So far this month, only six IPOs have come to market. And it looks as if the week ahead won't show much activity.

(This IPO story is continued on our website in the IPO Forum.)

Good Investing! See you right here next week!

Your Friends at
InvestmentHouse.com

The foregoing is commentary for informational purposes only. All statements and expressions are the opinions of Eric J. Aafedt of Online Investment Services, LP., or Jon Johnson of Split Ventures, Ltd. This information is not meant to be a solicitation or recommendation to buy, sell, or hold securities. We are not licensed or registered in the securities industry. The information presented herein and on the related web site has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. The security portfolio of Eric J. Aafedt or Jon Johnson may, in some instances, include securities mentioned herein and on the related web site. Estimates, assumptions and other forward-looking information are subject to the limits of forecasting. Actual future developments may differ materially due to many factors. Eric J. Aafedt and Jon Johnson do not receive compensation in any manner from any of the companies that are discussed in this newsletter.