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1) MARKET SUMMARY
Happy to say jobs were a surprise.
- Jobs burst higher, market does same, but still more work to be done.
- Best job growth in 4 years and upward revisions prove us wrong.
- Stocks post strong follow through as NASDAQ, SOX and small caps soar just like old times.
Read Full Weekend Summary Learn more about our Stock Split Report - Issued 5 Times Per Week
2) Stock Splits 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.
TLM (Talisman Energy--$59.84; +0.72; optionable): Independent oil & gas. Splits 3:1 on 5-25-04.
Company Profile
STATUS: Flat base. Working laterally the past 4 weeks over the 50 day MVA (57.71), showing solid 2 to 0 accumulation in the pattern (2 up price weeks on rising volume to 0 down price weeks on rising volume). Not bad action given that many oil and gas stocks have been selling off. Friday volume was back up and above average as the stock jumped off the 18 day MVA (58.67). Looking for a breakout move to enter and capture a nice little pre-split move.
Volume: 159.1K Avg Volume: 143.897K
BUY POINT: $60.52 Volume=200K Target=$65.65 Stop=$58.55
POSITION: TLM GL - July $60c (52 delta).
Learn more about our Stock Split Report - Issued 5 Times Per Week | 
