|
1) MARKET SUMMARY
Decent performance, all things considered.
- Market mostly fights off Intel news, holds at support ahead of the new year next week.
- Jobs report beats, matches, and shows positive revisions while services sector slows its expansion.
- SOX tanks as NASDAQ, SP500 hold support. Who will lead?
- Stocks ready to start the 'new year' on Tuesday.
Read Full Weekend Summary Learn more about our Daily Newsletter with Stock Picks! - 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). For post-splits, we can play them as we would pre-splits (very short term), but we prefer to stretch our horizons, playing the trend. When playing options, we look further out, 2 or more months at least. We let the trend carry us along if there is one, but we will also take profits if the technical pattern degenerates, e.g., breaks a trendline. The main difference between post-splits and pre-splits plays is that we really have to like the pattern. Pre-splits can run right before their splits even with poor technical indicators. For post-splits, we are looking at the stocks from more of a longer term "would I buy this stock at this juncture?" position. Now there are times when a hot stock splits and investors pile in to get in while the stock is 'cheaper.' We play those, but with more of a short-term, pre-splits mentality in that we will be ready to get out fast if the momentum fades. Remember, everything we do has to pass muster with the market that day ... don't fight the market on these plays. Here's a post-split play to watch and our current analysis.
Listen to Stock Split Report Editor Jon Johnson's stock split interview on CNBC-TV!
[ Broadband | Dial-up ]
Company Profile
After Hours: $27.60
STATUS: Cup. Working on a 30 week cup base sporting strong 8 to 4 accumulation. That accumulation shows solid buying during the base, setting the foundation for a breakout. Volume has been very low this summer as it worked higher in the base. It needs to show very good volume on the breakout move, something it should do with the start of the 'new year' after Labor Day.
Volume: 673.362K Avg Volume: 1.16M
BUY POINT: $28.12 Volume=1.6M Target=$38.25 Stop=$27.55
POSITION: UPU AY - Jan. $27.50c (55 delta) &/or Stock.
Learn more about our Stock Split Report - Issued 5 Times Per Week |
