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Last Post: 9/11/2018 6:37:54 PM - Followers: 0 - Board type: Free - Posts Today: 0

Why trade a splitting stock, you ask? There is a very simple answer: stocks that continually make new

highs typically continue to make new highs! A power trend if you will.


Lets look at the break down of a stock split.


Stages Of A Stock Split

Pre-Announcement - Stocks tend to climb faster than usual during the 60-day period prior to a split announcement, and even that rate of increase will normally accelerate during the final 30 days before the announcement. Many traders play this phase by taking positions in split candidates at specific entry levels recommended in the RightLine Report. Others will scan the list of RightLine split candidates, and choose entry points based on their own individual criteria. The key to profiting from this stage is being able to determine which stocks are the most likely to split and when.

Announcement - Stocks often jump sharply on the split announcement, and may continue to increase in value during the following few days. RightLine email split alerts can give short-term traders who have yet to enter the stock a quick head start on a potential two or three day hold. The emails also serve as notice to those already playing the Pre-Announcement phase to check their positions and move stops higher to lock in profits.

Dormancy - A few days after the announcement, stocks will usually begin to drift into a "dormancy phase." This is when the stock will level off and consolidate its recent gains. However, exceptionally strong stocks in a leading sector may not go through a dormant phase as they continue to power higher. The shorter the time frame between the announcement and the execution date, the shorter the dormant phase. It can be a very bullish force when a stock announces a split just a short time before the execution date.

Pre-Split Run - When a stock nears its split execution date, it tends to pull out of the dormancy stage, and accelerate as it heads into the split. This transition will start anywhere from 5-15 trading days before the execution of the split and includes the stock split record date. This five to fifteen-day window is an approximate period. The actual time depends upon the individual stock, the overall market condition and sector performance. This typical price acceleration is why we include a list of upcoming split execution dates in the weekend issue of the RightLine Report. However, we don't necessarily wait for the weekend to introduce specific entry levels for stocks that are beginning their Pre-split Runs. When the stock is ready to go, so are we!

Split Execution - Stocks generally move higher quickly as they begin trading at the post-split price. The day of the stock split provides the final announcement to the public that the stock has split. Many investors who watched the stock rise at the announcement and again during the pre-split run will now buy shares at the lower split prices. These final buyers often push prices even higher.

Post-Split Depression - Once the initial excitement of the split fades away, the stock typically declines on lower volume for a period of time. This period will often provide short-sellers with a low-risk opportunity to profit from a brief pullback.

Opinions expressed on this board are just that. Opinions. We are not a licensed brokers. Trading strategies discussed on this board are often high risk and not suitable everyone. If you are losing money in the market, you may wish to seek the advice of a licensed securities professional.

No one is responsible for your gains or losses in the market except you. If you follow stocks, strategies discussed on this board, you may lose all your money. Please weigh the strategies discussed here carefully against what you are willing to risk.

Please do your own due diligence before buying or selling any security in the open market, there are no guarantees.

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#58  Sticky Note Aug Split Calendar hotrod34racer 07/23/12 10:25:58 PM
#57  Sticky Note Current split calendar hotrod34racer 07/23/12 10:23:28 PM
#64   No problem hotrod34racer 09/11/18 06:37:53 PM
#63   Very Thanks for sharing this best ever thing ashishh 05/31/18 06:22:46 AM
#58   Aug Split Calendar hotrod34racer 07/23/12 10:25:58 PM
#57   Current split calendar hotrod34racer 07/23/12 10:23:28 PM
#56   Current Split Calendar List hotrod34racer 06/14/12 10:20:17 PM
#55   AMETEK INC. AME JUL 02 3-for-2 hotrod34racer 05/09/12 06:18:12 PM
#54   COCA-COLA CO KO AUG 13 2-for-1 hotrod34racer 04/30/12 10:49:18 PM
#53   Google chart April 26 2012 hotrod34racer 04/26/12 10:54:45 PM
#52   Three more splits for May including GOOGLE! hotrod34racer 04/26/12 10:52:16 PM
#51   The list is building fast! hotrod34racer 04/03/12 11:28:39 AM
#50   COPART, INC. CPRT MAR 29 2-for-1 hotrod34racer 03/16/12 06:47:13 PM
#49   ASCENA RETAIL GROUP ASNA APR 04 2-for-1 hotrod34racer 03/11/12 11:57:09 PM
#48   Understanding Stock Splits hotrod34racer 03/06/12 05:38:40 PM
#47   ONEOK, INC. OKE JUN 04 2-for-1 hotrod34racer 03/05/12 03:44:02 PM
#46   DELTA NATURAL GAS DGAS MAY 02 2-for-1 hotrod34racer 03/05/12 10:58:52 AM
#45   HOMESTREET HMST MAR 09 2-for-1 hotrod34racer 03/05/12 10:57:35 AM
#44   ALK Chart hotrod34racer 02/16/12 06:29:50 PM
#43   ALASKA AIR GROUP ALK MAR 19 2-for-1 hotrod34racer 02/16/12 06:28:29 PM
#42   DCI Chart hotrod34racer 01/27/12 11:23:06 PM
#41   RES Chart hotrod34racer 01/27/12 11:21:55 PM
#40   DONALDSON COMPANY DCI MAR 26 3-for-1 hotrod34racer 01/27/12 11:19:26 PM
#39   RPC, INC. RES MAR 12 3-for-2 hotrod34racer 01/27/12 11:17:16 PM
#38   MNST Chart hotrod34racer 01/17/12 11:59:55 AM
#37   CMN Chart hotrod34racer 01/17/12 11:58:08 AM
#36   TJX Chart hotrod34racer 01/17/12 11:56:45 AM
#35   COG Chart hotrod34racer 01/17/12 11:55:14 AM
#34   MONSTER BEVERAGE CORPORATION MNST FEB 16 2-for-1 hotrod34racer 01/13/12 10:34:03 PM
#33   CANTEL MEDICAL CORP CMN FEB 02 3-for-2 hotrod34racer 01/13/12 10:32:05 PM
#32   THE TJX COMPANIES, INC. TJX FEB 02 2-for-1 hotrod34racer 01/05/12 11:59:22 PM
#31   CABOT OIL & GAS CORP COG JAN 25 2-for-1 hotrod34racer 01/05/12 11:57:32 PM
#30   MAGICJACK CALL DEC 19 2-for-1 hotrod34racer 12/09/11 05:34:09 PM
#29   HORIZON BANCORP HBNC DEC 12 3-for-2 hotrod34racer 12/09/11 05:32:46 PM
#28   Europe spooks U.S. markets hotrod34racer 12/08/11 12:28:28 PM
#27   On this the split date for SXL hotrod34racer 12/05/11 12:26:15 PM
#26   SXL Today! hotrod34racer 12/01/11 11:52:12 AM
#25   How to Trade Stock Splits hotrod34racer 11/22/11 05:17:32 PM
#24   ROSS STORES ROST DEC 16 2-for-1 hotrod34racer 11/18/11 01:23:47 PM
#23   QSII Chart 11/16/2011 hotrod34racer 11/17/11 12:03:32 AM
#22   How to Trade Stocks hotrod34racer 11/16/11 11:16:24 PM
#21   ESTEE LAUDER posts 1.93 billion $$$ sell after hotrod34racer 11/15/11 05:21:51 PM
#20   QSII News 11/15/2011 hotrod34racer 11/15/11 09:36:53 AM
#19   QSII News hotrod34racer 11/14/11 11:05:13 AM
#18   What are stock splits? hotrod34racer 11/13/11 11:39:14 PM
#17   EL markets.money.cnn.com/cgi-bin/upload.dll/file.png?z028a100az329607e88065453e853670af6e99a hotrod34racer 11/12/11 12:55:25 AM
#16   ESTEE LAUDER EL JAN 23 2-for-1 hotrod34racer 11/11/11 10:49:12 PM
#15   SXL Today 11/11/11 hotrod34racer 11/11/11 11:43:57 AM
#14   10 general principles to help investors hotrod34racer 11/11/11 10:09:37 AM
#13   A stop loss should take into consideration the hotrod34racer 11/10/11 02:14:13 PM
#12   Making use of Stop Loss Orders hotrod34racer 11/10/11 02:00:16 PM
#11   Stock Splits hotrod34racer 11/10/11 01:56:27 PM