The Gee$e.

[di4]

April 8, 2007

Table Of Contents

1) MARKET SUMMARY

2) STOCK SPLIT PLAY

3) TECHNICAL PLAY

4) COVERED CALL PLAY







Stock Split Notices Investing Q & As Glossary
1) MARKET SUMMARY
> >From "The Daily" at InvestmentHouse.com

Sellers nowhere to be found as market melts higher, caps upside week.
- Stocks rise early, rise late, close higher yet again.
- Bonds continue to do the Fed's work for it as they price in some inflation worries.
- Jobs report and revisions shows continued growth.
- Riding the low volume ripple up toward the February highs and earnings.




Market Summary (continued)

For a schedule light of economic data, there certainly was a plethora of information to wade through in the pre-market. Jobless claims rose to 321K, almost smack on target (320K) and though up, at a level indicating a sustainable jobs market. Indeed, the Monster.com jobs report jumped to a record level. The Bank of England left interest rates steady. China raised bank reserve requirements (for the sixth time since June 2006). Norfolk Southern railroads announced rail rates were lower and carload volumes were lower as well. Talk about a mixed bag. How would the market sort it out?

From the look of it, it ignored it all. They sized up the news and opened flat to lower. Once again, however, they started a slow, steady rise. Indeed, the price action resembled that seen in a strong bullish run higher: steady moves up, tests back to the 15 minute moving average, then another steady move higher. We anticipated some selling attempts to stall the move out heading into the long weekend and ahead of the Friday jobs report, but sellers didn't want any of that. Sure there were a couple of tries to take it lower, one right before lunch and then again in the last hour, but the market shook it off.

Ever since the two sharper down sessions two weeks back the sellers have left the building. Upside volume has not really surged (though it was fairly solid on NASDAQ Tuesday), but with the sellers AWOL, stocks could drift higher toward the prior highs. Enough so that NASDAQ and DJ30 put together a string of 6 straight upside sessions.
Read "The Daily" Entire Weekend Summary

Here's a trade from "The Daily" and insights into our trading strategy:

Chart by StockCharts.com

CROX (Crocs, Inc.--$51.76; +1.78; optionable): Footwear
Company Profile
EARNINGS: Announced 2-20-07
STATUS: Cup. CROX has started to gallop again. Strong run in 2006 and up to early February in 2007 finally needed a rest. It has come back to form an 8 week cup, just now coming off of the lows with a strong volume and price gain Wednesday and Thursday. Looking to move in with some positions as it continues higher and then see if it forms a handle, that low volume lateral to slightly lower move that sets up the next serious breakout and run. When it makes that next break we move in again with more positions.
Volume: 3.093M Avg Volume: 2M
BUY POINT: $52.05 Volume=2M Target=$59.95 Stop=$49.57
POSITION: CQJ FJ - June $50c (65 delta) or CQJ IK - Sept. $55c (50 delta) &/or Stock

Learn more about "The Daily" with Stock Picks! - Issued 5 Times Per Week



** SCOTTRADE **

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).


Remember, everything we do has to pass muster with the market that day ... don't fight the market on these plays.


Listen to Stock Split Report Editor Jon Johnson's
stock split interview on CNBC-TV [ Broadband | Dial-up ]

Here's a stock split play and our current analysis.

Chart by StockCharts.com

BWLD (Buffalo Wild Wings Inc.)
Company Profile
Most of the focus is on energy and metals as commodities are hot once more, and of course we are participating in that move with stocks such as RIO, RS, and FCX. Indeed we took some gain on all of those positions Thursday after a strong run higher for us. That does not mean, however, that there are not other areas enjoying nice moves.

Retail sectors continue to perform, splashing some cold water on the economic sky is falling pundits. We always look for fundamentally strong stocks with great technical patterns, and there are many in the retail area. BWLD enjoys strong earnings growth, and back in mid March it was putting the finishing touches on a 13 week reverse head and shoulders base, an accumulation pattern that often produces strong upside breakouts. We put it on the report and waited for it to make the move.

It started that move on 3-13 with a high volume surge toward the prior highs. It gave back a big part of the move that session but we liked it enough to move in. We bought some positions at $57.48 and some June $55 strike call options at $6.40. Then we waited for the move. BWLD took the next day off then rallied $1.79. Another day off and then a $2.51 gain on strong volume. It continued to stair-step up the 10 day EMA (a level that typically acts as support on a strong breakout) over the next 12 sessions, sprinkling in some scintillating moves along the way ($3.25, $1.85). It hit our initial target at $64.75 on 4-02, but the upside volume was so strong we decided to let it run toward the end of the shortened week. It continued higher until Thursday when it started to fade some. Our plan was to sell some prior to the long weekend so we sold some stock at $67.01, banking at 16.5% gain. We also sold some options for $13, banking 103% or $660/contract.

We also made some great money on other sector plays such as GIGM and MO last week in addition to the energy, metals, and retail plays. I guess smoking while on the internet is becoming a new American pastime. In any event, there are plenty of sectors with strong stocks moving higher outside of the sectors that are covered hourly on the financial stations. It pays to tune out the noise and look at what the market is telling you as to what is moving and where the money is flowing. That helps you get ready for the move before it starts and cut a big fat chunk of the gain out of the middle of the run. Or in the case of BWLD, a big greasy chicken wing. You don't have to like what they serve or sell to make money off of it.

Learn more about our Stock Split Report and how we have made gains of 321% with our powerful stock split plays!
Details Here.




Chart by StockCharts.com

3) TECHNICAL PLAY

ACTG (Acacia Research--$16.41; +0.66; no options): Development, acquisition, licensing of patented technologies. Assists smaller companies, inventors with patents
Company Profile
EARNINGS: Reported 2-21-07
STATUS: Breakout test. ACTG broke out from a 16 week cup with handle base in mid-March, rallying on some solid trade. It made it near 16.50 on the initial run and then tested back the past two weeks, holding at the 18 day EMA (15.55) on the test. Thursday it tapped the 18 day on the low and then surged higher on very strong volume. Excellent action and ready to move in as ACTG continues this break higher.
Volume: 557.851K Avg Volume: 209.168K
BUY POINT: $16.57 Volume=225K Target=$19.95 Stop=$15.48
POSITION: - Stock (no option chain)

Learn more about our Technical Traders Report - Issued 5 Times Per Week


Chart by StockCharts.com

4) COVERED CALL PLAY

MTEX - Mannatech, Inc. is currently trading at $15.25. The May $15 Calls (RYQEC) are trading at $1.40. That provides a return of about 8% if MTEX is above $15 on expiration Friday in May.
Company Profile

Learn more about our Covered Call Tables - 8 Tables Updated 5 Times Per Week

PREMIUM SERVICES
IH Alerts: InvestmentHouse.com's Best of The Best Plays!
Stock Split Report: Forbes.com Best of the Web
Covered Calls: 8 Tables with nightly updates - energize your portfolio!
Tech Traders: Breakouts, wedges, etc...focusing on stocks ready to move now!
The Daily: "The Daily" is a must read for all investors!
MARKETPLACE
Investor's Business Daily: Complimentary subscription delivered to your doorstep!
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The foregoing is commentary for informational purposes only. All statements and expressions are the opinions of Online Investment Services, LP., or 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 portfolios of writers for this issue 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. No one associated herewith receives compensation in any manner from any of the companies that are discussed in this newsletter or on the related websites.
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