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Email Version, Section 1, Sunday, 05/28/2000

The SplitTrader.com Newsletter         Sunday 05/28/2000 1 of 1 
Copyright 2000, All rights reserved.  
Redistribution in any form is strictly prohibited.  

 - Your World Leader for Trading Stock Splits on the Internet - 

Posted online for members at: http://www.SplitTrader.com

The entire newsletter is best viewed in COURIER 10 for alignment
================================================================
To stop receiving this SplitTrader Update,
send email to removeST@splittrader.com
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In This Newsletter:
===================

Market Commentary - A Time to Reflect
Definition of the Day
Split Announcements - MCRL, ESBK and HSP
Sector Watch - Breakdown by sector of market performance. 
Event Calendar - Next Week's Economic reports 
Editorial - Baan Goes Searching for a Savior
Tuesday's Expirations 
Tuesday's Split Play-of-the-Day - AES
Split Plays - New - Updates - Drops

============================ATTENTION============================
In the past two weeks, SplitTrader.com has added several 
enhancements to the site. Next week even more debuts are planned, 
with the addition of our SEC Filings Calendar and FAQ page. 
Shortly thereafter, we will be initiating our "Ask the Analyst" 
segment.  

For now, check out the recent improvements and new features at: 
http://www.splittrader.com
=================================================================

Market Commentary
=================


A Time to Reflect

Or perhaps genuflect to the awesome forces of the market.  A 
three-day weekend is upon us and it could not come at a better 
time.  It gives market participants time to review how they 
performed during the past two month period that was perhaps the 
wildest and most difficult to trade in years.  So how did you do?  
Perhaps the best way to evaluate your performance is to gauge how 
disciplined you were in following your rules.  To purely look at 
your account balance may be a bit misleading.  Face it, most 
participants are down from their February statements, as there is 
a natural bias to go long.  Congratulations to you grizzlies out 
there.  

So what rules do you follow? Did you let short-term trades turn 
into long term investments?  Did you place and leave your stops 
out there? Did you get out when you had a 5%, 10% or 20% hit in a 
stock?  Did you use trailing stops to capture profits on the 
bounces before the rollovers?  Did you keep your margin exposure 
at acceptable levels and within your risk parameters?  Rules are 
designed for the singular purpose of extricating emotion from your 
trading decisions.  Unless you are a member of the undead, emotion 
was probably a big factor in your trading life over the past two 
months.  Eliminating bad trades is a constant fight against 
emotions.  Discipline will allow you to survive and profit.

SplitTrader.com uses several basic rules.  We set stops just below 
support levels.  We exit our plays before key events such as 
earnings reports, split announcements and split payable dates.  
These are the most basic rules.  We leave plenty of room for the 
incorporation of each individual's rules.  There are a myriad 
number of trading styles out there and each of you have to make 
your own decisions about your risk tolerance and the 
aggressiveness that you can handle.  On Monday, take the time to 
review your trading for the past two months.  It could prove to be 
very educational.  Many market participants will be doing this, 
and the winners for the rest of the year will figure out what they 
did right and what they did wrong and will strive to improve and 
learn.

The market went out with a yawn on Friday as players unwound 
positions ahead of the holiday.  The NASDAQ attempted to rally 
early but the prevailing trend was too strong to keep things 
going. The ebb and flow created a virtual wash as the Index closed 
down a quarter point to 3,205.  The NASDAQ 100 (NDX) managed a 
small gain of 2 points and closed at 3,101.  Volume was 
understandably light, with 1.07 billion shares traded.  Breadth 
was somewhat weak again as decliners beat advancers 21 to 17.  For 
the week, the NASDAQ was down another 5.4%.

The NYSE players were equally bored. There was a little trading 
going on but the DOW finished the day close to where it had 
started, down 25 points to 10,299.  Volume was exceedingly light 
at 825 million, as many beat the traffic out of town.  It was 
nearly a dead heat as advancers beat decliners 15 to 14 on the 
NYSE.  The money that is out there opted to continue to watch from 
the nosebleed seats as the DOW dropped 3% for the week.

Bonds had a decent day during a holiday shortened session.  The 
10-year note moved 15/32's higher to a yield of 6.33%.  The 30-
year bond added 23/32's to a yield of 6.06%.

There were some winners among the sectors.  They mostly came from 
the usual suspects but there was a surprisingly solid performance 
from the Semiconductors as the SOX gained 7.95 points to close the 
week at 909.66.  Other winners were the Banks (BKX) up 3.66 to 
806.75 and Utilities (UTIL) up 2.32 to close at 327.46.  On the 
downside were Biotechnology stocks (BTK) which shed 4.2 points to 
435 and Pharmaceuticals (DRG) down 1.13 to 390.63.

In a bull market, Friday's durable goods orders report would have 
sparked a very nice rally.  The number dropped 6.4% in April, 
which was the largest decline since December 1991. Nevertheless, 
the economic report was largely ignored after the open due to 
traders being more interested in getting into cash and going home 
than anything else.

There was a reasonably significant takeover announced on Friday.  
Devon Energy, a current Split Trader play, has agreed to buy Sante 
Fe Snyder for just over $2 billion plus the assumption of 
approximately $1 billion in debt.  The deal will create one the 5 
largest independent oil and gas companies in the US.  Devon (DVN) 
dropped 3 1/16 on the news as the market continues to immediately 
sell acquiring companies and Sante Fe Snyder (SFS) gained 3/4.

Office Depot (ODP) was a huge percentage loser as the company 
warned that same store sales are slipping and that they will miss 
second quarter expectations by 4 to 6 cents.  The Company said 
they should be able to earn 18 to 20 cents.  Previous estimates 
were for 24 cents.  ODP dropped 3 3/16 to close at 7 5/16.

Immunex (IMNX) was a strong negative influence on the Biotech 
sector as the Company reported some pretty mixed and therefore 
disappointing results from its Phase II trials of asthma drug 
Nuvance.  Based upon the report, Paine Webber cut its 12-month 
target to $30 from $40.  The research firm maintained its Neutral 
rating on IMNX, which dropped 4 5/8 to 25 1/16 on Friday.

One curious development last week was the dismantling of shares of 
market leader Qualcomm (QCOM).  There is growing concern that the 
recent addition of China to the World Trade Organization may 
impinge upon Qualcomm's leadership role in providing the wireless 
infrastructure and service to potentially the World's largest 
individual market.  QCOM came out on Friday to try an alleviate 
concerns by throwing their full support behind China's new trade 
status, stating that it is a positive development for their 
company.  Nevertheless, shares of QCOM dropped another 2 15/16 to 
$66 1/16 on very strong volume.  QCOM has dropped over 30 points 
in the past two weeks and is well off its highs, as uncertainty 
about the future of their Chinese business opportunities remains 
in question among the analyst community.

One stock to watch on the open Tuesday will be American Power 
Conversion (APCC).  The stock will become the latest addition to 
the S&P 500 on May 31st, after the close.  APCC will be replacing 
Mirage Resorts (MIR), which is being acquired by MGM Grand (MGG).  
APCC, which closed at $30 7/8, is likely to rally as speculators 
jump on the stock in anticipation of the buying that Index Funds 
must do in order to properly reflect APCC's inclusion in the S&P 
500 Index.

Here are the upcoming economic reports that the market will be 
watching.  Tuesday: May consumer confidence. Wednesday: April new 
home sales, April leading economic indicators and Chicago 
Purchasing Managers index for May. Thursday: Weekly initial 
claims, April construction spending. Friday: The biggies! May 
employment report, average hourly earnings and the unemployment 
rate, April factory orders.

Odds are that we have now seen the short-term lows for the market 
last week.  The week following options expiration is typically the 
poorest for equities.  Tuesday will be critical because players 
will come out of the three-day weekend armed with their renewed 
technical and fundamental research.  If there is not any interest 
in your stock in the early going next week, do not expect much 
later.  Any rallies are sure to be somewhat muted as the market 
will probably wait for the critical employment reports on Friday 
to dictate market direction.  Fear of interest rate increases 
remains as the single most dominant influence on this market.

You can look for a few isolated bounces in the technology sectors.  
One group that may post some early gains could be the software 
security firms, as it appears that another viral infection is 
making its rounds this weekend.  Two plays of particular interest 
that I have traded often are CHKP and SYMC.  Semiconductors may 
also enjoy a little positive action early, due to their relatively 
stronger fundamentals compared to other technology sectors.  Other 
than that, look for continued mild defensive interest in 
Utilities, Energy and Consumer stocks.

These are the following important support levels to watch for next 
week. DOW at 10,160, NASDAQ at 3150, NDX at 3260 and the OEX at 
742. Drops below these support levels could lead to another down 
week, so be cautious.  Otherwise, you can go long in the hopes 
that we can climb a bit but use trailing stops to protect profits.  
There is nothing wrong with taking profits quickly, every bit 
helps.  If we do rally, look for the markets to cool off on 
Thursday ahead of the employment numbers.  

Do not forget to take the time to seriously review your objectives 
and honestly assess your performance and discipline over the past 
two months. 

Good luck! And may all of your trades be winning ones!

Jim Booth
Research 



==================================================================
Announcing our...
==============
Technical Analysis, Stock & Options Trading Seminars. 2 and 3 day 
Technical Analysis, Stock and Options Trading Seminars coming to 
you! We are responding to your requests to teach students how to 
pick stocks using the best analysis tools available on the Internet 
and how to maximize returns on those stocks with options. Learn to
trade like the pros!

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==================================================================

Definition of the Day
=====================


Cyclical Rotation

Cyclical rotation occurs as the economy moves through its various 
phases.  As the economy turns up, there are certain groups of 
stocks known as cyclical stocks, which will rise along with it.  
Examples of these include housing, paper and automobiles.

For the complete definition, please go to:

http://members.splittrader.com/glossary/viewglossary.asp?glossaryid=421



============================
Friday's Split Announcements 
============================


Friday, May 26, 2000, During Trading

Integrated Circuit Manufacturer Declares 2-for-1 Stock Split

After market close Thursday, Micrel Incorporated (Nasdaq:MCRL) 
announced a two-for-one stock split of its common stock, as 
approved by the Board of Directors. Shareholders of record on 
June 6, 2000 will receive addition shares on the payable date of 
June 27, 2000. This will increase MCRL's outstanding shares from 
42 million to about 84 million. Currently the company has 100 
million authorized shares and is looking to increase that figure 
to 250 million, as was voted upon at Thursday's Annual Meeting of 
Shareholders.  The announcement marks the third stock split for 
Micrel since their shares were first offered for public trading 
in December of 1994.

For the complete announcement, please go to:
http://members.splittrader.com/announcements/052600_1.asp

===

Friday, May 26, 2000, During Trading

Federally Charted Bank Declares Stock and Cash Dividends.
 
The Board of Directors at Elmira Savings Bank, FSB (Nasdaq: ESBK) 
announced during Friday's session plans to distribute a 5% stock 
dividend in addition to a regular cash dividend of 16 cents per 
share. Both dividends will be distributed on June 27th to 
shareholders of record as of June 13th. The stock dividend will 
be the third in less than three years. Elmira currently has 5 
million shares authorized with 763 thousand outstanding.

For the complete announcement, please go to:
http://members.splittrader.com/announcements/052600_2.asp

=== 

Friday May 26, 2000, After the Bell

HSP Shares Soar On the Big Board; Company Declares Split

Hispanic Broadcasting Corporation (NYSE: HSP), the largest 
Spanish-language radio broadcaster in the United States, 
announced after Friday's closing bell that the Board of Directors 
has approved a 2:1 stock split. The additional shares generated 
by the split are to be distributed on June 15th; the record date 
has been set for June 5th.  The announcement marks the second such 
stock split of Hispanic Broadcasting shares, the first being a 
2:1 in December.  There are currently about 54.4 million HSP 
shares outstanding; a vote took place at Friday's Annual Meeting 
of Stockholders to increase authorized shares from 100 million to 
175 million.

For the complete announcement, please go to:
http://members.splittrader.com/announcements/052600_3.asp



============
Sector Watch
============


As of Market Close - Friday, May 26, 2000 

                   Key Benchmarks
Broad Market       Bearish/Bullish  Last    Posture/Since  Alert
================================================================

DOW Industrials   10,000  11,400  10,299    Neutral   5.05
SPX S&P 500        1,400   1,500   1,378    BEARISH   5.23 
OEX S&P 100          750     800     736    BEARISH   5.23     
RUT Russell 2000     450     550     457    Neutral   5.05    
NDX NASD 100       3,200   4,000   3,101    BEARISH   5.23 
MSH High Tech        860   1,000     853    BEARISH   5.23 

XCI Hardware       1,360   1,600   1,299    BEARISH   5.19     
CWX Software       1,100   1,300   1,092    BEARISH   5.23 
SOX Semiconductor    960   1,200     910    BEARISH   5.19     
NWX Networking       900   1,100     953    Neutral   5.05
INX Internet         550     800     508    BEARISH   5.23 

BIX Banking          530     600     588    Neutral   5.11  
XBD Brokerage        400     500     412    Neutral   5.05    
IUX Insurance        540     620     628    BULLISH   5.16

RLX Retail           900   1,000     846    BEARISH   5.23    
DRG Drug             355     400     391    Neutral   4.28    
HCX Healthcare       710     800     793    Neutral   4.28    
XAL Airline          140     155     156    BULLISH   5.25 
OIX Oil & Gas        265     300     302    BULLISH   5.11  
 
Sector Watch Alert
==================    
Friday ended the week on a quiet note, as the major indexes stayed 
in a narrow trading range throughout the day. However, the 
volatility witnessed this past week was extreme, but it showed 
that the bulls are out there waiting for the right time to truly 
enter this market. Losers for the week include Internet (-8%), 
Retail (-6.5%), Russell 2000 (-5%), and the NASDAQ 100 (-5%). 
There are no current changes in posture.

This section of the investment advisory website highlights 
SplitTrader.com's stated Sector Watch across broad market indices 
and industry sectors. SplitTrader.com is the only website that 
states and regularly updates its Sector Watch across industry 
sectors.  Investors who reference this section first before 
planning their trades will gain a decided advantage. The time 
horizon of our stated Sector Watch is generally 2-3 weeks and is 
based upon a number of fundamental, technical and sentiment 
indicators.  

An important feature to our stated Sector Watch is the key 
benchmark levels. These levels represent important near-term 
support and resistance points. By viewing the sliding bar for 
each index, investors can quickly view the relative strength of 
our position and better anticipate when we are likely to change 
our Sector Watch. These benchmarks are determined using technical 
and sentiment indicators. It's important to realize that our 
Sector Watch may be contrary to the overall trend when compared 
to longer-term moving averages. This is because our stated Sector 
Watch is designed to help investors take positions before others 
see major trend reversals. For each sector, we highlight the index 
symbol, key benchmarks, last level, stated Sector Watch and the 
date we changed our position (since).  

For industry sectors signaling BULLISH, investors may want to 
consider long/call positions. For sectors signaling BEARISH, 
investors may want to explore short/put positions. For sectors 
flashing Neutral, investors may want to develop hedge positions.  
As investors allocate capital, we encourage BULLISH traders to 
pursue industry sectors that are trending higher and trading above 
moving averages and BEARISH traders to pursue sectors trading 
below declining moving averages. Investors can view these moving 
averages over a six-month chart by double clicking on the industry 
indexes links within the matrix.



==============
Event Calendar 
==============


For the week of May 29, 2000


Monday

Markets Closed in Observation of Memorial Day
 
Tuesday

Consumer Confidence      May    Forecast:  137.0   Previous:  136.9

Wednesday

New Home Sales           Apr    Forecast:  940 K   Previous:  966 K
Chicago PMI              May    Forecast:  57.0%   Previous:  56.4%
Leading Indicators       Apr    Forecast:   0.1%   Previous:   0.1%

Thursday

Initial Claims           5/27  Forecast:  280 K   Previous:  284 K
Auto Sales               May    Forecast:  7.4 M   Previous:  7.3 M
Truck Sales              May    Forecast:  7.8 M   Previous:  7.5 M
NAPM Index               May    Forecast:  55.5%   Previous:  54.9%

Friday

Nonfarm Payrolls         May    Forecast:  375 K   Previous:  340 K
Unemployment Rate        May    Forecast:   3.9%   Previous:   3.9%
Hourly Earnings          May    Forecast:   0.4%   Previous:   0.4%
Average Workweek         May    Forecast:   34.6   Previous:   34.6
Factory Orders           Apr    Forecast:  -3.0%   Previous:   2.8%


Week of June 5th

06/05 NAPM Services
06/06 Productivity - Rev.
06/06 Wholesale Inventories 
06/07 Consumer Credit 
06/08 Initial Claims 
06/08 Export Prices ex-ag.
06/08 Import Prices ex-oil
06/09 PPI
06/09 Core PPI



=========
Editorial
=========


Baan Goes Searching for a Savior
By  S.P. Brown

Beleaguered business software purveyor Baan (BAANF) has raised 
the white flag.  Last week, the Netherlands-based firm 
confirmed rumors that it was in talks with a number of 
potential buyers.  Companies rumored to be suitors include SAP 
(SAP), Oracle (ORCL) and PeopleSoft (PSFT), all Baan 
competitors that have vanquished the Dutch concern in the 
enterprise resource planning (ERP) arena.

For the complete article, please go to:
http://members.splittrader.com/editorials/052800_1.asp



====================================
Tuesday's Expirations by Payable Date
====================================


Pegasus Communications (PGTV) splits 2:1 
Charles Schwab Corp (SCH) splits 3:2 
AEGON N.V. (AEG) splits 2:1  
Intimate Brands, Inc (IBI) splits 2:1 
Limited, Inc (LTD) splits 2:1



=====================
SplitTrader.com Plays
=====================


The PLAY LEGEND:

SplitTrader.com Split Run Play Recommendations.

Split Run Play-of-the-Day is our number one split run play 
  recommendation for the following trading day. 
Updates are just that - updates on continuing plays
New plays are brand new for the newsletter.
Drops are closing plays that we feel have lost the advantage.

You will see:
Stock Symbol, Company Name, Closing Price, (change for the week)
Picked at date and Change since picked 

Terms:
BoD = Board of Directors meeting
ADV = Average Daily Volume
dma = daily moving average

>>at the SplitTrader.com website, we have comprehensive profiles 
for each stock that we are playing or have played in the past, as 
well as hundreds of others. Please take the time to visit the site 
to view the profile of the stock(s) you wish to learn more about. 
================================================================


TUESDAY'S SPLIT RUN PLAY-OF-THE-DAY
===================================


AES - AES Corp. $85.94 (+3.13)


Please see details in the New Split Run Plays section below.


Picked on May 28th @ $85.94
Change since picked +0.00

Chart = http://www.splittrader.com/charts/charts.asp?symbol=AES



NEW SPLIT RUN PLAYS 05/28/00
============================


AES - AES Corp. $85.94 (+3.13)

The AES Corporation and its subsidiaries are a global power 
company. AES operates and owns several electric power plants with 
a total capacity of 36,675 megawatts (MW). AES also is currently 
in the process of adding approximately 6,646 MW to its operating 
portfolio through its construction of new plants. They sell 
electricity to electric utilities, regional electric companies or 
wholesale commodity markets known as power pools. AES also sells 
electricity directly to end users through its distribution 
business.  In the news, the AES Corporation announced that it had 
further amended its offer to purchase shares of C.A. La 
Electricidad de Caracas (ELDAY), at US $0.57 per share on Friday. 
They also filed to sell up to $4 billion in debt securities, 
common and preferred stock, warrants, depositary shares and stock 
purchase contracts and units. The stock moved higher on the news, 
trading as high as $86.81 before pulling back to close at $85.94 
on average volume. Regarding their upcoming split, the Board of 
Directors announced a 2:1 stock split on 4/18 to be paid in the 
form of a stock dividend on 6/1.  The stock has been trending up 
and we feel that the trend will continue as we are now only 3 
sessions away from the payable date and utilities have been hot 
lately. Going forward, the stock has support at $85 with stronger 
support at the 10-dma, currently at $83. Resistance is just above 
Friday's intra-day high at $87 and then $90.  Look for a bounce 
off of $85 or a move above $87 on midday volume of at least 
500,000 shares to open new positions. Confirm market momentum and 
sector direction before initiating new plays. We recommend using 
trailing stops with a quick exit by 5/31.  

Picked on May 28th @ $85.94
Change since picked +0.00

Chart = http://www.splittrader.com/charts/charts.asp?symbol=AES

===

CPN - Calpine Corporation $101.00 (-5.63)

"Indecision mars all success; there can be no good wind for the 
sailor who knows not to what port he is bound". I doubt Oliver 
Wendell Homes was thinking of the individual investor when he 
made that statement, but it sure is true. When the general 
markets topped out in March, were you looking for other sectors 
or indexes turning up? If you were, you may have run across 
Calpine Corporation. Calpine Corporation is an independent power 
company that is engaged in the development, acquisition, 
ownership and operation of power generation facilities and the 
sale of electricity predominantly in the United States. CPN is 
focused on two key technologies: combined-cycle natural gas-fired 
and geothermal power. Gas-fired power plants represent the 
fastest growing segment of the U.S. power industry. Geothermal 
energy is an important niche market for Calpine. It is found in 
areas of the world where heat sources are close to the surface. 
CPN has received the attention of some major brokerage houses as 
of late. On Friday, Morgan Stanley Dean Witter upgraded CPN to a 
Strong Buy. Earlier in the month ABN AMRO and CIBC World Markets 
both upgraded the stock. On June 9th the company will split its 
stock for the second time since going public in 1996. The most 
recent was in October of 99. In April, CPN, which has a Relative 
Strength ranking of 99 out of 100, beat earnings estimates by .02 
cents. The current bear market is forcing investor to seek refuge 
in the safety of areas such as utilities. Where better than to 
park your cash with a company like CPN, a standout leader in this 
sector? On Friday, the stock traded 4% higher on less than half-
normal volume of 378K shares. Thursday the stock bounced off the 
50-dma and formed a perfect Doji, (a Japanese candlestick symbol 
indicating indecision). Friday the indecision was made clear and 
the stock gapped open by 2 bucks. Support is now established at 
the 50-dma at $95. Resistance testing will begin at the 20-dma at 
$102.50, $104 and the $110. Open new positions on big volume and 
good positive momentum. Consider run-ups to resistance levels on 
low volume suspect, and be quick to take any profits that may 
exist. Use a hard bounce off support also as an entry point. I 
know this is redundant, but confirm the overall sector and market 
movement before engaging into battle. 

Picked on May 28th @ 101.00
Change since picked 0.00

Chart = http://www.splittrader.com/charts/charts.asp?symbol=CPN

===

KEM - KEMET Corp. $60.50 (-15.50)

Perhaps an upcoming split will pump a little juice into this 
capacitor manufacturer and separate it from last week's collapse.  
The 2:1 split was announced on May 15th and it will be payable 
June 1st.  Last week's collapse was most curious because the 
Company sports some pretty good fundamentals including last 
quarter's earnings that beat the Street's estimates by a whopping 
$0.11.  At least one analyst, from Needham & Co, used the drop as 
an opportunity to reiterate his Strong Buy recommendation.  By 
all accounts demand for this Company's products remains very 
strong and should continue for many quarters to come.  The 
technical picture is a bit cloudier.  Wednesday's collapse was 
devastating and on extremely high volume.  The spike down went to 
the April lows and it appears that the drop may have been a final 
capitulation that took out a ton of stops because the stock 
immediately bounced and has staged two days of consolidating.  
The MACD is still very negative but the RSI is indicating an 
oversold condition that could enable the stock to bounce a little 
more, especially with a split coming up.  OBV took a hit, but it 
was previously strong.  A move above Friday's high at $60.88 
could indicate at least a run to the next resistance point at 
$67.  Unfortunately, any real support is all the way back at the 
spike low, so do not stick around if the stock starts dropping 
again.  We will exit this position before Thursday's split.

Picked on 28th @ $60.50
Change since picked 0.00

Chart = http://www.splittrader.com/charts/charts.asp?symbol=KEM



SPLIT RUN PLAY UPDATES 05/28/00
===============================


MTZ - MasTec $62.56 (-14.00)

Looking for a communications stock with solid earnings, great 
growth prospects and a low PE? MTZ may be the answer.  Investors 
are scared and if they are going to put money to work they will 
probably look for a little safety in the fundamentals.  The first 
split for this Company in eons was announced recently and the 
Company has set a 3:2, payable June 19th.  Deutsche Banc Alex 
Brown seems to think this Company has some pretty good long term 
prospects and they raised their rating to Strong Buy from Buy 
last week.  All of these positives were not enough for the stock 
to do anything positive.  Bottoms are very difficult to pick and 
this is an aggressive play.  Thursday we suggested making sure 
the stock could test the lows before going long.  Friday's 
selling got the stock pretty close to the low before bouncing.  
If this is truly a double bottom we may be getting in at the 
right time.  Support is now $60.  RSI is near the bottom and is 
indicating an oversold condition.  The MACD is very negative and 
the question is how low it can go before turning up.  Be cautious 
with this one.  Perhaps half positions are in order until the 
stock can prove it has made a short-term bottom.  We are setting 
a stop at $59.88.  There is resistance at the 10-DMA at $73.75 
followed by the 50-DMA at $77.25.  If we are not stopped out we 
will be exiting this position before the split.

Picked on May 25th @ $66.38
Change since picked -3.82

Chart = http://www.splittrader.com/charts/charts.asp?symbol=MTZ

===

VSH - Vishay Intertechnology $70.00 (-17.00)

"I do the very best I know how - the very best I can; and will 
mean to keep on doing it until the end". I don't know under what 
circumstances Abraham Lincoln made that statement, but it sounds 
a lot like the CEO of Vishay Intertechnology. On Friday the main 
man at VSH, Dr. Felix Zandman appeared on CNBC and reiterated his 
position that the fall in share price for their stock is 
unwarranted. Recently the company, which is a worldwide leader in 
the manufacture and distribution of passive electronics, stated 
they would beat earning estimates for current the quarter. Dr. 
Zandman vehemently supported that position and went so far as to 
say they would beat their revised estimates as well. VSH makes 
the little resistors and capacitors for staple items such as cell 
phones, radios, computers, printers, and household appliances. 
Between the CEO and the "talking heads", the stock had a very 
volatile week trading as low as $58.06 and as high as $88.50. 
These big swings may have led our readers to view us as slightly 
schizophrenic, dropping and then adding VSH back on the same day. 
However, the Electronic Industry has quietly slipped into the top 
5 sectors currently leading the market, so we felt it best to 
stick with the winners. All the focus on VSH caused trading 
volume to increase by 60% on Friday to 2.2 million shares. The 
stock is hovering just above support at the 50-dma at $68.00. 
Expect resistance at the 5-dma at $74, the 20-dma at $78.80, and 
then $85. Use a bounce off the 50-dma with good volume as a 
possible entry point. Wait for confirmation in the sector and the 
broader markets before engaging. Know your out before you get in 
and take your profits quickly. A close below the 50-dma will 
indicate a short circuit to our plan and will trigger our stop.

Picked on May 25th @ $69.18
Change since picked +0.82

Chart = http://www.splittrader.com/charts/charts.asp?symbol=VSH



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