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Strategies & Market Trends : Buying SPLITs and other Strategies -- Ignore unavailable to you. Want to Upgrade?

To: Terry Whitman who wrote (833)	5/10/2006 2:26:41 PM
From: Terry Whitman	Read Replies (2) \| Respond to of 1163

Thanks to Dolan for reminding me of the Split strategy. I went back over the past month and checked it out on several announced splits. I picked 10 splits randomly, only qualifiers being that it was a positive split, and was announced in the past month. The original strategy worked superbly on this sample- 8 out of the 10 were winners. The average return was 11.5% before taxes and commissions. This is almost too good to be true for a 10 day holding period- but it compares pretty well with the original study. The Buy was taken at the close of the split announcement day, unless it was after hours, which moved it to the following day's close. The sell was 10 days after the entry. That's it! It was a positive period for the overall market, but nowhere near 11%. The average return of the SPX over the same intervals was 0.75%. I'd like to test the strategy in a falling market. Don't know where I can get historical split announcement dates, however. So that may have to wait for the future- unless someone can help me out there..

To: Terry Whitman who wrote (833)	5/11/2006 3:55:47 PM
From: dolan	Read Replies (1) \| Respond to of 1163

Thanks for the reply. Unfortunately at my free level of S.I. it wont let me go back to post # 1. But I saw your subsequent post about the 10 day trading period. I will research it. My system is to wait till sometime after the split announcement on a stock with volume > 300K shares. If the announcement is more than 30 days before the ex dividend, I wait. I wait till the price comes down to the split announcment level and buy and hold till the day before the split. Its been working well, till today. Everything is down today. I have backtested it and it seems to work ok in down markets too. I will backtest yours. Thanks.