Stock Split

[dankdavies22]

New to the bulletin board and GET, was wondering how can you use EW if there is a stock split? My data shows a rise or drop in price and obviously the FIB's are going to be off.

[soylent]

SPLITS, general news, and even earnings usually flow into whatever wave formation is currently forming. I ignore these events.

(Though, it does make sense to have SOME idea about a company e.g. Things like buyouts tend to completely invalidate any form of TA. Earnings are also a dangerous time).

As an example, a SPLIT announcement may accelerate the completion of a WAVE 4/5 and go into an A-B-C shortly there after.

There may be some % for playing these news events, but I keep looking for pure-plays and try to ignore the news -- I even go so far as to 'avoid the news'. The fewer external events, the better.

BUT: If any long-time AGET'rs have any background on using external events, I'd love to hear!

[MR]

Re: Stock Split

Hi,

Originally posted by dankdavies22
New to the bulletin board and GET, was wondering how can you use EW if there is a stock split? My data shows a rise or drop in price and obviously the FIB's are going to be off.

Treat a stock that splits as if you are looking at it brand new. Delete any previous analysis. Reapply totally new calculations. Factor into your equation jus a little more risk to help you make adjustment for the split.

If you still feel really good about your analysis and the stock, as a general comment, don't totally rule out a stock trade just because of the split.

[soylent]

Marc!

Welcome back!

It's been lonely in here w/o your comments!

[MR]

Hi,

Just stopped in for a few moments. My trading office at home is almost completed. Couple more days work and then back to the grind stone again! Anxious to be trading again, looking forward to talking to old friends here again!

Gotta go, take care, best wishes, marc

[Guest]

Marc,

You will have to post some pictures of your new workplace for us aspiring to get where you are. Of course your pictures will have to be marked up commmensurate with your previous excellent technical analysis...

Regards,

Steve