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Dartline™

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July 3 , 2007, 7:30am

... The S&P 500 index closing at 1519.43 16.08 (1.07%) will establish a test of the 1525 -1535 range. Look for higher equity prices if 1535 is breeched to the 1590 level as large capitalization stocks continue to extend their recent upside trend, while most small caps will find the going a bit ruff. Two key factors behind the bullish climate are: (1) Projected robust earnings for the current quarter and (2) The nation's factories, plants and utilities expanded at a faster pace in June, suggesting positive consumer spending is boosting confidence among manufacturers and investors even as prices for raw materials rise. The Institute for Supply Management said Monday that its manufacturing index rose to 56 in June. The reading marked the fifth consecutive month of growth for the manufacturing sector and the 68th consecutive month of growth for the overall economy. ... The fly in the mix remains inflation. Dartline is closely watching for a spike in the prices manufacturers paid for raw materials and believes that the biggest risk to the economy is if inflation fails to recede. Out-of-control inflation can eat away at paychecks, investments and standards of living. That could dampen spending by American consumers, which has been an engine for growth in the global economy and a robust domestic stock market. At this point a minor trend to the upside indicates that costs may give the Fed an excuse to rise interest rates. Such an event will be a major directional change to the market. For the moment, watch the action of the S&P 500 and "play" the momentum, since the Fed will not act until early '08.

... July 2, 2007, 3:04 ... With the S&P 500 at 1516.69 13.37 the index has underlying support to test the 1525 range. Use this opportunity to add to existing positions, while taking profits on overbought issues. As the dollar falling to 26 year low against the British pound, and oil closing above $71 a barrel are factors the market cannot deny over the longer term. Yet, the S&P has pointed upside direction, and Dartline rarely questions the tape.

.. . Purpose of the arrows: - projecting that DJIA, Nasdaq and S&P barometers will close higher at the end of the day. - projected consolidating barometers with limited directional action. - projecting all three barometers declining for the days.

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View From the Bottom - A roundup of the day's performance

... July 3, 2007, 1:00pm (early closing) ... Day Trader for the day shows no activity. ... No realized gain or loss adjustment to the Stocksmirf Fantasy Hedge Fund.

... July 2, 2007, 4:00pm .... Day Trader for the day shows a gain of $6,000.00. ... No realized gain or loss adjustments to the Stocksmirf Fantasy Hedge Fund, except as stated above.

July 2, 2007, 11:35am ... As of March 31, 2007, open positions were (1) BCRX suggested as on 03.02.07 at $9.31 and $9.88 was closed out at $9.98 on 04.16.07; (2) VEGF suggested as on 02.08.07 at $0.50 was closed out on 04. 23.07 at $0.36; (3) SCT suggested as on 03.05.07 at $4.36 remains an open position; (4) FCFS suggested as on 03.26.07 at $22.16 and closed out on 06.11.07 at $25.34; (5) CVTX suggested as on 03.26.07 at $6.75 and closed out on 04.16.07 at $8.19; (6) LMRA suggested as on 03.28.07 at $5.07 and closed out 06.01. at $4.65; (7) RBN suggested as on 03.30.07 at $36.60 and remains open. (8) MOS suggested as on 03.30.07 and remains open.

... Net change of realized and unrealized gains and losses is a gain of $804,200.84 as of 07.02.07, 11:51am. Total SFHF portfolio gains on initial capital of $2,500,000.00, including unrealized gains of $923,512.00, from 10.06.06 to 06.30.07 is $10,675.879.00.

*** based on the weighted portfolio value adjusted daily.

.. July 3, 2007

... 11:58am ... SELL COVERED CALL on CSUN - (FTUGV.X) - Jul '07 strick price $12.50. Last bid $0.50.

... 9:40am ... BUY #2 CSUN - last $12.44. Take advantage of overreaction to supply shortages, which may reflect lower margins.

... 9:32am .. CSUN opened at $13.66.

... 9:31am ... NOVA opened at $6.11.

... 8:35am ... BUY (at opening) China Sunergy Co. Ltd. (CSUN) - last $14.17 (premarket) . A specialized solar cell manufacturer, CSUN has expanded operating base to enhance shareholder values. With true float of 9.5 million shares, and further accumulation by European investors, CSUN has sufficient fundamentals to warrant continuous gains into '08. BUY as a mid-term speculation with projected target to $25. EXIT POINT not established at this time.

... 7:30am ..BUY (at opening) NovaMed Inc. (NOVA) - last $6.09 (premarket) . NOVA operates 38 mobile surgery centers and owns an optical laboratory business. Growth via acquisitions in the ambulatory surgery centers is likely as physician owners need the managerial expertise that NOVA offers and see the potential to create liquidity in their personal investments. The recent $75 million funding with convertible notes with a yield of 1% due 2012 creates more flexible leverage, and allows lower debt costs. Management controls 27% of float, while institutions increasing ownership to 65% suggests a tight supply curve. BUY as a mid-term (6 months) commitment to the $9.50 - $10.75 range. EXIT POINT at $9.50.

... July 2, 2007, 2:49pm ... BUY Trump Entertainment Resort Inc. (TRMP) - last $10.30. TRMP said no deal to a deal - don't believe it. Posturing suggests a deal can be had at $18.00 and the directors will buy. Dune Capital Management LP may emerge as the prime bidder. At current price, TRMP warrants consolidation play to the $14-$15 range without a deal. BUY for near-term speculative play. No EXIT POINT at this stage.

10:14am . BUY Macy's Inc. (M) - last $40.07. . M trades at 12.75 forward earnings with potential takeover value at $52.50 suggests an excellent opportunity to participate in future growth with limited downside. BUY with near term target of $52.00. Check call options MKH.X at $3.30; MKV.X at $2.75 and MKI.X at $1.55 to leverage advantage of proposed T/O.

Ticker	Last Trade	Direction	Entrance Point	Exit Point
NOVA	$6.08		$6.08	$9.50

P/E Ratio:	26.2
Forward P/E Ratio:	13.97
Float Shares2:	16.9 M (true)
Company Guidance:	*
Recommendation3:	*
Support4:	5.85 near-term
Resistance5:	8.74
Under Accumulation6:	yes
Under Distribution7:	limited

... DAY TRADER

... July 3, 2007, 7:30am. No action.

July 2, 2007... 3:48pm ... COVER SHORT on IOC - last $24.10. Take profit.

... 12:19pm ... SHORT Interoil Corporation (IOC) - last $24.70. IOC under distribution with limited buying interest after five point run up. Cover at $23.80.

.... From the SFHF portfolio to closeout unsettled positions

... July 3, 2007, 7:30am. No action.

July 2, 2007, 12:08pm. .... No action.

___________________________

Net liquidation value of Stocksmirf Fantasy Hedge Fund (SFHF) portfolio for the period ending 06.30.07 ............. 10,675,979.00

REALIZEDGAINS LOSSES FOR THE MONTH OF OCTOBER '06 in the SFHF portfolio ........................ ......... $277,601.00

REALIZED GAINS LOSSES FOR THE MONTH OF NOVEMBER '06 in the SFHF portfolio. ...............................$338,049.00

REALIZEDGAINS LOSSES FOR THE MONTH OF DECEMBER '06 in the SFHF portfolio ...... ......................... $371,020.00

REALIZEDGAINSLOSSES FOR THE MONTH OF JANUARY '07 in the SFHF portfolio .....................................$615,500.00

REALIZEDGAINSLOSSES FOR THE MONTH OF FEBRUARY '07 in the SFHF portfolio ....................$1,092,241.00

REALIZEDGAINSLOSSES FOR THE MONTH OF MARCH '07 in the SFHF portfolio .......................... $2,941,500.00

REALIZEDGAINSLOSSES FOR APRIL '07 TO June 30 '07 in the SFHF portfolio ...............................$2,540,068.00

UNREALIZED GAINS (LOSSES) in the Stocksmirf Fantasy Hedge Fund portfolio.

July 3, 2007, 1:00pm .......................... $703,900.04

July 2, 2007, 4:00pm .......................... $858,500.04

June 29, 2007, 4:00pm ........................$712,445.00

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BEAT THE DART is a classic term originally applied in 1898 when J.P. Morgan threw a dart at the stock table page of the New York Times. Whatever the dart hot, he purchased the stock and made a fortune. In time others used the procedure with startling results. The dart picks beat professional analysts 65% of the time!
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1 Based on market conditions and other factors previewed in Best Ideas, changes can happen at any time. Accordingly, continue to log-in on a regular basis to maintain maximum performance.
2 Float - Available stock position in the hands of the general public of the total outstanding.
3 Institutional recommendations during the last 30 days.
4 Under technical analysis the term 'support' refers to a point in the stock's price that is immediately maintained and usually suggests an entrance point to purchase.
5 Under technical analysis the term 'resistance' suggests that a point in the stock's price has been reached and further gains are temporarily unlikely.
6 Under Accumulation occurs when abnormal buying in a particular stock takes place, and suggests that inside information may be at play and anticipates future price appreciation.
7 Under Distribution suggests that insiders and others are stealth fully selling on the belief that lower stock prices will occur.
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