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July 9, 2007

... At 1530.44, the Standard & Poor's 500 Index is within 10 points of an all-time closing high, while last week U.S. stocks showed little upside action as rising oil prices and high bond yields concerned investors. Adding to the drama is the start of the current earnings season kicks off today with reports expected from six S&P 500 Index companies : Alcoa (AA) - last $41.78; General Electric (GE) - last $38.48; Yum Brands (YUM) - last $34.05; Pepsi Bottling Group (PBG) - last $34.52; Marriott International (MAR) - last $47.11; and M&T Bank Corp (MTB) last $108.70. The big player in this group is Alcoa, and what the company reports will set the tone for the underlying market. Dartline projects an upside surprise for Alcoa because of the weak U.S. dollar. Like many companies that make up the S&P index come from overseas, when a foreign currency is strong, the conversion of earnings from abroad translates into more dollars. Thus, it's a big factor and will give the general market sufficient rocket fuel to increase values. However, if Alcoa fails to meet expectations, look for a near trend sell-off. ... Estimates for second-quarter earnings growth as tracked by Dartline have improved to a rate of 4.7% from 3.9% on April 1, thanks mostly to upward revisions for the energy sector. The overall earnings picture appears positive, but may not be enough to help the market out of its "downward trend" this week if long-term bond yields once again rise to 5.2% or above. Good reports about the health of consumer spending, a key driver of economic and corporate profit expansion are bullish factors for equities in the mid-term. Yet, the higher yields on long-term bonds over the past month have served as a weak spot for equities because investors have been nervous about the impact of higher-bond yields on the housing market and consumer's wallets, With the majority of U.S. mortgages set at fixed rates, that could cause a more severe decline in an already sluggish housing market. As for now, follow the trend established by S&P 500 and what Alcoa does.

July 6, 2007... 10:53am ... Macy's (M) suggested at $40.07 on 07.02.07, is 2.32 and trading at $42.04 with increased volume to confirm our belief that a takeoff is likely.... 8:30 am ... Nothing happened yesterday to create problems for the upside direction of the S&P 500 index. Starting today at 1525.50, the 52-week high of 1540.56 is a mere few days away. Remain aggressive as the general market continues its rotation. ... As previously reported, the underlying strength to the equities markets can be directly traced to the ISM manufacturing index that rose in June to the highest level since April 2006. Both manufacturing and nonmanufacturing surveys point to the economy picking up momentum as the second quarter drew to a close - an encouraging sign for growth in the third quarter, and bodes well for the coming earnings session. ... New-orders index fell in June to 56.9% from 57.4% in May, and positive to maintain order growth going forward. .... A further plus for the economy was the employment index rose to 55% from 54.9% in May. .... Fourteen of 18 industries were growing in June, led by construction, real estate and entertainment. No industry was contracting.... 8:20am ... The Labor Dept. showed that 132K jobs (Dartline 125K) were added in June while payroll figures for May and April were upwardly revised to account for a net gain of 75K new jobs. Hourly earnings rose 0.3%, matching economists' forecasts and bringing the year/year rate to 3.9%, while unemployment held steady at a low 4.5% rate for a third straight month. The futures market remains indecisive following the data, still indicating a slightly lower open for equities; but bonds are decidedly weakening in response as the yield on the 10-year note (-12/32) climbs to 5.19%. ... 7:30am ... The Labor Department reports its June job figures on Friday. Dartline expects that 125,000 non-farm jobs will be added to the nation's payrolls and that the unemployment rate to be steady at 4.5 percent - excellent to maintain upside momentum for equities.

July 5, 2007, 7:30am... Extending Monday's rally, the S&P 500 index closed at 1524.87 5.44 and within striking distance to test its 52-week high of 1540.56. Look for higher values with the start of the quarterly earnings. Excessive fund flows suggests that professional investors are making larger bets on further expectations of stronger-than-expected earnings results. ... Two factors require consideration going forward: (1) $80/bbl oil and (2) yield on 10-year Fed notes above 5.15% are probabilities within next three months - both conditions would deflate equity prices. For now, remain aggressive, but watchful.

.. . 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 9, 2007, 4:00pm ... Day Trader for the day shows net gain of $8300.00. No realized gain or loss adjustment to the Stocksmirf Fantasy Hedge Fund portfolio, except as stated herein.

July 6, 2007, 4:00pm .... Day Trader for the day shows a gain of $12,980.00. ... No realized gain or loss adjustments to the Stocksmirf Fantasy Hedge Fund, except as stated herein.

... 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.

.. July 9, 2007 ... 1:30pm ... BUY Wolverine Worldwide Inc. (WWW) - last $28.22 At 15 times forward earnings to 12.30.08, WWW is worth five points more in the current investment environment. With a true float of 27 million shares and 91% institutional holdings, the stock can react to any positive statement by management. BUY for near term move to $32.00.

... 10:42am ... BUY Helen of Troy Ltd. (HELE) - last $28.60. HELE., a personal-care and household products maker, will report earnings and surprise to upside tomorrow on expanding product lines during the year and improving fiscal 2008 guidance. The company expects a profit of $2 on revenue of more than $660 million for the year ending Feb. 28, 2008, while most analysts are looking for a profit of $1.97 on revenue of $674.5 million. More efficient manufacturing and supply chain processing to reduce product development cost and increase speed to market has started to enhance bottom line. HELE is a mid-term BUY to trade in the $35-$37 range based on forward P/E valuation of 11.55 times.

7:30am ... ... BUY Sensient Technologies Corporation (SXT) - last $25.74 SXT, a maker of colors, flavors and fragrances, is due to report 2007 second quarter earnings on July 16th and should beat estimates of $.43 by 15% and to raise guidance. With completion of a new $300 million revolving credit facility, replacing its $225 million unsecured facility maturing in 2012, SXT has more flexibility to drive growth. Selling at 15 times forward earnings, SXT is a value play with mid-term upside to the low 30s. Furthermore,, with limited management control and institutional ownership above 90% SXT is an excellent takeover fit for International Flavors & Fragrances *IFF) or McCormick & Co. (MKC), at 22-25 times forward earnings.

... BUY Traffix Inc. (TRFX) - last $5.75. TRFX is a premier interactive media company with a superior business model and management dedicated to execute it. Commenting on the results for the prior quarter (02.28.07) by Mr. Jeffrey L. Schwartz, Chairman and Chief Executive Officer of Traffix, are telling: , "We continued our focus on growing the business, and are proud to report a return to profitability after a tough fourth quarter in fiscal 2006. We were able to grow our top line revenue by 6%, on a comparable basis, and by 5%, on a sequential basis, while improving income from operations, net income and diluted earnings per share, on both a comparable and sequential basis." Mr. Schwartz continued, "We believe the balance of fiscal 2007 will continue to be profitable, with our financial position remaining strong, and liquid, as we continue to seek out strategic opportunities that will fuel our future growth." Fundamentals are adequate with improving operating margin of 5.01% and no long term debt, TRFX is capable to expand revenue without altering bottomline performance. With a true float 9.29 million shares and institutional sponsorship increasing, TRFX is a near-term speculative BUY with EXIT at $10.50.

Ticker	Last Trade	Direction	Entrance Point	Exit Point
SXT	$25.74		$25.74	*

P/E Ratio:	17.82
Forward P/E Ratio:	14.82
Float Shares2:	38.9 (true)
Company Guidance:	*
Recommendation3:	*
Support4:	24.95 near-term
Resistance5:	30.34
Under Accumulation6:	yes
Under Distribution7:	no

... DAY TRADER

... July 9, 2007

... 3:30pm ... COVER SHORT on ORBK - last $21.90 .

... 3:17pm .... COVER SHORTS #1 and #2 on IMN - last $35.71 .

... 12:34pm ... SHORT #2 on IMN - last $35.75 .

... 9:46am ... SHORT Orbotech Ltd. (ORBK) - last $21.86 . Trade down to $20.50 likely.

... 9:35am .... SHORT Imation (IMN) - last $36.54. Under distribution with limited buying interest.

July 6, 2007 ... 2:44pm ... COVER SHORT #3 on HWAY - last $46.75. Take profit.

... 1:03pm ... COVER SHORT on PMTC - last $16.93 . Take profit.

... 12:47pm ... SHORT #3 on HWAY - last $46.99.

... 12:37pm .. COVER SHORT on LOCM - last $13.00. Take profit.

... 12:22pm ... COVER SHORT #2 on HWAY - last $46.81 . Take loss.

... 11:40am ... SHORT Local.com Corporation (LOCM) - last $13.30. After run up, LOCM appeared under limited distribution that may accelerate.

... 11:22am ... SHORT # 2 on HWAY - last $46.02 .

... 10:24am ... COVER SHORT HWAY - last $46.30. Take profit.

... 10:18am ... COVER SHORT on GENZ - last $61.58 . Take profit.

... 9:51am ... SHORT Parametric Tech (PMTC) - last $17.31 . Further decline as buying interest limited to near zero.

... 9:44am ... SHORT Healthways Inc. (HWAY) - last $47.05 Masd contracting, fall to $46.50 likely.

... 9:39am ... SHORT Genzyme Corporation (GENZ) - last $62.00. Under selling pressure with limited upside. Trade to $60.95.

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

... July 9, 2007, 7:30am. No action.

July 6, 2007, 7:30am. 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

REALIZEDGAINSLOSSES FOR THE MONTH OF JULT 07 to date in the SFHF portfolio ........................ $37,200.00

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

July 9, 2007, 4:00pm .......................... $938,890.13

July 6, 2007, 4:00pm ...........................$864,127.97

July 5, 2007, 4:00pm .......................... $743,900.02

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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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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