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August 8 2007, 4:00 pm

... At 1,497.40 the S&P 500 index close maintains upside momentum.

... S&P 500 index failed to hold 1490 predicts weakness and downward test at 1775. Index must close above 1775 to remain positive. Take profits, reduce laggards.

... error in transmission. ... 7:30 am ...Excellent sign for the S&P 500 index to closed above 1775, at 1476.22. Look for more gains as the Federal Reserve assured investors that the economy should keep growing moderately. Whether it's true or not remain immaterial. Follow the tape, and trade the market on both sides. Right now the delicate balance between jobs, wages and equities are being offset by higher energy price and weakening consumer liquidity. Further weakness in consumer spending would make equities expensive and subject them to a deeper correction. Beware of the October winds

August 7, 2007, 7:30am .... The S&P 500 Index closed at 1,467.67 34.61 to create stability after last week's huge losses. With the extreme volatility, change the trading range from 1435 to 1495, and use that zone to plan participation on both sides of the market. Apply patients, take profits, reduce positions and conserve cash is the game plan since credit worries haven't disappear in a day. .. Wall Street's favorite barometer of investor fear, the Chicago Board Options Exchange Volatility Index (VIX) fell as U.S. stocks surged. The VIX closed at 22.94, down 8.82 percent after posting a 52-week high earlier in the session at 26.47, its highest level in four years. The index acted as if all of the financial worries over the past few months evaporated overnight.

... August 6, 2007, 7:30am ... The S&P 500 index closed at 1,433.06 39.14 on credit-market-related concerns and a weak jobs report. With technical support at 1450 long gone as confirmed by Dartline on 08.02.07 " ... Only a few point separates technical disaster from the index falling below its 200-day moving average at 1450, and therefore too much uncertainty for the market to trade up with conviction, " the next important test would be 1313.35 last hit on 09.05.06. The current action of the index suggests a recession starting in late 2007 and lasting through most of 2008 based on a 15% contraction on S&P 500 per share earnings to mimic a market decline of 12%-15% as during 1974-1975 and 1990-1991. Based on the anticipated scenario, the S&P 500 index could weaken to 1233, representing a 271 point decline from 1450. Before Dartline can test this forecast the index may find temporary support at 1313, and if it does occur would be a buyers' trap. ... It would be prudent to step back and assess from the perceptive of history - you know, the sum total of things that could have been avoided. You only need to review the positive things that have taken place over the past few years in the market, whether its private-equity, share buy-backs and earnings, such dynamics can be traced to an easy money environment. Thus, what companies are reporting now is less relevant than future guidance. Indeed, very few S&P 500 companies have issued forward earnings during the second quarter, which suggests a growing uncertainty about the near-term and mid-term prospects. A growing number of market strategists and economists are again suggesting that the slumping housing market, and now a possible credit crunch, have the potential to severely impact the U.S. economy, and even possibly tip it into recession - the new word for depression. ... Since global growth and liquidity are critical factors fueling U.S. multinationals, which has overcome domestic economic and credit woes, key data on second-quarter productivity and labor costs, both important gauges of inflation and growth, as well as June consumer credit data will be published on Tuesday. June wholesale trade figures will be released on Wednesday. ... Reduction in the prime interest rate? Problems in the subprime mortgage market have spread into other parts of the home loan market, causing the private and secondary mortgage market to freeze up, and limiting the availability of home loans. Contraction of leveraged-loan and high-yield debt markets, widening corporate credit spreads and derailing financing for leveraged buyouts may encourage the Federal Reserve to cut interest rates. Indeed, the central bank can alleviate the stress on equities and bailout the bulls. Don't bet on it! The Fed cannot move to lower rates and is forced by external circumstances to maintain it at 5.25%. Even a quarter point downward adjustment would further weaken the already troubled U.S. dollar and set off hyper-global inflation, while materially reducing U.S. exports, hiking values for commodities and imports into the U.S.

.. . 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

... August 8, 2007, 4:00pm ... Day Trader for the day shows no activity. ... Adjustments to the Stocksmirf Fantasy Hedge Fund ("SFHF") portfolio shows: (1) sold XIONG for a loss of $78,000.00; (2) sold AXPJM.X for a loss of $10,500.00; (3) sold CQLTL.X for a gain of $248,750.00. Net realized change for the day in Stocksmirf Fantasy Hedge Fund portfolio is a gain of $160,250.00.. For the month of August '07 to date SFHF shows a loss of $185,110.00..

... August 7, 2007, 4:00pm ... Day Trader for the day shows net gain of $57,800.00. Adjustment to the Stocksmirf Fantasy Hedge Fund ("SFHF") portfolio shows: (1) closed out of AHM for a loss of $790,000.00; (2) sold AHS for a gain of $15,800.00. Net realized change for the day in the Stocksmirf Fantasy Hedge Fund portfolio is a loss of $716,400.00, and for the month a loss of $457.030.00, , excluding unrealized gains or losses.... error in transmission .. No posting for 08.07.07 until after the day's close.

... August 6, 2007, 4:00pm ... Day Trader for the day shows a gain of $43,370..00. ... Adjustment to the Stocksmirf Hedge Fund ("SFHF") portfolio shows: (1) sold ABD for a gain of $40,500.00; (2) sold put options in EXPTH.X for a gain of $70,500.00; (3) sold put options in EXPTI.X for a gain of $105,000.00. Net realized change for the day in Stocksmirf Fantasy Hedge Fund portfolio is a gain of $259,370.00, excluding unrealized gains or losses.

... Total SFHF portfolio gains on initial capital of $2,500,000.00, including unrealized losses of $234,712.28, from 10.06.06 to 07.31.07 is $11,376,052.14.

... ... August 8, 2007

... ... 7:30am ... BUY Abraxis Biosciences Inc. (ABBI) - last $21.16. ABBI is in the development, manufacture, and marketing of injectable products for the treatment of cancer and other life-threatening diseases. The company plans to separate its hospital products business from its proprietary drugs business, creating two separate publicly traded companies by the third quarter of '07. Abraxis shareholders will receive one share in each of the two companies. The hospital-products company, which makes indictable drugs, will be called APP Inc. The proprietary product unit will be called Abraxis BioScience, and focus on developing the company's "nab" technology platform and the development of cancer drugs. The company has lined up $1.45 billion in credit, with $1 billion slated for use by Abraxis and a portion used to pay down existing debt. As separate public companies the combined market value should increase by 70%. As a long term play the combined companies are worth $49. With an excellent drug pipeline, superior fundamentals and capable management, ABBI is well position for sustained growth and defensive for a rocky general market.

.... 7:30am ... BUY Argon ST, Inc. (STST) - last $21.06. STST is a systems engineering, development, and services company, provides command, control, communications, computers, intelligence, surveillance, and reconnaissance systems and services to defense and intelligence customers .Total backlog at end of last quarter was $309.3 million, representing a 41% increase in backlog over the last twelve months. With earnings due of the 9th, STST should beat consensus by 15% and at 16 times projected forward earnings, a move to the $24-$26 is likely in the near term

... 7:30am ... SHORT Hillenbrand Industries Inc. (HB) - $65.01. HB manufactures and sells medical technologies and related services to the health care industry worldwide. With profit margin growth limited, HB appears over priced on a fundamental basis, while the technical's suggest limited upside. Contract to the $54-$58 range can be triggered by the company's earnings report due August 9th. EXIT POINT set at $57.

August 7 , 2007

... 12:24pm ... BUY in the money calls in FRE - FREIL.X - Sept -7 $60 strike - last ask $5.10.

.... 11:58pm ... BUY Freddie Mac (FRE) - last $62.98 FRE driven by reports that company asked its federal regulator to let it buy more home loans in order to lift the sagging mortgage market. FRE would benefit and grow if allowed to expand their mortgage-buying activities. The approval would ease growth restrictions and allow its portfolio to grow and have their capital restrictions eased - from an investment standpoint FRE looks attractive for mid-term gain into the low 90s.

Ticker	Last Trade	Direction	Entrance Point	Exit Point
FRE	$62.98		$62.98	$90.00

P/E Ratio:	n/a
Forward P/E Ratio:	11.7
Float Shares2:	129 M - true
Company Guidance:	*
Recommendation3:	*
Support4:	59.75 near term
Resistance5:	130
Under Accumulation6:	yes
Under Distribution7:	no

... DAY TRADER

... August 8, 2007

... 3:06pm ... notice transfer to SFHF portfolio. Clearly oversold, especially with excellent fundamentals and unique product line. HLYS reported strong domestic sales, growing demand in Europe and early deliveries of its fall product line, topped expectations. Analysts polled by Dartline expected profit of 42 cents per share, on sales of $73.3 million. However, it was the guidance for the third quarter that hurt the stock when management anticipates earnings per share of 28 to 30 cents on sales of $55 million to $58 million. Analysts expectations were to high that earnings would be 38 cents per share on sales of $68.4 million. Management's numbers are conservative.

... 2:48pm ... BUY Heely's Inc (HLYS) - last $11.84 . After 45% decline HLYS looks oversold.

August 7, 2007

.. 12:57pm ... COVER #2 on CLWR - last $25.39 Take loss.

... 12:48pm ... COVER # 2 on AHS - last $17.10 Take loss

... 12:37pm ... SHORT #2 on CLWR - last $25.28

... 12:32pm ... BUY #2 on AHS - last $17.22

.... 11:42am ... COVER #3 on IART - last $48.84 Take profit.

... 11:05am ... SHORT #3 in IART - last $49.39.

... 10:35am ... COVER CLWR - last $24.99 Take profit.

... 10:20am ... COVER entire position in IART - last $49.23 Take profit

... 10:12am ... SELL FNM - last $65.87 Take profit

.... 10:07am ... SELL AHS - last $17.81 Take profit.

... 10:01am ... SHORT #2 on IART - last $49.80

... 9:49am ... SHORT Clearwire Corp (CLWR) - last $25.41 Downgrade caused distribution while limited buying interest contracts value.

... 9:39am ... BUY Fannie Mae (FNM ) - last $62.67. Under major accumulation.

... 9:38am ... BUY AMN Healthcare Services (AHS) - last $ 17.02. Oversold.

... 9:34am ... SHORT Integra Lifesciences (IART) - last $49.64. Limited upside after guidance lowered.

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

... August 8, 2007

... 3:30pm ... partial portfolio liquidation - (1) SELL XING - last $9.90; (2) SELL AXPJM.X- last $2.75

... 2:46pm .... special notice - Due to error in transmission this posting was made after the close on 08.07.07 at 5:30 pm, and not all viewers had access of this fact. - Closed out entire position in American Homes (AHM), representing 400,000 shares at average cost of $1.95, representing a loss of $780,000.00.

... 2:28pm ... SELL CQLTL.X Aug '07 $60. strike puts - last bid $11.10. . Originally suggested at $1.85 on 07.24.07. Take profit.

August 7, 2007

... 9:15am ... Closed out before the market closed 07.06.07 .... AMN Healthcasre Services (AHS) - last $21.74 . AHS cut its full-year profit and revenue forecasts, predicting weaker growth in its nurse and allied staffing segment. Not satisfied with guidance and clearly below expectations. AMN said it expects to earn between $1.02 per share and $1.04 per share for the year, with revenue ranging between $1.16 billion and $1.17 billion. Previously, the company forecast a full-year profit of $1.10 to $1.14 per share, on $1.18 billion to $1.2 billion in revenue.

August 6, 2007

... 12:38pm ... SELL put options in Eagle Material (EXP) - EXPTH.X (Aug 07 40 put) - last bid $0.95. Originally suggested at $0.48 on 07.27.07; EXPTI.X (Aug 07 45 put) - last $ bid $4.80. Originally suggested at $2.70. Take profits.

... 9:35am ... SELL ACCO Brands Corp (ABD) - last $22.30 . Originally suggested at $20.95 on 08.03.07. Take profit.

August 3, 2007

... 9:54am ... SELL Stanley Inc. (SXE) - last $21.10. Take profit.

... 9:44am ... notice as to price - CBAK - last $3.50 from $3.22.

... 9:27am ... SELL Littlefuse Inc. (LFUS) - last $36.69. Take profit.

... 9:15am ... SELL China BK Battery Inc. (CBAK) - last $3.22. Disappointing numbers and product mix. Management doesn't have a clue to take an excellent footprint to a higher level. Disappointed by results. Take loss.

___________________

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 THE APRIL '07 to JUNE '07 in the SFHF portfolio ............................$2,540,068.00

REALIZEDGAINSLOSSES FOR JULY 07 to date in the SFHF portfolio ................................................$934,785.00

REALIZEDGAINSLOSSES FOR THE MONTH OF AUGUST 07 to date in the SFHF portfolio .................$185,180.00

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

August 8, 2007, 4:00pm ....................$487,120.00

August 7, 2007, 4:00pm ....................$601,094.06

August 6, 2007, 4:00pm ................$1,013,100.10

August 3, 2007, 4:00pm ................... $867,150.14

August 2, 2007, 4:00pm ................... $512,976.15

August 1, 2007, 4:00pm ....................$442,649.99

July 31, 2007, 4:00pm .......................$234,712.28

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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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