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August 15, 2007, 2:45pm

... Keep an eye on 1,289.82, last visited on August 23, 2006. ... 7:30am ... The S&P 500 index closed at 1,426.54 26.38. On August 13, 2007, Dartline warned of a "bull trap," take profits, limit losses and eliminate laggards. "Trading the market on a day to day basis appears the only conclusion, since anything you buy today will be worth less in 90 days." Interim support should be found at 1412, a level last hold on March 22, 2007. Yesterday's sharp pull back was from investors worrying about fundamental economic problems and ongoing fallout from credit market problems. Report from Wal-Mart Stores Inc. that profit will fall below expectations this year as consumers rein in spending set the stage for the stock market to trip. The Consumer Discretionary (-2.7%) turned in an even worse performance, as it paced the way among the 10 sectors losing ground, suggesting the consumer is pulling back on spending took an added toll on sentiment. ... Rising energy and food costs remain a threat to the inflation outlook as the Fed reiterates that inflation remains its "predominant" concern. The Labor Department reported that core PPI in July rose just 0.1% and followed gains of 0.2% in May and 0.3% in June. Today's CPI report will prove a better inflation read on Fed policy direction. Excluding food and energy prices, the core producer price index increased as expected. For now manufactures are absorbing the increases, limiting the pass-through to the consumer. Producer prices are up 4% in the past year, while core prices are up 2.3%, the biggest gain in nearly two years. Crude goods prices rose 1.2% in July, while prices for intermediate goods needing further processing rose 0.6%. The core intermediate goods PPI rose 0.2% in July and has gained just 2.4% in the past year, the smallest rise since January 2004. However, the PPI is not the Fed's focus - the real issue is what consumer prices do. The PPI measures prices in the production pipeline, not at the retail level. Watch day's consumer price index, which is expected to show a modest 0.1% increase for overall inflation and a 0.2% increase for the core rate excluding food and energy prices. The Fed monitors a different but related inflation measure produced by the Commerce Department, known as the personal consumption expenditure price index, which will be released at the end of the month. The increase in core PCE price index over the past year has been on target to the Fed's unofficial comfort zone of 1% to 2%, but Fed officials continued to say at last week's policy meeting that the risks of higher inflation outweighed the risks of slow growth. Upside risks to inflation is the wrong focus since growing turmoil in credit markets has challenged the economy with recession. The hidden agenda to the emphasis on inflation is to keep the U. S. dollar from become toilet paper.

August 14, 2007, 7:30am ... The Standard & Poor's 500 index 0.72 to 1,452.92. Set near term trading parameters to the 1412 - 1475 range. Use all opportunities to take profits, reduce exposure to lagging stocks and only commit new funds to both sides of the market that create extremely oversold or overbought situations. ... An early morning attempt to jump start the market failed yesterday as Goldman Sachs purportedly invested $2.0 billion of its own money in the struggling GEO quant fund, which had loss 70% of its value using quantitative strategies, a fancy name for computer driven trading that under the best conditions never works. The self serving charade had little staying power as investors remain nervous with allegedly "first-line" professionals managing stock market values. Indeed, a great deal of uncertainty in the market over the extent of problems in the subprime mortgage sector will not go away easily. Look past the Fed's liquidity injections and to the housing market problems that underlie investors' fears about the availability of credit. The fallout from an overheated housing market and overextended consumers are beginning to emerge. Remain patient and don't buying into a bull trap. A market correction of 15%-25% in the S&P 500 index appears to be the probable answer. .... from August 13, 2007 .. On Wednesday, the closely watched core CPI, which excludes volatile food and energy prices, is expected to rise 0.2 percent in July, matching June's gain. . At issue is the credit crunch and the public's inability to draw equity from their homes and spend it on junk equals consumer confidence ruled by fear. ... With the current focus on the housing sector, July housing starts on Thursday are likely to come under close scrutiny. The Dartline poll of economists showed that July housing starts are expected to decline to an annual rate of 1.561 million units from 1.467 million in June. Building permits for July also are likely to decline to an annual pace of 1.400 million units from 1.413 million the previous month. Thursday's economic numbers will include the weekly jobless claims and the Federal Reserve Bank of Philadelphia's index for August ... .Consumer confidence numbers will also be closely watched, with the Reuters/University of Michigan Consumer Surveys' preliminary August reading on the consumer sentiment index due on Friday. Economists surveyed by Dartline expect the consumer sentiment index to slip to 87.0 in August from July's 90.

.. . 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 15, 2007, 4:00pm ... Day Trader for the day shows net gain of $173,750.00. Adjustment to the Stocksmirf Fantasy Hedge Fund ("SFHF") portfolio shows: (1) covered short on UBS for a gain of $63.000.00; (2) sold JRJC for a gain of $74,000.00; (3) covered short on CRM for a gain of $22,000.00; (4) sold MKH.X for a loss of $65,000.00; (5) sold MKV.X for a loss of $14,500.00; (6) sold MKL.X for a loss of $11,000.00; (7) covered short on TMA for a loss of $33,500.00; (8) sold AMAT for a loss of $7,300.00. Net realized change for the day in the Stocksmirf Fantasy Hedge Fund portfolio is a gain of $201,450.00, and for the month a gain of $708,410.00, excluding unrealized gains or losses.

August 14, 2007, 4:00pm ... Day Trader for the day shows a gain of $193,440.00. ... Adjustment to the Stocksmirf Hedge Fund ("SFHF") portfolio shows: (1) sold GIGM for a gain of $10,400.00; (2) covered short on TMA for a gain of $430,000.00; (3) covered short on AMZN for a gain of $8,000.00; (4) covered short on BOOM for a gain of $26,500.00; (5) covered short on ANST for a loss of $12,500.00; (6) covered short on FOSL for a loss of $23,300.00; (7) covered short on CTRP for a loss of $58,800.00; (8) sold call options in RSHIF.X for a loss of $170,000.00. Net realized change for the day in Stocksmirf Fantasy Hedge Fund portfolio is a gain of $403,740.00, excluding unrealized gains or losses.

August 13, 2007, 4:00pm ... Day Trader for the day shows gains of $218,920.00, which includes the Best Idea trades in TMA, originally suggested as near term commitment and day traded based on abnormal volatility . ... Adjustments to the Stocksmirf Fantasy Hedge Fund ("SFHF") portfolio shows: (1) covered short on KNOT for a gain of $104,000.00; (2) covered short on HB for a gain of $40,700.00; (3) covered short on AMSC for a gain of $83,000.00; (4) sold put options in HBUM.X for a gain of $85,000.00; (5) sold VCLK for a gain of $40,350.00; (6) sold WRSLA for a loss of $90,000.00. Net realized change for the day in Stocksmirf Fantasy Hedge Fund portfolio is a gain of $522,320.00. For the month of August '07 to date SFHF shows a gain of $103,220.00.

... 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 15, 2007

... 3:19pm ... COVER SHORT on CRM - last $42.58 Take profits based on rapid action.Closed out position

... 1:39pm ... SHORT Salesforce.com Inc (CRM) - last $44.78. CRM offers on-demand customer relationship management (CRM) services to businesses and industries worldwide. Contracting global growth will affect earnings going forward. Fundamentals are sound, but technicals continue to suggest systematic distribution continues. CRM should report after close and may cause stockholders to sell stock off. Near term support at $40.15.

.... 12:45pm ... BUY MELCO PBL Entertainment (MPEL) - last $11.25 MPEL , a developer and owner of casinos and resorts in Macau has its Crown Macau Hotel Casino is fully operational. With visa restrictions relaxed for visitors looking to travel to the Asian gambling mecca of Macau, MPEL will substantial benefit, which surpassed Las Vegas as the world's largest gambling market. It is the only area of China where gambling is legal The policy was enacted for residents of the Guangdong province of China, a southern region that is close. All the stars are lining up to make MPEL an excellent mid-and long term play.

... 11:47am ... SHORT Autodesk Inc (ADSK) - last $44.06 . ADSK offers design software and support services. . Earnings due tomorrow with limited potential for upside surprise. At technical resistance and decline into $39 range likely.

.... 9:12am ... SHORT Genworth Financial Inc (GNW) - last $27.86. GNW offers insurance and investment-related products and services in the United States and internationally. It operates through three segments: Protection, Retirement Income and Investments, and Mortgage Insurance. The troubled Mortgage Insurance segment offers mortgage insurance products in the United States, Canada, Australia, New Zealand, Mexico, Japan, and Europe, customers include originators of residential mortgage loans, such as mortgage banks, savings institutions, commercial banks, mortgage brokers, credit unions, and other lenders. Larger writeoffs will reduce margins and create liquidity problems. Management will attempt to address problem with investors' conference, but does not change fundamentals. Support at $15.00

August 14, 2007

.... 5:11pm ... SELL Applied Materials (AMAT) - after market bid $ 20.65. Take loss based on disappearing numbers. AMAT expects orders and revenue to decline in the current quarter from the just-reported period as a recovery in its flat-panel display business has yet to take a firm hold, and expects a fiscal fourth-quarter per-share profit of 26 cents to 29 cents, and revenue to decline 5 percent to 10 percent from the $2.56 billion it had in the third quarter. Closed out position

... 3:51pm ... SHORT E*TRADE Financial Corporation (ETFC) - last $15.02 ETFC offers financial solutions to retail and institutional customers worldwide. Its exposure in mortgage, home equity, and margin and credit card products; real estate loans; and various consumer loans, including recreational vehicle, marine, commercial, automobile, and credit card loans may place at risk $27 billions in losses. Support $7.50.

... 1:35pm ... SELL KVHI - last $10.12 . Not satisfied with volume and the general market. Take profit. Closed out position

... 11:52am ... BUY KVH Industries Inc. (KVHI) - last $10.06 . KVHI manufactures, and markets mobile communications products for the land and marine markets, and navigation, guidance, and stabilization products for the defense and commercial markets. Fundamentals improve and the company begins to gain traction to improve margins and operating profile. Management is excellent and business plan sufficient to enhance stock value. Earnings due after the close should be in-line, while guidance should increase. Selling at 12 times forward earnings and true float of 9.6 million shares, KVHI is at a price level to accelerate. EXIT POINT in near term is $14.75. Closed out position

....9:35am ... BUY China Financial Online (JRJC) - last $9.92 . JRJC sells online financial services to analyze financial and listed company information in the People's Republic of China. Buy on improving fundamentals. EXIT POINT $14.50. Closed out position

Ticker	Last Trade	Direction	Entrance Point	Exit Point
GNW	$27.86		$27.86	$15.00

P/E Ratio:	*
Forward P/E Ratio:	*
Float Shares2:	*
Company Guidance:	*
Recommendation3:	*
Support4:	23.50 near term
Resistance5:	15.00
Under Accumulation6:	no
Under Distribution7:	yes

... DAY TRADER

... August 15, 2007

... 3:42pm .... COVER open position in TMA - last $10.18

... 3:07pm ... SHORT #5 on TMA - last $10.78

.. 2:47pm ... SHORT #4 on TMA - last $10.74 On larger trade sizes and contracting macd.

.... 2:47pm ... notice Transfer MLAN to SFHF portfolio at execution price and time.

... 2:42pm ... COVER entire short position in TMA - last $10.80 Take profit.

... 1:43pm ... SHORT #3 on TMA - last $11.70 .

... 11:24am ... SHORT #2 in TMA - last $11.18

....10:51am ... COVER SHORT and entire open position in SFHF on TMA - last $10.83

... 10:23am ... SHORT TMA - last $11.95 . On run up

... 9:52am ... SHORT #2 on MLAN - last $51.31

... 9:35am ... SHORT Midland Company (MLAN) - last $50.40. At near term resistance with limited accumulation.

August 14, 2007

... 3:14pm ... notice Transfer AMAT to the SFHF portfolio. Closed out position after the close - see Best Idea.

... 3:07pm ... notice Transfer TMA to the SFHF portfolio.

... 2:30pm ... SELL FOSL - last $29.55 Take profit

... 2:15pm ... BUY FOSL - last $29.32. Improving macd.

... 2:14pm ... SHORT #4 on TMA - last $9.51

... 2:13pm ... SELL TMA - last $9.55. Take loss.

... 2:03pm ... BUY TMA - last $9.75 . On valuation. Oversold.

... 1:55pm ... COVER entire position in TMA - last $9.68 Take profit.

... 1:07pm ... COVER #3 on FOSL - last $30.32 Take profit.

... 12:57pm ... COVER VRSN - last $29.94 Take profit.

... 12:36pm ... SHORT Verisign Inc. (VRSN) - last $30.75. Finding resistance after run up.

... 12:07pm ... SHORT #3 on TMA - last $10.80

... 11:32am ... SHORT #3 on FOSL - last $30.95 .

... 11:24am ... SHORT #2 on TMA - last $10.15 . Under pressure with limited buying interest.

... 11:24am ... BUY Applied Materials (AMAT) - last $21.38 Earnings play and valuation to $23.50.

... 11:20am ... COVER #2 on FOSL - last $31.28. Take profit

... 11:14am ... COVER TMA - last $10.22 . Take profit.

... 10:16am ... SHORT Thornburg Mtg Inc (TMA) . - last $11.76. See Message Board

... 10:08am ... SHORT #2 on FOSL - last $31.94. .

... 9:44am ... COVER FOSL - last $31.82. Take profit.

... 9:32am ... SHORT Fossil Inc. (FOSL) - last $32.65 . Overbought.

... From the SFHF portfolio to closeout unsettled positions

... August 15, 2007

... 3:42pm ... COVER SHORT Thornburg Mtg Inc (TMA) - last $ 10.18

.... 2:15pm ... SELL call options in Macy's - (1) MKH.X - last $0.65; (2) MKV.X - last $0.50; (3) MKI.X - last $0.45. Take losses.

... 11:08am ... SELL China Finance Online (JRJC) - last $11.40 Originally suggested at $9.92 on 08.14.07. Take profit.

... 11:01am ... COVER UBS AG (UBS) - last $51.60. Originally suggested at $54.75 on 08.13.07. Take profit.

August 14, 2007

... 3:04pm ... SELL put option in RSHIF.X - last bid $0.15. Take loss.

.... 1:29pm ... COVER Fossil Inc. (FOSL) - last $29.70 Take loss

.... 11:04am ... partial portfolio liquidation at the market ... (1) COVER Amazon.com (AMZN) - last $73.00. Take profits ; (2) COVER Dynamics Materials (BOOM) - last $41.06. Take profit; (3) SELL Ansoft Corp (ANST) - last $26.63. Take loss.

... 9:49 am ... COVER Thornburg Mtg Inc. (TMA) - last $10.88 . Originally suggested at $15.18 on 08.13.07. Take profit.

... 9:42am ... SELL GIGAMEDIA Ltd (GIGM) - last $11.89 . Take profit

___________________

Net liquidation value of Stocksmirf Fantasy Hedge Fund (SFHF) portfolio for the period ending 07.31.07 ............. 11,610,764.00

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 .................$708,410.00

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

August 15, 2007, 4:00pm ................... $53,800.01

August 14, 2007, 4:00pm ................. . $43,349.96

August 13, 2007, 4:00pm ................ $405,204.10

August 10, 2007, 4:00pm ................. $181,300.00

August 9, 2007, 4:00pm ................... $412,871.09

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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