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August 17,2007,

... 8:52am ... S&P 500 index futures above 200-day moving average line. Don't get nervous - this is a short cover rally ... Top line remains 1450. ... 7:30am ...The Standard & Poor's 500 Index closed at 1411.27 4.57 -- after being down sharply earlier in the day (1370.60 - 1415.54). A mere technical bounce - do not get confused from the magnitude of the trading range. Forget about determined downside support, instead establish upside resistance. Use 1450 as the probable mid-term barrier. In less than one month the index is down more than ten-percent and much more to come. ... The Philadelphia Federal Reserve Bank confirmed business activity was weaker-than-expected in August, showing no growth, versus 9.2 in July. A reading above zero indicates growth in the region's manufacturing sector. Economists polled by Dartline had forecast a reading of 9.1. ... S&P 500 index component General Motors Corp. (GM) last $30.77, which owns 49% of mortgage originator Residential Capital LLC, had its ratings cut to junk status by Moody's Investors Service, citing "significant" funding volatility in the single-family mortgage market. ...The Commerce Department said housing starts set an annual pace of 1.381 million units in July, lower than Dartline forecasts of 1.395 million units and the upwardly revised 1.470 million rate for June. It was the lowest pace since the January 1997 rate of 1.355 million units. Building permits fell 2.8 percent in July to an annual pace of 1.373 million, the lowest since October 1996, when they reached 1.358 million. Economists polled by Dartline expected July permits at 1.400 million after 1.413 million in June. July's drop in housing starts was the worst in the South, where they fell 11 percent. Starts also fell in the West and in the Northeast, but rose in the Midwest. Compared with a year earlier, July home starts were off 20.9 percent and permits were down 22.6 percent. ... Labor Department data showed that the number of U.S. workers signing up for jobless benefits rose to 322,000 last week, the highest level in two months. Economists polled ahead of the report were expecting the weekly claims level to inch down to a seasonally adjusted 313,000 for the week ended August 11, from 316,000 reported the prior week. The four-week moving average increased to 312,500 from 307,750. ... The pieces, taken in their totality confirms that the economy is cool to signal a decline in business activity that will materially affect consumer spending. ... Yesterday the yen had its biggest increase against the dollar in six months as investors fearing a global credit crisis and exited risky trades financed by borrowing the Japanese currency. The yen reached its highest since November against the euro and soaring against high-yielding currencies of the Australian and New Zealand dollars. Though still voluntary, unwinding carry trades has exasperated international credit problems and reduced underlying assets values, which support the loans, to decline further. In the last two months, the dollar dropped from 124.16 yen in June to a 14-month low to 112.00. Selling in other cross-yen trading units triggered automatic sell order as the Australian and New Zealand dollars fell 4.95 and 4.44 percent, to 90.51 and 78.64 respectively.The Australian dollar has now lost more than 12 percent against the yen in the last six sessions at current prices, while the New Zealand dollar is down more than 14 percent against the yen. Multiple similar events can happen in every industrial country. Global risk aversion and further reduce in the availability of credit would be the result. Indeed, without credit, assets value will substantially decline - since stocks are intangible paper - the contraction is only in the early stages.

August 16, 2007, 7:30am ... The S&P 500 Index closed at 1,406.70 19.84, representing the first time in negative territory this year. Forget about determined downside support, instead establish upside resistance. Use 1450 as the probable mid-term barrier. ... No way can the Fed reduce interest rates and must hold the line at 5.25%. Dartline has continued to stress since October '06 that interest rates cannot be lowered since the U.S. dollar must be defended at all costs. ... The yen continued to rally against the dollar in tandem with the decline in U.S. stocks as investors reduce their desire to hold high risk paper, and unwind their carry trades. In carry trades, investors borrow low-yielding currencies to reinvest in higher yielding assets elsewhere - like mortgage paper, hedge fund paper, real estate paper, global equities paper and any junk paper that temporary yielded more than the yen loans. For the last ten days, the dollar-yen has been 84% percent correlated to the S&P 500 index. No coincidence! The action of the yen reflects carry-trade, voluntary liquidation rather than confidence in Japan's economy. However, if the yen advances 5% higher against the U.S. dollar, the orderly carry trade liquidation will become involuntary and set off a global selling frenzy to unwind the billions of dollars in open investments. The trigger would be the Fed taking the irresponsible act of reducing the benchmark interest rate. Dartline believe that the Fed understands the ramifications, while the morons on Wall Street cry for reduction to gain a very short term remedy. The markets will not calm down and what has happened so far is only the tip of the iceberg that sank the Global Titanic. The modern financial world runs on credit. Indeed, if fear rises to a level where fewer are willing to lend the situation can get a lot worse before it starts improving. Since the consumer represents 60% of the U.S. economy and the torrent of foreclosures will take 24 to 36 months to work through the system, a credit deflation combined with analysts trimming earnings estimates spells - catastrophe for equities. Wow! And all those yen participating in the carry trade tied up in U.S. and global "crazy" paper and cannot be readily exchange or liquidate - and you have what? ... Defend the U.S. dollar or else!....... 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 86.5 in August from July's 90. ... Since the first of August, Dartline suggested to reduce stock positions, take profits, eliminate laggards and conserve cash. Our technicals have turned negative to a level never before experienced. The last time global credit became an issue was the spike in oil prices in mid '70s as the stock market fell to level only witnessed in the 1929-1931 period. Don't get talked out of reducing all long term commitments and ride the horse in the direction it's going.

.. . 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 17, 2007, 4:00pm ... Day Trader for the day shows a gain of $30,786.00. ... Adjustment to the Stocksmirf Hedge Fund ("SFHF") portfolio shows: (1) sold MPEL for a gain of $64,500.00; (2) sold call options FREIL.X for a gain of $68,000.00; (3) sold call options STRIG.X for a gain of $60,000.00; (4) sold FRE for a gain of $3,800.00; (5) sold VVUS for a loss of $62,300.00. Net realized change for the day in Stocksmirf Fantasy Hedge Fund portfolio is a gain of $164,786.00, excluding unrealized gains or losses.

August 16, 2007, 4:00pm ... Day Trader for the day shows gains of $521,350.00. ... Adjustments to the Stocksmirf Fantasy Hedge Fund ("SFHF") portfolio shows: (1) covered short on ETEC for a gain of $159,500.00; (2) covered short on PMI for a gain of $106,000.00; (3) covered short on ADSK for a gain of $27,600.00; (5) covered short on HCR for a gain of $50,100.00; (6) sold OLED for a gain of $600.00; (7) covered short on DAKT for a gain of $10,500.00. Net realized change for the day in Stocksmirf Fantasy Hedge Fund portfolio is a gain of $875,650.00. For the month of August '07 to date SFHF shows a gain of $1,584,060.00. That's more like it!

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.

... 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.

... INVESTMENT SUGGESTIONS greater than one day - subject to volatility

... August 17, 2007

... 2:55pm ... BUY Synopsys Inc (SNPS) - last $23.90. SNP offers electronic design automation software for semiconductor design companies in the United States and internationally. Deal as the primary electronic design automation supplier to Intel Corp. established mid-term stability and should improve guidance. At 14 times forward earnings, SNPS is a clear value play for near and mid-term. No EXIT POINT determined.

... 2:36pm ... SHORT American Woodmark Corporation (AMWD) - last $28.04 AMED manufactures and markets kitchen cabinets and vanities for the remodeling and new home construction markets in the United States. AMWD continues to experience operating margin issues as their markets remain soft. Fundamentals are marginal and further weaknesses do not justify stock price. With earnings due a few days away, nervousness with the earnings and projection numbers will unsettle the stock. Support at near term $22.50

... 1:11pm .... SHORT Adams Respiratory Therapeutics (ARXT) - last $41.26. ARXT is a specialty pharmaceutical company, focusing on over-the-counter and prescription pharmaceuticals marketing for the treatment of respiratory disorders. Fundamentals adequate to justify price, except sponsorship appears questionable. Support at $37.50.

... 12:22pm ... BUY Oplink Communications Inc (OPLK) - last $14.64. OPLK offers design, integration, and optical manufacturing solutions (OMS) for optical networking components and subsystems worldwide. Earnings due Monday to be positive. At 2.4 percent over book value leaves OPLK has adequate asset base to make the Optical Communications Products acquisition financially rewarding, which it agreed to buy a majority stake in Optical Communication Products Inc. from Furukawa Electric Co. for $99 million. Guidance forward can support a higher valuation. EXIT POINT in near term $16.75.

... 10:44am ... notice Change price on APVUE.X to $7.35 from $5.35.

.... 10:26am ... BUY put options in Apple Inc. (APPL) - APVUE.X - Sept '07 strike price $125 - last bid $5.35 . Underlying stock under a wave of distribution.

August 16, 2007

.. 3:29pm ... BUY call options in Suntech Power Holdings (STP) - STPIG.X - $35 strike Sept '07 - last bid $1.70. STP offers design, development, manufacture, and marketing of photovoltaic (PV) cells and modules. It also provides PV system integration services in China. White House veto of a Democratic energy bill that would favor alternative energy not likely. special note: This idea is high risk. As in all situations, consult with your investment adviser or other financial professional before undertaking this suggestion. Closed out position.

... 12::46pm .. COVER entire position on MLAN - last $52.22. Unable to borrow underlying shares and volume restrictions are not conducive to maintain any appropriate amount. Closed out position.

... 12:09pm .... SHORT #2 on Midland Company (MLAN) - last $53.00. Add short position. See Best Idea 08.15.07. Closed out position.

... 11:14am ... COVER EL - last $39.81. EL has more strength than makes sense in this market. Take profit. Closed out position.

.... 10:32am .... BUY #2 on MPEL - last $10.30 . See 08.14.07 under this section. Closed out position.

... 9:31am ... notice Change SHORT price on EL to $40.88 from $39.50.

.... 9:24am ... SHORT The Estee Lauder Companies (EL) - last pre-market $39.50. EL manufactures and sells skin care, makeup, fragrance, and hair care products primarily under stee Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, American Beauty, and Good Skin brand names worldwide. The company expects fiscal first quarter profit well below Wall Street's expectations, estimated earnings per share from continuing operations would be between 5 cents per share and 11 cents per share in the first quarter. Dartline expected earnings per share of 29 cents. Near term support at $29.50. Closed out position.

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. Closed out position

... 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

Ticker	Last Trade	Direction	Entrance Point	Exit Point
SNPS	$23.90		$23.90	*

P/E Ratio:	42.7
Forward P/E Ratio:	14.9
Float Shares2:	97.8M true
Company Guidance:	*
Recommendation3:	*
Support4:	23.60 near term
Resistance5:	28.67
Under Accumulation6:	moderate
Under Distribution7:	limited

... DAY TRADER

... August 17, 2007

.... 3:31pm ... COVER #3 on CFC - last $21.09. Take profit.

... 3:19pm ... SHORT #3 on CFC - last $21.35.

... 3:05pm ... COVER #2 on CFC - last $21.05. Take loss.

.... 2:40pm .... notice Transfer AAPL to SFHF portfolio at execution price and time.

... 1:01pm ... SHORT #2 on CFC - last $20.95

... 12:44pm ... COVER BID - last $36.99 . Less downside momentum. Take profit.

... 12:32pm ... COVER CFC - last $20.82 Take profit

... 11:24am ... SHORT Sothbys (BID) - last $37.97 Near support with limited buying interest to contain price.

... 11:05am ... SHORT Countrywide Finl (CFC) - last $21.36 Questionable Moving Average Convergence/Divergence (macd)

.... 10:18am ... SHORT Apple Inc. (AAPL) - last $121.14 Weak Moving Average Convergence/Divergence (macd)

August 16, 2007

... 2:37pm ... COVER #6 on CFC - last $18.42 Take profit.

... 2:20pm ... SHORT #6 on CFC - last $18.84 Weak Moving Average Convergence/Divergence (macd)

... 2:18pm .. SELL CFC - last $19.24 Take profit

... 1:54pm ... COVER #5 on CFC - last $16.80 and BUY #4 on CFC at the market last $16.80

... 1:33pm ... SELL #1 on ETFC - last $11.20 Take profit.

... 1:31pm ... SHORT #5 on CFC - last $16.47

.... 1:28pm ... SELL #3 on CFC - last $16.90 Take profit

.... 1:18pm ... BUY #1 on ETFC - last $10.77 Strong Moving Average Convergence/Divergence (macd)

... 1:11pm ... BUY #3 on CFC - last $16.31 .Improving Moving Average Convergence/Divergence (macd)

... 1:03pm ... COVER #4 on CFC - last $15.44. Take profit.

... 12:55pm ... notice Change COVER #4 on CFC to SHORT #4 on CFC.

... 12:54pm ... COVER #4 on CFC- last $16.00

... 12:42pm ... COVER #3 on CFC - last $16.01 Take profit

... 12:38pm ... SELL #2 on CFC - last $16.65 and SHORT at market - last $16.62

.... 12:30pm ... BUY #2 on CFC- last $16.83 Oversold for near term.

... 12:21pm ... COVER #2 on ETFC - last $10.66 Take profit

... ... 12:16pm ... COVER #2 on CFC - last $ 16.59 Take profit.

.... 12:01pm ... SHORT #2 on ETFC - last $12.01

.... 11:45am ... SHORT #2 on EL - last $40.20 . See Best Idea for today.

... 11;29am .... SELL ICE - last $128.80. Failure to attract new buying interest. Take profit.

.... 1:23am .. SHORT #2 on CFC - last $18.10

... 10:40am ... COVER CFC - last $17.99 Take profit

... 10:37am ... COVER SHORT #2 on ETFC- last $11.92 Take profit.

.... 10:37am ... BUY Intercontinental Exchange (ICE) - last $123.21. Trade to $135 on oversold condition.

... 10:14am ... SHORT E*Trade Finl (ETFC) - last $12.48 . See Best Idea for 08.14.07.

... 9:57am ... SHORT CFC - last $18.41

... 9:55am ... SELL CFC - last $18.60 Take profit

... 9:43am ... BUY Countrywide Financial (CFC) - last $17.77

... From the SFHF portfolio to closeout unsettled positions

... August 17, 2007

.... 4:15pm ... notice Change price on FREIL.X to $ 6.90 from $7.30.

.... 10:53am ... SELL VVUS - last $5.12 . Soft in weak market.Take loss.

... 10:06am ... SELL call options FREIL.X - last bid $7.30 Suggested at $5.20 on 08.07.07. Take profit.

... 9:55am ... SELL call options STPIG.X - last bid $2.90. Suggested at $1.70 on 08.16.07 . Take profit

.... 9:54am ... SELL Freddie Mac (FRE) - last $63.17 . Take profits

.... 9:42am ... SELL entire position on MELCP PBL Enter (MPEL) - last $11.42. Not acting within acceptable limited - closeout position. Take profit.

August 16, 2007

... 2:07pm .... Partial SFHF portfolio liquidation. ... (1) cover short on HCR - last $59.63. Take profit; (2) sell OLED - last $11.65. Take profit. (3) cover short on DAKT - last $24.40. Take profit.

.... 1:05pm ... Cover ADSK - last $41.30 Take profit.

... 11:56pm ... notice - MLAN - executed.

... 11:55am ... COVER MLAN - last $53.29 .

... 11:35am ... COVER PMI Group Inc. (PMI) - last $26.40. Originally suggested at $29.05 on 08.10.07. Take profit.

.... 9.58am ... COVER E*Trade Financial (ETFC) - last $11.83 .Originally suggested as short sale at $15.02 on 08.14.07. 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 ..............$1,748,846.00

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

August 17, 2007, 4:00pm ..................$26,799.98

August 16, 2007, 4:00pm .................$116,399.78

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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2 Float - Available stock position in the hands of the general public of the total outstanding.
3 Institutional recommendations during the last 30 days.
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