Stock Picks for August 1, 2007

So, just what we said would happen, happened.  More downside.  We do not think it is over. A good hedging strategy is to buy QID.  This is an ultrashort portfolio that is going to outperform in a down market and especially if this is an emerging bear market.  Buy it at open tomorrow if you want a hedge.  There are two strategies.  Ride it out, or hedge.  Up to you.  Long term people should ride it out.  More short term people will want to buy the hedge. We put together some data for you to consider in 6,7, and 8: In 6, this illustration is to show the recovery after a 22% crash. In 7 & 8 are the news during similar circumstances.  This will allow you to see how things could potentially play out. http://www.thelimitorder.com/djia-1987.JPG http://www.thelimitorder.com/Atlanta-1989.htm http://www.thelimitorder.com/1987.htm