Stock Picks for August 16, 2207

So we are right where we said we would be, high 12s!  Selling around here would lock in your hedge profit.  I would be surprised if the markets go much below 12000.  We are going to push the hedge a bit further.  There is some technical resistance at 12500 area, but it could easily blow past that given the financial mess around sub-prime, housing, bonds, and 50 other things. Opened an average down on ESV stock pick.  We cannot miss picking it up at these levels.  This stock can go up 10% in a day! NYX average down getting closer.  We will consider raising price after one more day. Getting real close in opening some new positions, markets way oversold.  Things should calm down a bit here, but you never know. LEH now 16% below where we sold it for a loss.  The reason we keep bringing this up is to communicate the wisdom of taking your loss when needed.  Re-application of capital flows is core to our method. CFC (Countrywide) continues to be an interesting story to watch. Everyone is saying they will survive, and we agree.  However, it is going to be real bad for them for a long time. In the next few weeks to months we will start the long process of banks and brokers missing earnings and that will weigh on market.  No doubt the bears are here, the question now is how long.  New stock picks coming when appropriate.