Stock Picks for October 12, 2007

We opened a new stock pick in GOOG.  I think this one is going to 700 quickly.  We will try and get a quick gain on this one, unless it really takes off and then we will hold a bit longer.  Expect some volatility and more stock picks coming. So markets were up nicely before they pulled back a lot.  Especially the NASDAQ at -1.4%. What negative news was leading the way?  Retail chilling, record foreclosure with more coming, etc.  Our same theme we have been saying since July. Trade deficit and trade gap dropped again...yeh, who cares so is the dollar (dropping).  When those happen with an appreciating dollar and then we will be impressed. Now budget deficit declining is very positive.  GDP growth translates to more government revenues, so a great indicator. There is definitely prevailing opinions from economists, CEOs, etc that the economy is slowing.  The more analyst reports we buy that support our views is slowly increasing.  Our theory is that our cautious approach will pay off for us over the next 12 months, especially for those following the model portfolio to the tee. The markets could be volatile tomorrow, so tread carefully.  Next week is a HUGE week for earnings and will give us a ton of data on where companies and by correlation the economy;  is heading.  If we see any opportunities develop we will issue new buys.  Especially if the markets can put together a few big down days to get us to 13600 or 13700.