Stock Picks for October 17, 2007

Our Google position stock pick filled perfectly early in the market morning.  We should hit 700 soon.  This is one of our long term core positions. Our Toyota averaged down perfectly before recovering a bit.  We are sticking with this one, and it will eventually turn around. Oil sets another record.  We are looking for a pullback on this one soon.  The impacts of high energy costs on the broader market can sometime seem subtle, but it is not at all.  Higher gasoline prices impact consumer spending, trucking which can translate into higher prices for consumers and it goes on and on.  High energy costs can slow the economic growth while at the same time accelerate inflation. Combine high oil with renewed credit worries, and you know.  We have been preaching this for months.  We are watching closely.  50% is in the bond, so we have some room to buy more if we get the chance. One of our favorite positions, Apple, is releasing a new version of the Mac OS...Leopard.  Yet another product to stack on the shelves for Christmas. Looks like the Fed was divided on cutting rates (the amount) after reading the minutes.  This could telegraph an unwillingness to cut rates further at next meeting. Weak Bank results are really going to hit the markets hard.  Combine that with the fact that write-offs and write-downs are not complete because deliquincies are still happening, and we still have an equation for more problems. We are going to reserve the rest of our slots for average downs if we get the chance, which would be a gift.  The only exception will be if any of our open orders fill.  We are going to keep them open for a bit just in case. Remember, wait for our alert on the average downs.  We trigger average downs after a strong trend reversal and many other factors. We have not had to say this in a while, but one of our main slogans for new users is:  In all of history, no matter how far the markets have fallen, they have done one thing every time.  What is that you say?  They have gone back up.  That is why we look at average downs as a gift for our undervalued stock picks is strong good companies.