7/9/2007 3:25:19 PM

Trade recommendations:

We never entered the long trade on SCI and we will continue to delay that entry. Although SCI is very close to our recommended entry price of $12.50, we think it may drop even further and will continue to monitor it for a trade entry.

We are looking at a couple of trade entries today.

The first is for a rally to continue to break upward through resistance. We are looking at long positions that will most benefit from a market surge.

Business: INFOSYS TECHNOLOGIES -ADR, (INFY) provides managed software solutions to clients worldwide through an extensive non-U.S. based (offshore) infrastructure. The company has sixteen state-of-the-art offshore software development facilities located throughout India and one global development

Buy shares of INFY with a limit of $53.00.

We will exercise caution on this entry as if the market begins to roll over as evidenced by the major indexes, then we will delay this entry. Until cancelled with an alert, go ahead and enter the order with your broker.

We are also looking at a trade on EBAY.

Business: EBAY INC, (EBAY) operates an online person-to-person trading community on the Internet, bringing together buyers and sellers in an auction format to trade personal items such as antiques, coins, collectibles, computers, memorabilia, stamps, and toys.

Place an order for EBAY shares as follows:

Buy shares of EBAY with a limit of $32.30.

We won't enter this long trade until EBAY pulls back so we may have to be patient.

Short Trades:

We are also looking at various short trades. The recommended trade will likely be chosen from the following list of candidates. We will issue a further alert as to which candidate and as to what the proper entry level is, etc.

PRKR
SLE
MWA
ELON
DWA
LAVA
MDRX

Open Positions:

We entered the short position in VOLC at $20.50. Share price closed at $20.79 on Friday, so we are behind in this trade by about 1.4%. Let's move the stop down to $21.50.

FDG has rallied to $34.23. This leaves both of our 100% positions at significant profits so we will likely exit one of the positions today if the price reaches $34.42.

Sell all shares on our initial position in FDG at a limit of $34.42 to close that position.

We will move the stop on the remaining position up to $32.30.

We continue to be paid a quarterly dividend to hold FDG, which has now occurred four times since our purchases and will occur again in a week's time. We have collected just under three dollars in dividends so far (less the Canadian governments 15% withholding for non-Canadians) and will shortly add another CAN$.065 to our holdings (this is locked in even if we sell shares at this point.

We closed the positions on BPT and RDY when their stops were hit and will be summarizing those profits in a table later this week.

Summary:

We believe the markets are due to break out (higher) or reverse lower in a larger move. The Dow and S&P-500 are close to putting in triple tops with price currently just below resistance. If the Dow and S&P-500 successfully break through resistance, then the markets will become more bullish again. If, however, these levels can not be overcome, then a more serious sell-off is likely to occur. We intend to take advantage of this situation by entering short trades at resistance with stops just above resistance.

We will also look to enter long NASDAQ trades, as the NASDAQ looks set to move up further. Of course, the problem with this scenario is almost every newsletter writer and market pundit believes this is likely, so this is usually the time when the market will move in the opposite direction. We will monitor the situation and position for either eventuality.

Regards and Good Trading,