Wrapping Up 2007

Plus: Setting Up 2008

“Nothing Changes on New Year’s Day”

-Bono, lead singer of U2

Dear Bottarelli Research Member,

I often feel that News Year’s is the most over-rated of all the holidays, especially when it comes to your investments. After all, I’m sure you’ll get bombarded with a lot of wild predictions for 2008 over the next few days, but before you buy into any of these predictions, let me offer you a prediction that you won’t typically hear in any media source: Nothing significant will change about our tactical trading strategy in 2008.

In other words, we’ll continue to play the strongest companies exhibiting the greatest amounts of trading momentum — and topping that list are the dry bulk shippers. I’m still very bullish in the dry bulk shipping sector, so we’ll continue to play stocks like DryShips (DRYS — NASDAQ) and Excel Maritime Carriers (EXM – NYSE).

And even though the calendar will soon move from 2007 to 2008, I see no signs that the agricultural and fertilizer sectors will slow down anytime soon. Therefore, we’ll continue to place heavy trading emphasis on companies like Potash of Saskatchewan (POT – NYSE), Mosaic (MOS – NYSE), Agrium (AGU – NYSE), Bunge (BG – NYSE), and Deere (DE – NYSE). In fact, Monsanto (MON – NYSE) is scheduled to report earnings on Thursday, and since they’ve already pre-announced that their numbers could be double last year’s numbers, you know this entire sector will continue to rocket higher in 2008. Continue holding your BG January 120 Calls (BG AD) into 2008.

I also continue to love the entire publicly-traded exchange sector, which induces stocks like InterContinental Exchange (ICE – NYSE), CME Group (CME – NYSE), and NYSE Euronext (NYX – NYSE).

Also, foreign oil money will lead directly to sustainable bullishness in the engineering sector in 2008, and this paints a strong argument for names like Fluor Corporation (FLR – NYSE), Foster Wheeler (FWLT – NASDAQ), McDermott International (MDR – NYSE) and Jacobs Engineering Group (JEC – NYSE).

I’m also very bullish on International oil and telecom names like Petroleo Brasileiro (PBR – NYSE), Millicom International Cellular SA (MICC – NASDAQ), and Telefonica SA (TEF – NYSE).And of course, we’ll continue to profit by playing the tremendous volatility in the Chinese markets using the iShares FTSE/Xinhua China 25 Index (FXI – NYSE).

And speaking of volatility, solar stocks will continue to make strong intra-day price swings in 2008, and that means we’ll continue to have success playing names like Suntech Power Holdings (STP – NYSE), MEMC Electronic Materials (WFR – NYSE) and JA Solar Holdings (JASO – NASDAQ).

We could also see an upside bias come into the brokerage stocks like Bear Stearns Companies (BSC – NYSE), Lehman Brothers Holdings (LEH – NYSE), and Goldman Sachs Group (GS – NYSE), so we’ll continue to play the movements of this group as well. I suppose I could throw Mastercard Incorporated (MA – NYSE) into this sector group as well.

I’ve also seen numerous predictions for $1,000 gold prices in 2008, and this could be an upside spark for my favorite metals play Freeport-McMoRan Copper & Gold (FCX – NYSE). And also on the trading radar for 2008 is the Oil Services HOLDRs (OIH – AMEX), with specific emphasis being placed on the top two names in this group, Transocean (RIG – NYSE) and Diamond Offshore Drilling (DO – NYSE).

The 2008 Summer Olympics in China will also put Macau casino stocks in play, and that leads directly to great trading opportunities in Wynn Resorts (WYNN – NASDAQ) and Las Vegas Sands (LVS – NYSE).

You also have a grouping of random stocks we’ve successfully traded in 2007 (and will most likely trade successfully in 2008) like Cummins (CMI – NYSE), Chipotle Mexican Grill (CMG – NYSE), United States Steel (X – NYSE), Joy Global (JOYG – NASDAQ), Union Pacific (UNP – NYSE), GameStop (GME – NYSE), Lamar Advertising (LAMR – NASDAQ), and many others.

Oh, and we certainly won’t forget about the technology names like Apple (AAPL – NASDAQ) Research In Motion (RIMM – NASDAQ), and Garmin (GRMN – NASDAQ).

Looking at all the fantastic trading opportunities above, I expect us all to have great success in the New Year. So let me sincerely thank you for a remarkable 2007, and you can look forward to an even better 2008!

Have a fun and safe New Year, and we’ll talk again in 2008.

And as always…

Lock and load!

Sincerely,