"You know what the news is-- in a minute, you're going to hear the rest of the story"- Paul Harvey

Ok, I've seen enough of the nonsense, it's time to take profits in some of our oil positions.

Effective today, I am selling the OIH: Oil Services HOLDRS in the DG ETF Portfolio.

Our cost basis is $182.33 (purchased on 9-17-07), and I have locked in a sale price of $210.92, a gain of $28.59 or 15.68%. Annualized the gain is 23.55%

We will be replacing the OIH: Oil Services HOLDRS with a trading short. Today we are buying the Ultrashort Oil & Gas Proshares- DUG at a price of $27.85.

In the DG Fidelity Select Sector Fund Portfolio, we are selling;

FSESX- Energy Services
FNARX: Natural Resources
FSDPX: Materials

As of yesterday, the gains in the three funds were 31.92%, 22.09%, and 16.95% respectively. The annualized gains were higher.

Hold the proceeds in cash, and we will re-deploy the assets at a later date.

We will continue to hold the FSENX- Energy Fund to keep an energy position in the portfolio.

In July, the Bush Administration will temporarily halt oil purchases for the Strategic Petroleum Reserves. They like to do things like this before an important election. You know, it's a sheeple (leading the people like sheep) thing

I will have more updates for you in this weekends briefing.