"Prices for energy stocks, including the drillers, are bombed-out and should be aggressively accumulated now," says resource expert Eric Roseman.

Here, the editor of The Commodity Trend Alert explains, "The absolute worst thing we can do is sell now." Here's his outlook on energy and drilling and a trio of buys.

"The pain felt by commodity bulls should abate shortly; this mind-blowing expansion of credit will ultimately fuel inflation to much higher levels. Eventually, long-term interest rates will rise sharply in the United States as the government grows hungrier to finance its out-of-control spending habits.

"What we're seeing now is a market that has gone from being obsessed with inflation just two months ago to one now worried about rapid deflation or an environment of declining prices. Combined with bad economic news overseas, the U.S. dollar has seen a violent reversal exacerbating the plunge in raw materials. It's been a brutal sell-off and the worst decline I've seen since mid-2006.

• The Chicago Board of Trade (NYSE: BOT) and Chicago Mercantile Exchange Holdings Inc (NYSE: CME) to hold a special shareholder meeting in Chicago about merging at 4pm.
• Take-Two Interactive Software (NASDAQ: TTWO) to hold a business update at 4:30pm.
• Alcoa Inc (NYSE: AA) to report Q2 earnings; conference call at 5pm.

• Electronic Entertainment Expo, or E3, to be held from July 10-July 13 in Santa Monica, California.
• The Home Depot Inc (NYSE: HD) to release a 2007 Sales Update at 9am.
• Sealy Corporation (NYSE: ZZ) to report Q2 earnings; conference call at 5pm.

Last December, over 100 stocks were featured in our Top Picks for 2007 report. Now, at mid-year, we turn to the 20 advisors whose picks showed the strongest gains to get an update on their previous picks, as well as a new favorite stock for the second half of the year.

Jon Markman, editor of Strategic Advantage, chose banking software company FundTech Ltd. (NASDAQ: FNDT), which rose 41% as of June 1, 2007. The advisor has just sold the stock from his model portfolio.

For his new favorite idea for the balance of 2007, the advisor looks to Hercules Offshore Inc. (NASDAQ: HERO). He explains, "Energy companies' shares might seem high to you now, but you ain't seen nothin' yet. When investors collectively decide that the new 'band' for oil prices is $50 to $65 rather than $35 to $50, then virtually all energy stocks are in for a major upward move.

"In this scenario, every subsector of the energy industry will move higher: Oil and gas drillers, services providers, explorers, refiners, pipeline owners, and the major integrators. We are just in the third inning of the game now, and it should continue to surprise people.

"All this is good news for the energy companies, but not such great news for the average consumer. We know how gasoline prices are breaking budgets.

"So in order to put some of the cash you're shelling out at the pump each week back into your pockets, I've been suggesting a couple of other energy companies that are set to profit from higher oil and natural gas prices as well as drilling rates.