The Cow Report – November 13, 2010

“There are bulls, there are bears and then there are cows.

Cows use Covered Calls to generate consistent monthly income from a stock
investment to meet living expenses or to compound the growth of a portfolio.

By definition bulls and bears are wrong half the time, whereas a cow
consistently produces returns, regardless of market direction."
Table of contents

Client of the week ……………………… 3

Joseph Hooper’s weekly editorial ……………………… 4

Want Proof??? ……………………… 34

Update of this week’s activities ……………………… 38

How to get educated ……………………… 39

Upcoming Seminars ……………………… 41

Special offers ……………………… 42

Tune into our weekly radio show ……………………… 43

Covered Call Toolbox ……………………… 44

***CLIENT EMAIL SECTION*** ……………………… 45

-2-
What we do

Let’s get right to the point. There is a better way to invest your money.

For over 7 years we have been teaching investors how to make a cash return
of 3 – 6% per month from their stock investments, regardless of market
direction.

We achieve these remarkable returns through a proprietary application of the

Covered Call technique, which has been developed and practiced by us for
over 25 years.

Our clients use this technique in both retirement and non-retirement accounts.
The large monthly returns can be reinvested to dramatically compound the
growth of a portfolio or withdrawn on a monthly basis to provide cash income
in retirement.

Does 3%– 6% per month, regardless of market direction, sound too good to
be true? We invite you to listen to dozens of recorded interviews with our
clients who achieve these returns, month after month, year after year, through
good markets and bad – just CLICK HERE.

Client of the week

Compound Stock Earnings Founder, Joseph Hooper and Aaron Zalewski host
"UNCONVENTIONAL WI$DOM - The CSE Investment Show", a weekly
financial talk back radio program airing in Dallas, LA, Boston, Chicago, and
Atlanta. Unlike regular financial talk shows, which are full of esoteric fodder
like paying off your credit cards or picking a better mutual fund - we talk about
how you actually make money in the stock market through the use of Covered
Calls.

Each week we have a different client on the show as our guest and the show
is then archived on our website. The client of the week is Amber from North
Carolina. Amber has been a client of CSE many years and has attended
every type of seminar offered by CSE. Amber was looking for way to earn
income from her investments while staying home with her young son. By
utilizing the CSE techniques and Platinum Selections Services, Amber is
averaging 7 to 10% per month.

To listen to Amber’s appearance on our radio show - CLICK HERE.

To listen to past radio shows CLICK HERE.

-3-
Joseph Hooper’s Weekly Editorial

… last weekend I had the pleasure of introducing Greg Beauchamp to a great

large group attending the monthly and weekly Credit Spread Seminar……

…. there were over 300 attending between the folks there in person and
those on line….. great Seminar…..

… why is this so great…. Why so many folks attending…

… well…. Since the introduction of the Credit Spread Platinum Selections

service…. those that subscribe are achieving unusual returns on a weekly
and monthly basis…

…. returns that make the monthly subscription cheap…. The returns pay for
the service many times over... And the incredible education received us just a
(gigantic) bonus...

…. Greg’s conservative approach results in a consistency of returns at a rate

that is unheard of in the investment world….

….. Greg’s ability to communicate with subscribers to the service is

admirable… giving confidence to those that follow his trades ……

…. Greg is as concerned about “losing” money as he is about “making”

returns…..

…. as a result he does not send out positions to just be sending out

something…. he does the trades he constructs and sends out in his own
accounts...

-4-
… if you will read the CLIENT EMAIL section in today’s Cow Report you will
see multiple emails from subscribers to Credit Spread Platinum that
appreciate his conservative approach… his compassion in dealing with clients
questions and concerns….. and most importantly the fact that he walks the
walk….. meaning Greg has been doing this for a long time now… he invest
his own money in the positions he sends out…… he has experience……

… if he would just get some socks he would be perfect…..

… now…. I am really bragging on Greg for I respect him …. His abilities….

And the fact he wants others to succeed by subscribing to Credit Spread
Platinum ….. It's not often you get to mirror the trades and sit in on decisions
as they are made from a trader who makes MILLIONS of dollars a year
trading the CSE techniques... We have sent out one of Greg's brokerage
statements that support these claims... Actually, such an opportunity is
unheard of in the investment world...

…. If you think about it… all our folks conducting our Seminars “walk the
walk”….

….. Kenner and Jeannie…. Ed… Randy…all have the same concerns…
compassion…. and abilities as does Greg…. They are superior in the areas
they teach…. they all “walk the walk”..

… as you read this Cow Report Ed is conducting the two day Advanced
Charting Seminar in Dallas…..

….. again…. this is a huge Seminar with over 300 folks attending between on
line and in person….

-5-
… again…why is that….

…. It is simple… Ed walks the walk… his Platinum Selections produce returns

out of this world… just read the emails….. go to the Seminars… talk to
others…..

…. CSE is very special…. we are the only financial educational organization

out there that only associates with folks that have come up through the
“seminar ranks”…. that have used the CSE techniques to support their
families and grow their wealth….

… the only one…..

… that explains why our Seminar enrollments get larger each year…. that we
have clients that actually conduct our “Master Class” seminar….teaching
others how they have adapted and tuned our technique to meet their
particular financial requirements and goals….

…. the only one….

…. the only financial educational organization where you can return over and
over on line or in person for free until you “get it”….

…the only one….

…you can walk with our team as they “walk the walk”..

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…. It requires a little effort to “participate”….

…. are you to walk the walk also…..

….. in the investment world today….you have no alternative..

… moving on…

-7-
Another Great Month for Advanced Charting Platinum Selections
CLICK HERE for 14-Day Free Trail

Last month was another great month for our Advanced Charting Platinum
Selections Service with clients realizing extremely high returns from selected
trades. If you are trading your own account and you returned less than 5%
this month, perhaps you should check out our Advanced Charting Platinum
Selections Service. Many, many clients are realizing returns of 5%, 10%,
15% or higher on trades that generally last less than one week. Hundreds of
our clients are making these returns, what are you making?

Advanced Charting Platinum Selections service allows clients to identify the

Momentum Phase of the price cycle and then trade a Covered Call, LEAPS or
Credit Spread position for the potential of very high returns. If you have not
yet experienced the Advanced Charting Platinum Selections Service - CLICK
HERE to sign up for the 14 day Day Free Trial and see what it's all about.

See below for some emails received from our clients recently outlining their
weekly returns from the Advanced Charting Platinum Selections service.

Recent Advanced Charting Platinum Selections Client Trade Results

...........................................................................................

Trade Net Days

Action Symbol/Desc Price
Date Return Open

INTU Apr11 47
STC
10/28/2010 Call $4.49
9.5% 3
INTU Apr11 47
BTO
10/25/2010 Call $4.10

XEC Mar11 75
STC
10/28/2010 Call $7.50
5.6% 1
XEC Mar11 75
BTO
10/28/2010 Call $7.10

APKT Feb11 37.5

STC
11/3/2010 Call $6.90 9.2% 1
11/2/2010 BTO $6.32
APKT Feb11 37.5

-8-
 Call

INTU Apr11 47
STC
10/28/2010 Call $4.49
9.5% 3
INTU Apr11 47
BTO
10/25/2010 Call $4.10

SNDK Apr11 40
STC
11/5/2010 Call $4.98
11.2% 1
SNDK Apr11 40
BTO
11/4/2010 Call $4.48

AMT Apr11 50
STC
11/2/2010 Call $4.73
5.1% 5
AMT Apr11 50
BTO
10/28/2010 Call $4.50

TIBX May11 19
STC
11/2/2010 Call $2.60
6.1% 5
TIBX May11 19
BTO
10/28/2010 Call $2.45

VRX Apr11 27
STC
11/1/2010 Call $3.06
9.3% 4
VRX Apr11 27
BTO
10/28/2010 Call $2.80

Averages 8.2% 3

Robert

........................

AKAM MAY11 50 10/27/2010 11/2/2010 Mon Trade 5.40%

AMT APR 11 11/2/2010 11/4/2010 Mon Trade 8.33%

-9-
 APKT MAY 11 40 10/26/2010 11/3/2010 Mon Trade 9.94%

ARUN APR 11 21 10/29/2010 11/2/2010 Mon Trade 13.68%

C JUN 11 4 10/27/2010 11/5/2010 Mon Trade 13.13%

CAT MAY 11 80 11/3/2010 11/4/2010 Mon Trade 17.16%

CBS JUN 11 17 11/3/2010 11/4/2010 Mon Trade 8.18%

CLF APR 11 65 11/2/2010 11/3/2010 Mon Trade 5.01%

DPS MAY 11 35 9/29/2010 11/2/2010 Mon Trade 7.82%

EGO APR 11 19 9/29/2010 11/5/2010 Mon Trade 13.01%

FMCN APR 11 25 10/26/2010 11/1/2010 Mon Trade 9.85%

MICC APR 11 95 11/3/2010 11/4/2010 Mon Trade 13.55%

TGT APR11 52.5 11/3/2010 11/4/2010 Mon Trade 28.24%

TIBX MAY11 19 10/27/2010 11/1/2010 Mon Trade 14.14%

WPZ MAR 11 45 9/9/2010 11/5/2010 Spread 18.16%

Larry in TN

........................

Following is closing report for 26 trades from 9/30 to 10/29; avg return 11.73 , avg
hold time 8.7 days;
9/30 TRW JAN11-35 6.8O COST 1.70 PROF 25% 4 DAYS
10/1 RES MAR11-20 2.65 COST .20 PROF 7.5% 5 DAYS
10/1 CROX MAR11-11 2.75 COST .65 PROF 23.5% 8 DAYS
10/6 FFIV APR11-100 15.60 COST 1.50 PROF 9.6% 16 DAYS
10/6 HAS JAN11-40 5.90 COST .60 PROF 10.1% 9 DAYS
10/6 WPI FEB11-40 5.40 COST .30 PROF 5.5% 15 DAYS
10/6 CROXMAR11-12 2.90 COST .30 PROF 6.9% 3 DAYS
10/8 SNDK APR11-37 5.85 COST .90 PROF 15.38% 9 DAYS
10/14 TRW JAN11.40 5.30 COST .40 PROF 7.5% 14 DAYS

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10/15 WPI FEB11-40 6.16 COST 1.54 PROF 25% 7 DAYS
10/18 BIDU JAN11-100 12.30COST 1.70 PROF 13.8% 20 DAYS
10/18 BIDU JAN11-100 15.08 COST 1.50 PROF 9.94% 1 DAY
10/20 ILMN MAR11-48 6.40 COST .20 PROF 3.1% 2 DAYS
10/21 , AKAM FEB11-45 5.80 COST .36 PROF 5.17% 4 DAYS
10/22 FFIV APR11-90 14.40 COST 1., 30 PROF 9% 3 HOURS
10/22 BIDU MAR11-100 15.60 COST 2.00 PROF 12.8% 4 DAYS
10/25 VRSN JAN11/30 3.75 COST .20 PROF 5.3% 20 DAYS
10/26 FFIV APR11-95 15.50 COST .70 PROF 4.5% 2 DAYS
10/26 BIDU MAR11-105 15.40 COST 2.00 PROF 12.9% 2 DAYS
10/26 NFLX MAR11-170 20.50 COST 6.00 PROF 29.2% 2 DAYS
10/27 ILMN MAR11-50 5.90 COST 1.40 PROF 23.7% 7 DAYS
10/27 AKAM FEB11-45 7.05 COST 1.45 PROF 20.5 % 3 DAYS
10/28 ALK APR11-50 7.00 COST .10 PROF 1.4% 3 DAYS
10/29 XEC JAN11-70 8.70 COST .50 PROF 5.74% 52 DAYS
10/29 FFIV APR11-110 17.00 COST 1.50 PROF 8.82% 2 DAYS
10/29 NTAP MAR11-50 6.40 COST .36 PROF 5.62% 9 DAYS
Thanks!!
ES

........................

Hi Ed,

TIBX Feb 11 10-14 10-25 12.1%

AKAM Feb 11 10-15 10-25 10.8%

APKT Feb 11 9-29 10-25 11.1%

FFIV Feb 11 10-25 10-26 10.0%

NFLX Jan 11 10-26 10-26 16.0%

WRLD Aprl 11 10-26 10-26 23.2%

FFIV Jan 11 10-25 10-26 9.9%

FFIV Jan 11 10-22 10-25 18.5%

AKAM Feb 11 10-25 10-27 16.3%

AKAM Feb 11 10-12 10-27 40.0%

-11-
NFLX Jan 11 10-26 10-27 11.5%

XEC Mar 11 10-21 10-29 6.2%

AMT Jan 11 10-14 10-29 7.8%

NTAP Jan 11 10-22 10-29 9.5%

VRX Jan 11 10-12 10-29 4.9%

ILMN Jan 11 10-19 10-27 59.1%

It was my best week so far !! Thanks again for all that you do !

Scott

........................

Ed

It is ..... ALL in the CHARTS

Best week in 7 weeks and they keep getting better

VIT Feb 11 30 STC 10/26 $7.80

BTO 10/13 6.70 15.9%

AKAM Feb 11 48 10/27 6.98

10/25 5.65 22.9%

FFIV April 11 100 10/27 20.17

10/25 13.00 54.9%

ILMN March 11 50 10/27 8.40

10/25 6.20 35.0%

VRSN March 11 33 10/29 3.50

10/25 2.71 28.1%

SPRD May 11 12.5 10/29 3.21/3.30

10/28 3.0 6.3%

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XEC March 11 7.5 10/29 7.80
10/28 7.10 9.5%

Thanks

Al S

........................

Ed,

Flat week in the market---Awesome returns with Platinum Selections. The

timing of entering and exiting positions is coming together. For the week, I
closed 7 positions with an average return on 49%.

DPS
9/28/10 BTO Feb 35 @ 2.50
closed 10/28 @ 2.80
Return 12%

AKAM
10/25/10 BTO Feb 48 @ 5.80
closed 10/28 @ 8.10
Return 39%

FFIV
10/25/10 BTO Jan 100 @ 9.60
closed 10/27 @ 18.20 and 18.30
Return 89.5% and 90%

SPRD
10/15 BTO Feb 12.50 @ 2.60 and 2.65
closed 10/26 @ 3.00
Return 15% and 13%

Happy Trading,

Marilyn

........................

-13-
Ed,

AAP 11 DAYS 34%

ILMN 8 DAYS 36%
NTAP 11 DAYS 10%
OVTI 16 DAYS 13%
TIBX 10 DAYS 11%

AVERAGE OF WEEKLY CLOSED POSITIONS 20%

THANKS,

MIKE S.

........................

If you have not yet experienced the Platinum Selections service - CLICK
HERE to sign up and for the 14 Day Free Trial and see what's it's all about.

Compound Stock Earnings Customer Service

817-882-9142

.....................................................

Background information on Platinum Selections

For those that are not aware, Ed Watanabe developed and teaches the CSE
2-Day Advanced Charting Course. This course allows, with a very high
degree of accuracy, investors to see a "V" form on the line chart and to
understand if that "V" is just a continuation of the current price direction of the
stock or is in fact the beginning of a change in trend. This one critical piece of
information has revolutionized the CSE technique and has allowed increases
in returns in the range of 1.5% - 2.5% per month for Covered Calls and much
higher for LEAPS and Credit Spreads. Since we introduced this new seminar
two years ago, we haven't spoken to a single client who has ever remarked
that the Advanced Charting Seminar hasn't made them a lot more money.

-14-
Over the past year, Ed Watanabe has been conducting a bi-monthly webinar
called Advanced Charting Mastery Coaching. These Mastery Coaching
webinars have focused on teaching clients how to use Advanced Charting to
identify a stock that is about to enter its Momentum Phase. The Momentum
Phase is characterized by explosive upward movements in the stock price.

The Momentum Phase is obviously an ideal time to enter a Covered Call,

LEAPS or Credit Spread trade to generate dramatic short-term profits. Take
the chart below as an example:

One can see that being able to identify the beginning of Momentum in the
price cycle can be extremely profitable. Such a position using the LEAPS
technique has the potential to produce 30%+ returns in a matter of days.

Wouldn't it be fantastic if there was a way to scan thousands of stocks

and produce 1 to 3 stocks per week that were ready to go into the
Momentum Phase?

-15-
Well, that is exactly what the new Platinum Selections service will do. It will
provide to subscribers 1 to 3 stocks per week (on average) that have very
high likelihood of dramatic short term price movements. These are perfectly
positioned to enter using the CSE Covered Call, LEAPS or Credit Spread
technique to realize dramatic weekly returns.

In fact, many CSE clients who have attended Advanced Charting Mastery
Coaching are already using this process and making returns that are
extremely high, even by CSE's standards. They are already realizing returns
of 20%, 30%, 40% or more on a trade that generally last less than one week!

Launch of the Platinum Selections Service

Platinum Selections is a brand new and very exciting service. This service is
designed to provide clients with one to three positions per week that are in the
perfect place in the price cycle for dramatic upward movements in the stock
price. These are obviously ideal candidates to execute the CSE LEAPS
technique on for the potential for very high weekly returns. This service will
do the following:

1. Provide an email to subscribers when a stock Ed Watanabe is

following enters into the beginning phase of Momentum. The email will
say "XYX stock is entering into the birth phase of momentum and has
very high likelihood of significant price movements over the short
term". The client can then choose whether to enter a Covered Call,
LEAPS or Credit Spread on that stock. The ideal trade, however, is a
LEAPS position in order to take advantage of the extreme upward
momentum of the stock price and allow the potential for 20% or higher
returns from the trade for the week.

2. Subsequently an email will be sent out to subscribers when the stock is

entering into the end of upward momentum several days later. The
email will say "XYZ stock is beginning the death phase of momentum,
now is an ideal time to close a position on XYZ stock". This would be
an ideal time to close the Covered Call, LEAPS or Credit Spread
position on the stock and take profits.

3. Based on past activity we anticipate approximately one to three

Momentum Trades per week(on different stocks) to be sent out to
Platinum Selections Subscribers.

4. Ed Watanabe will also host a 1-hour webinar for Platinum Selections

Subscribers each week, which will go into great detail analyzing the
charts of open Platinum Selection positions, charts of the major market

-16-
 indexes and positions that he is contemplating opening that week.
This will be a great opportunity to "sit in" with Ed as he analyzes
positions and learn how to select these Momentum positions yourself.
This webinar will be hosted weekly.

Platinum Selections Client Trade Results

Here are just a few of the emails we have received from subscribers to
Platinum Selections. You will see that the returns being generated are
dramatically in excess of our normal 3 - 6% per month goal. In fact, the
returns being generated by the new Platinum Selections service are the
highest we have witnessed on a consistent basis in 40 years in the markets.

......................................................

Dear Ed,

Just wanted to say to you & CSE.... thanks so much for the Platinum
Selections service begun this month! Additionally, I was fortunate to have
also taken the mastery coaching sessions with you last year. As a result of
only two and one half of weeks of trades associated with this service, I have
already paid for one year and 9 months of my monthly subscription
price!

Congratulations to you, Ed, and to CSE; for this significant addition to the list
of services that are offered by Compound Stock Earnings.

Sincerely yours,

Bruce

......................................................

-17-
Hey Ed~

7/6/10 LFL BTO Sept 20 $0.85

7/22/10 STC $2.90 241.18% 2 1/2 weeks (sold 1/2 of my
position)
7/23/10 STC $3.00 252.94% 2 1/2 weeks (closed entire
position)

7/22/10 TIE BTO Jan 22 $3.10

7/23/10 STC $4.20 35.48% 1 day (sold 1/2 of my position)

7/22/10 CAT BTO Jan 65 $8.30

7/23/10 STC $9.35 13% 1 day (sold 1/2 of my position)

Jo
......................................................

Ed,

Since I first subscribed to Platinum Selections, I have executed 8 trades. The

average number of days open is 3. My average return across these trades is
8.7%. Assuming a 31 day month, this equates to a return of 89.9% per
month.

Thanks for all your help.

Robert

......................................................

HSY (Hershey):

June 3: Bot (10 contracts) Nov 2010 50 calls to open @ $3.00

June 7: Added (10 contracts) same option @ $2.55

Ave Cost: $2.775

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June 8: Sold to Close (20 contracts) @ 3.55

Overall Profit: $.775/share

% Return: 27.9%

Dan

......................................................

CSE,

First Platinum Trade Closed Out:

Bought HSY on 6/3/10 @ $2.20

Sold HSY on 6/8/10 @ $3.40

Profit of 55% over 6 days.

Regards,

Glenn

......................................................

6/3/10 BOUGHT HSY JAN 11 48 @ 4.30

6/8/10 SOLD HSY JAN 11 48 @ 4.80

11.6% PROFIT 6 DAYS

DOUG P.

......................................................

-19-
Dear Joseph:

I want to thank you all for helping me. I completed Eds course 2 weeks ago. I
have placed about 2 dozen momentum trades and have made at least 3.4
percent to a max of 31.5 percent per trade. The time I am in a position can
be from 2 hours to about 2 weeks. The charting tool is
greaaaaaaaaaaaaaaaat. I am still in some positions that have not moved yet,
but they will.

Tom

......................................................

Dear Ed:

6/3/10 BTO HSY Jan 11 48 @ $4.20

6/3/10 STC HSY Jan 11 48 @ $4.50

7.1% return same day

Thanks Julie

......................................................

HSY (Hershey):

June 3: Bot Nov 2010 50 calls to open @ $3.00

June 7: Added contracts same option @ $2.55
Ave Cost: $2.775
June 8: Sold to Close @ 3.55

Overall Profit: $.775/share

% Return: 27.9% in five days

-20-
Dan

......................................................

HSY

6/03 bto 49.00@3.50

6/09 stc @4.20 20% gain

Thanks,

Ed

......................................................

Hi ed

Today I bought CRUS sept 15 at 2.90

Sold it 2 hours later at 3.2 for 10% gain Thanks Ashok

Sent from my iPhone

Ashok

......................................................

-21-
Ed,

ABC:

6/9/10 BTO

6/16/10 STC

12.8% gain

SNDK

6/15/10 BTO

6/16/10 STC

11.5% gain

Michi

......................................................

Ed

ANV entry 6/16 @ 19.88 closed 6/18 @ 21.49 for 7.7% net comm.

7.7 percent for 3 days

TIE entry 6/10 @ 18.70 closed 6/14 @ 20.42 for 8.9% net comm.

8.9 percent 5 days

CMG entry LEAP 6/14 STO Sep 150C @ 14.9 STC 6/15 @ 15.5 for net 4%

-22-
4 percent in 2 days

FFIV entry LEAP 6/14 STO Oct 70C @ 8 STC 6/15 @ 8.8 for net 9.5%

9.5 percent in 2 days

James

......................................................

Ed

GLD 6/8-6/18 4.4%

GDX 6//8-6/17 2.0%

SNDK 6/15 2.6%

TWC 6/15-6/16 1.3%

AVE 2.57%

John

......................................................

6/14 BTO FFIV JAN 11 70 @ 10.70

6/16 STC FFIV JAN 11 70 @ 12.90

11.2% TWO DAYS

-23-
......................................................

06/03/2010 ABC BTO Aug 30 Call @ 3.30

06/16/2010 ABC STC Aug 30 Call @ 3.40 for 2.4% in 9 trading days

06/15/2010 GG BTO Oct 41 Call @ 4.75

06/16/2010 GG STC Oct 41 Call @ 5.45 for 14.3% in one trading day

Best Regards,

Ross Smith

......................................................

06/14/2010 FFIV BTO Oct 65 Call @ 11.49

06/15/2010 FFIV STC Oct 65 Call @ 12.30 for 6.9% in 2 trading day

06/15/2010 SNDK BTO Oct 46 Call @ 7.30

06/15/2010 SNDK STC Oct 46 Call @ 7.70 for 5.2% in one trading day

Best Regards,

Ross Smith

......................................................

-24-
TIE
BTO Dec/10 18 call@3.80 on 6/10
STC @4.50 on 6/15

18% gain thanks to you, Ed

......................................................

Hi Ed

Today I bought FFIV oct 70 for 8.1 at 10:05am Sold oct 70 for 8.4 at 10:18an
3.7% in 13 minutes Thanks Ashok Sent from my iPhone

......................................................

Bought TIE 11 JAN at 4.2 on 6/10

Sold at 5 on 6/14

19% profit in 4 days

Ed R

......................................................

Ed,

Today I did

HSY Jan 11 48 BTO at 4.00 at 9:30 am

HSY Jan 11 48 STC at 4.20 at Noon

-25-
5% in 2 in a half hours.

Looked like exhausting a little so took profit and got out.

Anne

......................................................

Ed

6/8 BTO HSY JAN 12 45 @ 7.60

6/11 STC HSY JAN 12 45 @ 8.60

13%

Thanks Ed !

Andy

......................................................

Hi Ed,

Thanks for the insights; they are very instructive. Please continue to send
these emails as often as you can, they are great!

I made 7.8% over three days in an HSY LEAP position (BTO Jan 12 45 at
7.90, STC at 8.80, STO the Nov 10 55 call at 1.10, BTC at 1.40). Even
though I had to buy back the call and let the LEAP run, I still made a
significant profit, which would have been even more as a straight momentum
trade.

Michael

......................................................

-26-
6/7/10 ABC bto Jan 11 30 call @ $3.50

6/11/10 stc @ $4.00

14.3% return in 5 days

......................................................

Had not intended holding this position over the weekend!

06/03 BTO HSY Aug. 10 $49 @ $2.55

06/08 STC @ $3.10
21.5%

PS

HSY BTO 6/3 Jan11 $49 @ $3.80

HSY STC 6/9 Jan 11 $49 @ $4.90

28.9% return

06/10/2010 TIE BTO Sep 17.50 Call @ 3.20

06/14/2010 TIE STC Sep 17.50 Call @ 4.00 for 25% in two trading days

Best Regards,

Ross Smith

-27-
......................................................

LEAP BOUGHT SOLD DAYS % RETURN

GLD 6/1/10 6/7/10 6 5
HSY 6/3/2010 6/8/2010 5 11.6
ABC 6/4/2010 6/10/2010 6 11
TIE 6/10/2010 6/10/2010 0 10

Bruce

......................................................

Hi Ed

Bought HSY at 2.60 Friday 6/4/10 at the close

Sold for 2.90 on mon 6/7 at 12:30

11.5% in 3 hrs

Thank you

Ashok

......................................................

Joseph:

Platinum Selections Report:

6/3/2010 ABC bto Aug 10 30 call @ 3.00

6/3/2010 stc @ 3.10

3.3% return one day

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6/3/2010 HSY bto Aug 10 48 call @ 2.90

6/3/2010 stc @ 3.10

6.9% return one day

Both returns in less than 5 hours.

WOW!!!!

Thanks so much,

John

......................................................

Dear Ed:

From: s.f@xxxxxxxx.com

Date: June 4, 2010 6:34:09 AM CDT

To: ed@compoundstockearnings.com

Subject: 23% on HSY.

Thanks:

S.F

......................................................

Dear Ed,

6/2 BTO NGD NOV 10 5 @ $2.20

6/2 STC NGD NOV 10 5 @ 2.25

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 2.3% same day

John

......................................................

Ed,

HSY:

6/3/10 Bought Jul10 47 Call @ 2.85 and sold @ 3.20 for

12.3% profit later in day.

Bill

....................................................................................................................

Price for subscriptions

Remember, many clients attending Advanced Charting Mastery Coaching

over the past year where Ed was teaching how to select Momentum Trades
were realizing returns of 20%, 30%, 40% or more on a trade that only lasts a
few days out of the week. The objective of Platinum Selections is to produce
one to three trades per week (on average) that meet these criteria and to
provide a weekly webinar to talk about the process of selecting these
positions. This is an extremely valuable service with the potential to make
returns dramatically higher than any other service in the history of CSE. It is
also extremely time consuming to select and manage these positions. This is
the most premium of CSE services that allows the potential for the highest
returns.

The price of this service will be $1,495 per month. That includes both the
email selections for entry and exit of positions and also the weekly webinar
with Ed Watanabe.

At this price, the service will pay for itself many times over each month. For
example, if you allocate $10,000 to a Platinum Selections trade and one trade
produces 20% return - that is $2,000 profit in a week. This is more than the
cost of the service for an entire month and represents just one trade in one
week. Most clients will be allocating far more than $10,000 per trade and
participating in far more than one trade per month (we estimate the service

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will produce one to three trades per week - four to twelve trade per month!).
This service will pay for itself many times over each month and provide the
potential for very significant returns!!!

14-Day Free Trial

To prove the value of this service, there will be a 14-Day Free Trial of the
Platinum Selections Service. When you sign up for Platinum Selections, you
will not pay a penny for 14 days. This gives you two weeks to try out the
service and attend the webinars and see the results for yourself. You can
cancel at anytime within 14 days and you will not be charged a penny. If you
chose to continue your subscription you will be billed at the end of the 14-Day
Free Trial and each month thereafter. You can cancel at anytime.

Remember, you can try the service out now, cancel within 14 days and not
pay a penny if you don't see the results. CLICK HERE to sign up and for the
14 Day Free Trial and lock in the $1,495 price if you choose to continue to
service.

When will Platinum Selections and the Weekly Webinars Begin?

The Platinum Selections service has already begun. The webinars are
hosted every Thursday at 11:30am CST. The webinars are also archived for
later viewing. The Platinum Selections email service has already began and
positions are emailed to subscribers as they are identified.

What if I haven't attended any of CSE's seminars?

You are still eligible to sign up for the 14-Day Free Trial and the Platinum
Selections subscription if you are yet to attend any of CSE's seminars. The
new Platinum Selections email service and weekly webinars will provide you
with great insight into what CSE is all about and the benefits of our Covered
Call / LEAPS / Credit Spread techniques.

Is there a limit to the number of available subscriptions?

Yes. The Platinum Selections service was offered initially three weeks ago to
clients who have attended the CSE Advanced Charting Seminar. Several
hundred clients subscribed within the first hour of the service's
announcement.

There is now only an additional 50 subscriptions being offered at the $1,495

price and then the service will be closed to new subscribers. This will keep

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subscriptions at a manageable number to facilitate reasonable webinar class
sizes.

How do I sign up?

CLICK HERE to sign up for the 14 Day Free Trial and lock in the $1,495
price if you choose to continue the service. If you are interested in this new
service, best sign up for the FREE TRIAL now. There are now only 50
remaining subscriptions and we expect them to sell out quickly.

We are very, very excited to get the highest returning of CSE's services into
the hands of our clients. CSE continues to grow and progress.

Compound Stock Earnings Customer Service

817-882-9142

-32-
Attend a FREE LIVE ONLINE introductory workshop

These sessions are held each Tuesday evening from 7.00 – 9.00pm Central
Time. They are conducted live over the internet, so investors from all over
the world can attend in the comfort of their own homes.

At these online workshops, we provide an introduction to our Covered Call

technique. Investors are also invited to discuss particular positions they hold
and we will demonstrate how to lock in a MONTHLY return of between 3% -
6% on a stock investment.

To register for a free online introductory workshop - CLICK HERE

-33-
Want Proof???

Do you want proof our technique works?

The following account was traded using our most advanced technique, the
revolutionary CSE Credit Spread technique. Of the three techniques that we
trade and teach our clients to trade - the Credit Spread technique is the
highest returning. It allows, when applied correctly, the production of 6 - 12%
monthly returns with 100% of the account in cash at the end of each option
month.

We encourage clients to begin investing using the Covered Call technique

which, when applied correctly, allows the production of 3 - 6% monthly
income from a stock position. Once proficiency is gained using this technique
through 6 months of live trading, clients can then progress to the advanced
Credit Spread technique.

The credit spread technique, when applied correctly by experienced

investors, allows the potential for more than 100% returns per year as
evidenced in the statement below. This is what is possible when you learn
the CSE technique, begin with Covered Calls and then progress to our
advanced techniques!

The following account produced 120% return in just 8 months. An average

return of 15% per month - due to the effect of monthly compounding.

For more detail, including monthly brokerage statement summaries, go to

https://www.compoundstockearnings.com/want-proof.htm

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Initial Account Start

-35-
Current Statement

-36-
How many CSE clients are actually successful?

A survey of seminar attendees was conducted at a March 2009 Compound

Stock Earnings 2-Day Seminar. This seminar was primarily attended by
existing clients who are currently using the Compound Stock Earnings
technique.

Of the 145 clients in attendance at that seminar the survey revealed the
following results:

• 4% of clients were achieving less than 2% PER MONTH

• 19% of clients were achieving between 2% and 3% PER MONTH

• 77% of clients were achieving 3% or more PER MONTH

The survey sheets filled out by each individual client are posted on our
website at http://www.compoundstockearnings.com/want-proof.htm

Survey of all 145 attendees at a March 2009 Seminar

77% of attendees making 3% or more per month

<2% per month

4% of attendees 2 - 3% per month
19% of attendees

>3% per month

77% of attendees

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Update of this week’s activities

Here is an update of the week’s activities. The transactions below are ones
executed by us. We also send these transactions out real time, as they
happen, to our Covered Call / LEAPS Selections subscribers. Watching what
we’re doing in our accounts is a great way for clients to learn to the practical
application of the technique!

Remember, our returns are represented by real cash, not paper values that
can disappear as quickly as they appear. These cash returns can be
withdrawn and spent on whatever you desire or all or some positions can be
left to compound your values into significant figures as time goes by. Unlike
speculating in stocks, the day-to-day market value of the stocks and LEAPS,
when writing covered calls is not significant. It is the cash returns produced
each week that prevents you from finding yourself in a situation where you
have to liquidate a stock at a loss to generate income. You receive every
week or two returns that the average stock speculator would be overjoyed to
have on a yearly basis. To subscribe to the Covered Calls / LEAPS
Selections service just CLICK HERE. The cost is $100.00 per month and
charged to your credit card. (You can only subscribe to Covered Call / LEAPS
Selections if you are a graduate of the 2-Day Intensive Seminar.)

If you have stocks and are not selling calls against them each month, you are
leaving large amounts of cash on the table month after month. Every month
you do not sell covered calls against your stocks you are simply making less
money and exposing yourself to more risk.

If your broker says it is risky to sell calls against your stocks, he is ignorant of
the covered call technique (like most are) and you need another broker.

Subscriptions to Covered Call / LEAPS Selections service are $100.00 per

month. You can only subscribe if you are a graduate of the 2-Day Intensive
Seminar.

To subscribe to the Covered Calls / LEAPS Selections service just Click

Here.

Non 2-Day Intensive Graduates can subscribe to the Covered Call

Toolbox (without the Selections service) for $80 per month. Click Here.

-38-
How to get educated

For a country so focused on education, our level of financial literacy is

incredibly poor. The Street, serving its own interests, has taught us all the
wrong ways to invest.

Even the most business savvy and educated generally have no idea how to
effectively invest for growth throughout their working lives and for income in
retirement.

The world is caught up in a speculative “buy and hope” mentality to secure

their financial futures. To the correctly educated, the foolery going on in the
investment world today is almost criminal.

You need an education about how to invest your money. No one else is
going to do it for you. You wouldn’t be reading this if your financial advisors
had consistently made you money in both good markets and bad.

Attend a FREE LIVE ONLINE introductory workshop

These sessions are held each Tuesday evening from 7.00 – 9.00pm Central
Time. They are conducted live over the internet, so investors from all over
the world can attend in the comfort of their own homes.

At these online workshops, we provide an introduction to our Covered Call

technique. Investors are also invited to discuss particular positions they hold
and we will demonstrate how to lock in a MONTHLY return of between 3% -
6% on any stock investment.

To register for a free online introductory workshop - CLICK HERE

-39-
2-Day Intensive Seminar

Our 2-Day Intensive Seminar provides the most comprehensive Covered Call
education available anywhere in the world. The seminar is also offered online
through a live audiovisual link over the internet - so attendees can learn in the
comfort of their own homes.

The Seminar explains and significantly elaborates on every topic contained in

Covered Calls: A Wealth Option and covers much, much more.

The most vital function of the 2-Day Intensive Seminar is to show investors
the practical application of our proprietary rules and techniques for Covered
Call investing. This is the information that simply can't be passed on through a
book.

Investors leave the 2-Day Intensive Seminar with an unprecedented

knowledge of the Covered Call technique and are ready to begin investing the
very next day.

Our 2 Day Intensive Seminar includes our “Covered Calls: A Wealth Option -
Seminar Manual” which is the most comprehensive covered call manual ever
compiled and is not available for separate purchase.

Also included in the 2 Day Intensive Seminar package are 10 two hour
audiovisual Herd Talk CD's (a separate $700 value).

The 2-Day Intensive Seminar Package is $3,750.

To register - CLICK HERE

-40-
Upcoming Seminars

2-Day Intensive Seminars

Our 2-Day Intensive Seminars are held EACH MONTH in selected locations.

• Atlanta – November 13 & 14, 2010

• Los Angles – November 20 & 21, 2010
• Chicago – December 4 & 5, 2010
• Boston – December 4 & 5, 2010
• Dallas – December 4 & 5, 2010

To register for a 2-Day Intensive Seminar - CLICK HERE

Remember we allow all our past graduates to re-attend any seminar

anywhere in the country for free, at any time they choose.

The reason we do this, is so people who are brand new to our technique can
meet and network with “seasoned pros” that have been using our Covered
Call technique for years. We are the only company in the financial education
industry that allows existing clients to repeat seminars for free.

We do this, as we have nothing to hide from those who are currently using
our technique. About 50% of the audience at each seminar is existing clients
who are currently using our technique. It is also very rare that we ever hold a
seminar where there aren’t several clients in attendance who have been
using our technique for over a year. Come along and you’ll hear their
successes first hand.

Additionally, our Dallas seminars are offered online – so you can attend them
from the comfort of your own home and without having to travel. This is
achieved through a live audiovisual link over the internet. If you attend online,
you see exactly what the live audience sees. You also get to hear the
presentation, hear the audience’s questions and ask questions yourself.
Online attendance is exactly like sitting in the live seminar room, except
without the expense of travel. Online attendees are then entitled to attend as
many live seminars as they wish, at any time in the future.

To register for a 2-Day Intensive Seminar - CLICK HERE

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Special Offers

Announcing The CSE Wounded Patriots of America Program!!!

In recognition of the amazing courage and sacrifice of our armed services

members, CSE is very proud to announce the CSE Wounded Patriots of
America Program. This program is designed to allow any American veteran
who was wounded on active duty in:

* Gulf War 1

* Gulf War 2; or

* Afghanistan

To receive unlimited free access to all CSE seminars either in person or

online. This free access includes:

* Free attendance of the 2-Day Intensive Seminar

* Free attendance of the 2-Day Advanced Charting Seminar

* Free attendance of the 2-Day Credit Spread Seminar

* Free collection of Masters Class DVD's (2006 - 2009 inclusive)

The program is designed to allow our wounded patriots to take control of their
financial futures and participate in a program that will allow them to build
wealth, income and independence. Any American veteran that meets the
above criteria can take this information, learn it and become financially
independent in just a few short years and have an income stream and build
wealth for the rest of his or her life. This is a great new program.

Any veterans out there who are CSE clients, please send an email to your
local office of Veteran Affairs and let them know of your success with CSE
and this program. Please CC support@compoundstockearnings.com on this
email. Please do your part to help our wounded veterans by creating
awareness of this new program. It will change lives and directly benefit the
most deserving in our great country.

Thank you to our Wounded Patriots of America for defending the freedoms
that we enjoy each day. Call us at 817-882-9142 if you are a wounded
veteran eligible to participate in this program.

-42-
Tune in to our weekly radio show – “UNCONVENTIONAL WI$DOM”

Compound Stock Earnings Founder, Joseph Hooper, and Aaron Zalewski

host "UNCONVENTIONAL WI$DOM - The CSE Investment Show", a weekly
financial talk back radio program airing in Dallas, LA, Boston, Chicago, and
Atlanta,

Apart from taking live callers, we have a long-term client on the show each
week as our guest to talk about their returns using our technique. Tune in,
and you'll hear how our clients are making returns between 3% and 6% per
month, even those who had never bought a stock in their life before becoming
Compound Stock Earnings clients. After their appearance on our radio show,
we interview them and post these interviews on our Web-site.

To listen to past radio shows CLICK HERE.

-43-
What is the Covered Call Toolbox?

The Covered Call Toolbox is a proprietary search and filter tool developed by
us specifically for the use of our technique. The toolbox completely replaces
and improves on PowerOptions, searching for positions with REAL TIME
PRICES and is tailored specifically to meet our rules for finding and
constructing positions.

The toolbox includes the following items:

1) CSE Screener – Covered Calls (REAL TIME PRICES)

2) CSE Screener – LEAPS (REAL TIME PRICES)
3) Option Chain (REAL TIME PRICES)
4) SSR Worksheet
5) CPR Worksheet

Following is a screenshot of the new CSE Covered Call Toolbox:

To subscribe to the Covered Calls / LEAPS Selections service + Toolbox

just Click Here. Only 2-Day Intensive Seminar Graduates can subscribe.

Non 2-Day Intensive Graduates can subscribe to the Covered Call

Toolbox (without the Selections service) for $80 per month. Click Here.

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CLIENT EMAILS

Joe/Aaron,

I really found the monthly and weekly seminars very enlightening. It’s great
having a different presenter to give me a varied insight into your techniques.

Having people teach that actually do it for a living, gives it absolute credibility.
I really enjoyed Greg’s honesty and insight into how he trades. I also want to
acknowledge and thank Debbie for her excellent support.

Gregory

Dear Gregory:

Thanks for your note. We do appreciate you attending the Credit Spread
Seminars this last weekend.

You hit it on the head; Greg is a fantastic teacher of the Credit Spread
techniques for he walks the walk!!

It does make a difference and that is why all our folks that teach the CSE
Seminars have come up through the educational Seminars and have had
years of actual success with their own money before ever teaching others the
techniques.

We know of no other financial educational firms that do what is described

above with folks that teach their methods.

If you think about it, what is wrong with main street brokers is the fact that
main street recruits young folks to be brokers that have no actual

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experience.... they teach them the regulations so can pass the brokers test...
that's it... then they turn them loose to "handle" others money... when in fact
they have none themselves...and have no experience handling others money
etc. etc.... sort like someone getting a private pilot’s license and then going
work immediately flying 747 airliners….

Thanks for your participation and thanks for being a client.

Joseph R. Hooper

Dear Ed:

What a day last Thursday (Nov 4) was!

I made more that day than any other since I started

Platinum!

Closed xxx,xxx,xxx,xxx,xxx,xxx,xxx most of which I had held only a day and

made 8-10% on those and closed two which I had held for a couple of
weeks. I always put in a GTC at 10%. It keeps me from riding the stock up but
I also catch spikes, which I wouldn't have seen unless I sat by my computer
all day, which I do not do so it evens out.

As you say, Ed, "You can always get back in"-- so this method works for me.

Thanks for your wisdom and help.

Bev

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Hi --

When we do the TSS for income, we then place a GTC to buy back the call
upon a 5% return or when in 25% of current cycle. Is there a quick way to
determine how to get to that 5% return in advance based on the stock price
not call price. For instance: I recently STO 15k certain stock at $25, Jan 12,
premium = $6.68 My price of stock is $29. 5% return $1.45. at which time I
would buy back the call when ask price is $5.22. However, the GTC is
usually based on strike price and not price of call. So is there a quick way to
convert that to get to price of stock.

Barbara

Dear Barbara:

If you are as confused as you email has made me, we are both in real trouble.

Not really sure what you are asking but going to take a shot at it.

First, the BTC value is a value that, when subtracted from the premium you
received, nets you a return of 5% based on what you paid for the stock or the
market value, whichever is greater. That is it.

Now, if you use the "Strike Price Selector" in the toolBox it figures all that out
for you, the proper strike, the BTC amount etc. etc.

Thanks,

Joseph R. Hooper

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Joe – thank you for responding so quickly. Just for clarification. When I STO I
received $6.68 premium for call. The return of 5%on $29 (my purchase price)
is $1.45. So $6.68 less $1.45 equals $5.23, but that would reflect my BTC bid
price. Is there a way to determine stock price should be based on a BTC bid
at $5.23. That’s the step that hasn’t been answered.

Barbara

Dear Barbara:

Ok, it will not be answered here either.

You have gone past the point of understanding.

Get out your seminar manual and look it up or attend the 2-Day Intensive
Seminar again.

Thanks,

Joseph R. Hooper

Joseph,

A friend of mine brought the following situation to my attention:

HGSI closed Wednesday at $24.33. The Nov10 17.5 calls ended at $8.30
ask, while the Nov 10 20 calls ended at $6.20 bid.

My friend's question to me was, "Can't I (he) earn a $2.50 profit at expiration

when I (he) buys the 17.5s and sells the 20s for a net $2.10 debit

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(investment), yielding a $0.40 (19%) net profit in nine days so long as the
stock closes above $20 at expiration?"

I told him the math worked, but the trade is not a covered call (because he
would not own the underlying stock), that it violates the basic CSE credit
spread rules (while he was shorting the option nearest the current underlying
stock price and buying the option farther from the current underlying stock
price, the situation created a net debit, not a net credit), and it possibly
violated the LEAPS rules (because the expiration is so soon and the trade
requires the stock to stay above a specific price).

The trade is tempting...it's an anomaly. Is this an inverted, quasi-protected

version of Jay's Fast Cash (we're within two weeks of expiration)? What do
you think? Should I consider making the trade?

Duane

Dear Duane:

Your friend is a financial fool.

This is not a chat room.

Tell you dumb ass friend to take the Seminar.

Don't waste our time with this crap or you will never get a question answered
again.

Watch who you have as friends.

Joseph R. Hooper

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Joe,

Wanted to tell you that Greg did an outstanding job with the Monthly and

Weekly Credit Spread presentations this weekend. I have attended all the

ones in Dallas and thought these were really at the top of the heap. Greg did

a great job of making the trading real with the examples and his own

experiences. I think I have finally figure out that I'm a conservative trader.

CSE continues to do a great job with all the classes and is by far the best I've

attending during my 20+ years of attending training classes. Keep up the

great work.

Regards,

Larry

Dear Larry:

Well, first, thanks for attending the two Credit Spread Seminars this past
weekend. We do appreciate you!!

Yes, Greg is great. He supports his family using the knowledge he teaches.
Nothing better than that for honesty, integrity and willingness to help others.
However, Greg is just like all our other Seminar presenters in that he is first a
student as all have been. To my knowledge, we are the only financial
educational organization that has 100% of our folks teaching others are

-50-
actually clients with years of experience with out techniques.

Thanks to you and you wife for being clients. We do appreciate your
participation.

Thanks,

Joseph R. Hooper

Ed,

Only those of you with extensive AC exposure might be able to offer an

opinion on this relative question.

When the tick significantly crosses a BB, does the degree of the BB
excedance offer any prediction of the closing tick for the next day, i.e. observe
the OEX significant cross of the BB today, would you expect the extent of
Thursday's tick exceeding the UBB predict a level, down or up Friday?

It is still all in the charts, if Ed is teaching me how to read them.

Teach, see you again in two weekends.

Don

Hi Don....

Was it possible to expect the tic to break through the UBB today? It was
highly suspect that it could happen. Why? L1 is high but can go higher if you

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look back in history. L7 was high but red and blue could turn up...which
happened. The market forces being a strong green day moved all of the
Indices up and OEX moved with momentum with all of the other Indices. The
Flare on chart 2, the upward bending UBB also gave an early warning that
this was move was possible. The price tic can move through an upward
bending UBB easily...and it did. What we never know is how much
momentum will be present when it happens. Now the next level of resistance
is C1. With M1 dramatic up, the tic above the UBB...expect either a flat leg or
a short inverted V and another V up.

It's all in the charts. (tm)

Ed

Ed's a genius. Thanks for sharing. I hope he's right about a flat leg or a short
inverted V. Few things would make me happier tomorrow.

Greg

Good morning Joe,

I have a question about Advanced Charting. I have taken the course and am
continuing to learn each day. I frequently find that a particular stock looks
good in the advanced chart but fails to meet the basic criteria taught in the
Covered Calls Seminar, which is - the stock should be in the lower 25% of a
rising cycle. With advanced charting, do we have more flexibility in this area
or do we continue to adhere to the basic rule?

I am still new and learning each day and I appreciate all you do, especially for

-52-
the little guy. It can be overwhelming, if you let it, when you are a tiny fish in
an ocean of big money investors.

Thank,

Derrell

Dear Derrell:

You still follow the rules. The advanced charting is giving you better
assurance that the stock is "really" in the proper position to do whatever
management move or position creation you intend.

Hope this helps, if not, let's try again.

Thanks,

Joseph R. Hooper

Mr. Hooper,

I found myself very pleased with Mr. Bassett's presentation this past Tuesday
evening. He was clear with good voice, and a very informative with his
presentation, often with new insights, which helped us to understand various
concepts in a new light.

This is in no way a put down of the presentations of previous presenters but

rather an expression that to say the change to a different presenter from time
to time may bring a bit of freshness and insight to what in many cases is the
same audience. This time even the Power points were slightly different.

-53-
Many thanks to you and Randy

Dpat

Dear Cezanne,

The markets sold off this morning, but have rebounded again with signs of
strength. This is exactly what we've seen many times over the last two
months. I have attached my revised OEX chart. It take the previous red
dotted line and turns it blue (as my, now, primary trend line), and also takes a
solid blue parallel line to the obvious place on the chart to find support (my
previous solid blue line is now a dotted blue line, demoting it in stature). You
might notice that this support has many "touches," giving it strong credibility.
If this line is correct, it is also current support, and we hit it this morning.

So, we could be bouncing right off support, and heading to the top again.
Time will tell. What does this mean for us? It means there are no good
trades, yet, but that could change.

I must say Advanced Charts is warning us to be cautious right here, as the

market could still pick up some momentum to the upside. Earlier, it was a
beautiful picture of the start of doom and destruction, but now it's changed. I'll
update you this afternoon.

Greg

Dear Greg:

All doom & destruction references should be reserved for NON-cross-trading

clients, please... LOL...I do plan on borrowing that phrase from you at mile 20
of my next marathon... It's made me crack up all day!

Cezanne

-54-
Ed,

I just looked at NFLX and it looks like a new sweet spot or roll.

Keith

Hi Keith:

.... no NFLX M1 is too flat and L1 is just above the 50% area of its scale for a
SS and too early to be a Roll. M1 need to bend upward more to be a Roll.
Maybe tomorrow if L6 red crosses through blue. Many things look good but
too early today.

It's all in the charts. (tm)

Ed

Thanks Ed. I thought it looked quite good, particularly with the market being
down today.

Keith

Keith...with a strong RS on a market red day, consider entering the trade

before the market closes. If Thursday is a green day hang on. If Thursday is a
red day, watch for more RS and consider the same thing Friday. Strong
RS with a red market day usually means low volume and not much movement
with the options.

It's all in the charts. (tm)

Ed

-55-
Dear Joseph:

Thanks, Joe. I think your last paragraph answered my question. If I have

$10,000 and use it to buy a stock, I've spent $10,000; if I sell a call in
conjunction with the purchase, I maybe spend $9,600, so I have $400 "cash
flow" even in the initial month. I get the "renting" part that occurs in
subsequent months; it was just the initial month that was throwing me.
Thanks for your help!!

Ken

Dear Ken:

Nope, a little confusion here.

If you spend $10,000 for a stock and sell a call for a 5% return, you will now
have stock worth $10,000 and an additional $500.00 in your cash account.
That is a cash return on your original investment of 5%.

Thanks,

Joseph R. Hooper

Hello Greg,

What do I like? I could go on and on here, but to cover the highlights:

I love the "heads up discussions". Telling us what you are looking for and
might be expecting. I like it both the night before and during the day. It really

-56-
helps me be prepared to act as well as learn your trading philosophy and
decisions. I also like making money, which I am doing.

What I don't like? I actually can't think of anything right now and I am not just
saying that. I will try harder on this question next month, I promise.

My returns:

I have two accounts, one is larger and in Trade Monster and the other is
smaller and in Think or Swim. The larger account is the one that I did not get
in any trades one week because Trade Monster was not able to execute the
trade, one week I was on the cruise and took a 2.44% loss because I had
communication problems and another week all of us did not trade. So that
would be three bad weeks out of the eight-week period that I have traded with
you. I have had better luck in the smaller account, but I think it will even out
over a long period of time.

Here are the results so far, includes all commissions and fees and is the
percentage of gains over my entire account balance, in other words beginning
account balance compared to ending account balance:

8 weeks Larger Account Smaller account Average

Total percent gain 2.99% 6.41% 3.58%
Per week Gain 37% .80% .45%
Projected 52 week gain 9.46% 41.70% 23.30%

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Thanks Greg, hope that is helpful.

David and Family

Thanks, David!

Greg

Dear Joseph:

I plan to start taking your courses next month to primarily learn your Covered
Leaps trading. Since I will be doing a large number of trades, can you tell me
if it’s necessary to list all the trades individually on Schedule D of tax return ....
or is it possible to use one entry with the composite gain/loss for the
brokerage account.

Thank you .....

Don

Dear Don:

Thanks for your questions.

Actually, your trading platform has a button on it that produces the 1099 form
all filled out to attach to your tax form. You can even get it daily if you want.
This features allows you to do not need to keep records for tax purposes.

Thanks,

Joseph R. Hooper

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Hi there Mr. Hooper.

Thanks for your fast respond to my first email. Just want to mentioned to you I
did purchase you book Covered Calls and LEAPS a wealth Option.

Also I attend the 2-hour webinar. It was very intriguing but a same time was
overwhelming information from my point of you. You must know I have no
financial or investing back round. So what I'm saying is I have to start from
scratch. So what I'm asking you is your honest opinion if I should precede and
take the 2 day intensive seminar or else?

The seminar is going to be in my neighborhood in Boston on 4-5. The

introductory seminar is a overview what about you teaching in the intensive
seminar. Do I see these the right way? Also I think money would be well
spend once a student learn the trick of the trade. So Mr. Hooper could you put
these in perspective what would be you recommendation to me. Maybe I just
worry to much because I haven't done anything like these in my life time.
Sincerely and Respectfully yours.

Tibor

Dear Tibor:

No question, you should take the 2-Day Intensive Seminar.

It is the basis for all our techniques.

You can take the Seminar and then you have the ability to attend either on
line or in person as often as you like for no additional charge.

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You will be able to meet other brand new folks if you attend in person and you
will also meet many, many of our clients that continue to attend on a repeated
basis.

The fact that you have no knowledge if the market is good. You don't have to
forget all the crummy stuff the street has been preaching for years.

Thanks,

Joseph R. Hooper

Hi Ed,

May I say thank you, thank you, and thank you. Your explanations were lucid,
detailed and very very helpful.

As usual I am incredibly grateful for all you do and blown away by all of the
research that you have done to bring AC and Platinum to life.

As a side note, profits this week are up to $7500 and $15500 for the month.

If you put this email in the Cow Report please delete my name.

Dario

WOW!!!

What a great new perspective that we received during the CSE Monthly

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Credit Spread Seminar that was taught by Greg Beauchamp! It was fantastic
to get some really valuable insight and some different approaches that will
deliver what CSE always delivers --- Higher Returns!

Thanks Greg for a terrific job on Saturday! I hope that you end up teaching
the class again!

Regards,

Jeffrey

Dear Jeffery:

Thanks for your note and thanks so much for participating by attending the
Credit Spread Seminar.

Yep, Greg is great because he lives what he teaches. He is just not someone
that we "hired" to teach the Seminar, but someone that has dedicate his time
to learning our techniques over many years and actually supports his family
and grows his wealth using CSE techniques.... but then again so have Ed,
Randy, Keener and Jeannie.

Thanks for being a client.

Joseph R. Hooper

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Dear Joseph,

Yesterday was quite refreshing. Greg's energy, enthusiasm and view of the
market are very helpful.

Thank you for giving us the opportunity to succeed by providing superior

training.

Regards,

Vincent

Dean Vin:

Well, thanks you for participating!!

Greg is great and he is great for he has been using out techniques for a long
time, he supports his family with the earnings resulting from his efforts...what
better person to teach others!!

Again, thanks

Joseph R. Hooper

Dear Joseph:

I'm interested in trading with you guys (taking your classes) but the money for
trading would come from my 401k. I know about the taxes and penalties
assessed but this is probably my only avenue. My question is do u advise
against this and is it true that there is a tax deferment for this year where

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these taxes on the 401k could be paid in 2011 or 2012?

Bryan

Dear Bryan:

Thanks for your email and your interest in using our covered call techniques.

Let's just look at your questions:

Question #1: "My question is do u advise against this..."

Answer: If the 401k is you only source of funds, there is nothing wrong with
using that source. Our techniques generate higher returns that can justify the
penalty you might experience in taking some money out of the 401k. Then
you are started.

I would suggest that you open an account with tradeMonster, you do not have
to fund it until you are ready, but you will then be able to use the "virtual"
trading platform on their trading platform. Then "virtual" trade the approx.
$50,000 they give you in virtual dollars and get experienced with our
methods. You then can judge if it will be worth it to you to take money out of
your 401K. The virtual trading is just like the real thing.

Question #2: ".... is it true that there is a tax deferment for this year where
these taxes on the 401k could be paid in 2011 or 2012?"

Answer: I am not an expert in that area, you need to speak to the

administrater of your 401k.

Hope this helps, if not, let's try again.

Thanks,

Joseph R. Hooper

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Hi Greg,

Jen and I and the kiddos are hanging out here in San Antonio taking a family
vacation hanging at the river walk and going to Sea World tomorrow.

I have to admit that this morning I was stressed out at the Disney store in the
river center mall at the river walk. I decided to exit the OEX position around
11 AM. I had to call Trademonster and execute the trade and got a .10-cent
close for a $30 gain on a 60-contract position but I am a happy camper. I
can’t tell you how much relief I had when it was closed.

It is absolutely crazy how this market is reacting to the “fed bail out bonanza
update this week.” I am in the same camp as you as a bear but I will continue
to trust the charts over my intuition.

Anyway I am sorry to ramble. I just wanted to tell you thank you for all that
you are doing for me.

I am 29 years old with a beautiful wife and two great kiddos and my goal for
2011 is to retire on paper. Meaning I will be working next year doing what I
do full time because I want to and not because I have to. I really appreciate
all you are doing. I am learning and applying all you are teaching.

Your biggest fan!

Troy

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Have a great day!

Troy

Dear Troy:

You're doing great! Have a fun trip, and thanks!

Greg

Dear Ed:

SPRD BTO 10/10 STC 11/3 18.5%

ANV BTO 10/6

AVG DOWN 10/25 STC 11/5 21%

UA BTO 10/11 STC 11/5 20%

Patience and management work!

Jim

Dear Robert,

I am, frankly, surprised no one got filled today. With the price action of OEX, I
thought we would all be filled. Oh, well. We'll just try again tomorrow. If the
market is up, we will look to enter the same 575/570 Credit Spread for .10c. I
might even put in a trade before the market opens (I don't normally do that),

-65-
but if I were away from the trading computer, that's what I would do. If, by the
Webinar time, we're not filled, I will talk about it on the Webinar, and talk
through the next alternative.
I will send a Webinar Agenda this evening.

Greg

Dear Greg:

Will you please talk about the criteria you use to determine when you redraw
your trend lines /channels today in the seminar? I can listen the first hour
(skin doctor appt), but I can check the archives later if you don't get to it
before I have to leave. To me -oex has made two higher highs and two
higher lows BUT, that's all I know.

Thanks

Bob

Hi Greg,

The Credit Spread Seminars Saturday and Sunday were fantastic!

Thank you.

I use the Trademonster platform and would appreciate it if you would e-mail
me the eight-page instruction on setting up the credit spreads.

Thanks again,

John

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Hi, John. I had so many requests that Debbie from the CSE office will get this
to you right away.

Glad you attended the seminar.

All the best,

Greg

Dear Rick,

Good morning. Attached is the Q&A of questions not covered in the Webinar,
and others sent to me through the afternoon. Elections are over, and the
results were totally priced in. The elections moved the markets significantly
higher; it just did it over the last 8 weeks, not overnight. This is normal in the
markets. The markets always look forward.

Our OEX trade looks sound today, with OEX up .90c (.17%). Probability is
98%. I'm spending the morning looking at charts, and we should be getting
close to trading our monthly positions. Those of you managing NDX, standby
for the next step hopefully this week.

Greg

Hey Greg,

I just want to say thanks for the great service that you are providing. Greg's
platinum selections are a perfect fit for me. I enjoy the webinars and your
emails are very informative. My trades so far have been super. See you at
the round up.

Peace,

Rick

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Hi Ed, Another great week for me.

11/01 TO 11/05 Return Days

FDO Apr 11 45.00 Call 10.0% 7
APKT May 11 40.00 4.3% 6
AMT Apr 11 50.00 Call 2.9% 19
AKAM May 11 50.00 Call 10.7% 1
CLF Apr 11 65.00 Call 10.1% 3
ADTN May 11 32.00 Call 7.9% 1
ABV Apr 11 140.00 Call 4.2% 10

ROIC 6.2%
ROIC = Return on Invested Capital

Return On Total Account Value 1.6%

Investment account is 60% Cash
40% Invested in Platinum Trades

Thanks

Art

Greg,

I appreciate the job you're doing. I am very satisfied with what I have learned
thus far. My style of trading is very similar to yours (i.e. focus on the charts)
however; I needed to develop a patient approach, which is what I am getting.
I think good communication from you in terms of your plan for the week is

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crucial. This has been very good lately. No problem with changes, etc, just
keeps us in the loop with what you are thinking. Your message that you
would be lying low (re making any more trades) 'til at least Wed PM is a good
example of this. Your occasional "witty" remark is appreciated...lightens
things up a bit. Don't apologize if some don't get it - there are always some in
every group who won't.

I have been getting good fills on trades with Thinkorswim. My average

returns for weeklies in October were 1.8%.

Thanks,

Glenn

Hi Greg,

You are doing an excellent job presenting the Credit Spread Seminars this
weekend. Certainly glad that you are the presenter since you do the Platinum
Seminars.

If you would please, may I have a copy of the instructions of how to set up
Credit Spread trades in Trade Monster.

So far, I have been requesting the 40% on the short leg when I make the
short and long legs of the credit spread at the same time, but this is the only
chance that I get to make this one request before sending the trade. If there
is a way to make this happen for both the long and short legs of the credit
spread, I do not see how to do that. Sure hope the instructions you have
show how to do this.

Thank you for what you are doing for those of us who are just learning to do

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credit spreads productively and safely.

Sandra

Dear Sandra;

Thanks for attending the seminar. I hope it was helpful. If you really liked it,
let Joe and Aaron know, please.

Greg

Dear Ed:

Closed this week

xxxx 10/25/10 bto apr11 21 5.10

11/01/10 stc 5.70
11.7% 5 days

xxxx 10/27/10 bto jan11 50 5.60

11/01/10 stc 6.15
9.8% 4 days

xxxx 10/27/10 bto feb11 10 4.70

11/02/10 stc 5.50
17.0% 4 days

xxxx 10/28/10 bto feb11 48 7.45

11/04/10 stc 8.41
12.9% 5 days

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 xxx 11/03/10 bto mar11 65 10.30
11/05/10 stc 14.00
26.2% 2 days

xxx 11/03/10 bto mar11 30 3.20

11/05/10 stc 3.30
3.0% 2 days

Still open. even money or paper loss

xxx jan11 25

xxxx uncovered stock

xxxx mar11 62.5

xxx covered call nov 65

xxx jan11 27

Thanks Ed,

Bob

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Greg,

Hope this is not too late

A) What I like: The way you break down a chart, your conservative approach,
guidance on allocation strategy, and weekly tidbits on trading psychology

B) What could be done better: I am one of those who also has an 8-5 job,
and so I've missed out on timely entry of a couple of good trades and also
had to sit out a couple of weeks due to business travel. TradeMonster (which
is not my primary trading account) has "auto trade" relationships set up with
several other subscription services. I have had good success with CSE
techniques and CSE is a place that I would trust with an auto trading
relationship. Would it be possible to establish such a relationship between
CSE Platinum Credit Spreads and TradeMonster? There would be no
guarantee of orders getting filled, but at least the orders would get entered at
your timing, both for initial entry and occasional management. That might be
very helpful to guys like me.

C) My average returns: With the exception of having to manage an SPY

trade a few weeks back, the trades I have gotten into are 1.5% returns before
commissions. I broke even on the SPY trade because I <gulp> added a put
spread and turned it into a condor and adjusted capital at risk so that it broke
even at Friday expiration. I know, I know the put spread was against your
rules and I haven't done it since.

Sincerely,

Gary

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Hi Greg:

Regarding the last question, I too am partial to weeklies, and in fact consider
your service a weekly credit spread service and allocates 75% each week to
a single weekly trade and the rest in cash. No monthlies for me, I have been
burned too many times before, esp in a bull market. I hope in your next
webinar you will validate and endorse this approach, so I don’t have angst
allocating such a large portion of my portfolio to this single weekly trade.

Ashok

Dear Joseph:

Channel hits at 545 not at 548

Stephen

Stephen:

...he who lives by the min. chart......loses by the min......

Joseph R. Hooper

just try to learn from the masters

;-)

Steve

-73-
Dear Greg:

Thank you for you hard work.

I have been on edge all day since I am holding SPY 123/124 and OEX
555/560. The SPY come as close as 122.92 before it go back down. I should
have exited it when I got a chance yesterday, but I didn't. I am glad this is
over and we come out with a gain for the week.

I make 4.5% on SPY and 2.5% on OEX after commission for the week.
Considering that Dow climbed 2.9% and S&P 500 rose 3.6% this week and
we are still come out great that is just amazing.

Thanks,

Kaibo

Great job, Kaibo! You're doing great. I am proud of you.

Greg

Dear Ed:

xxx 20-Oct 1-Nov 11 $ 7.00 $ 7.70 10.00%

xxx 6-Oct 1-Nov 24 $ 7.90 $ 8.40 6.33%
xxxx 3-Nov 3-Nov 1 $ 14.69 $ 15.70 6.88%
xxx 4-Nov 4-Nov 1 $ 7.70 $ 8.50 10.39%
xxx 29-Oct 4-Nov 6 $ 8.30 $ 9.30 12.05%
xxx 2-Nov 4-Nov 2 $ 9.20 $ 10.00 8.70%
xxx 4-Nov 5-Nov 1 $ 5.30 $ 5.80 9.43%
xxx 11-Oct 5-Nov 33 $ 11.26 $ 11.60 3.02%

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xxxx 1-Nov 5-Nov 4 $ 6.30 $ 6.70 6.35%

Thanks Ed

Ron

CSE,

Greg Beauchamp did an excellent job of presenting both the Monthly and
Weekly Credit Spread Seminars this weekend. He went into the necessary
amount of detail and explanation required to get a new credit spread trader
started in a very safe and productive manner. As a Platinum subscriber, I
greatly appreciate Greg's presentations, webinars, coaching, and email
updates on every aspect of the trades recommended.
Thank you for adding Greg to your Credit Spread Seminars presenter’s staff.

Sandra

Dear Sandy:

Thanks so much for attending the Credit Spread Seminar this last weekend.
We do appreciate your participation!!

Greg is just great. Of course we are so lucky to have him on our team for he
came up over a number of years like all our clients. He participated, learned
and now is teaching others.

Again, thanks and let us know when we can help you.

Thanks,

Joseph R. Hooper

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Greg,

I have a friendly comment on today.

It would have been nice if we had the three options presented to us last night
instead of when it became a necessity today. I closed out a couple of
minutes before you sent them out following the 69.9% rule. You may have
mentioned these at some other time. If you did, I forgot - my fault. If the
options had been presented last night I would probably have only closed out
1/2 of my position.

Also, it would have been nice to know that the hard and fast rule of 69.9%
changes on Friday. The percentage dropped several times below 69.9 but
went back up quickly. I did wait and close out in a panic when it got down to
65%.

I hold myself partially to blame for closing out all and not 1/2. I have done this
in the past on a couple of occasions. Today I was in a bit of a panic when it
went down to 65% so I didn't think of closing out 1/2.

Today I ended up with a .10 loss instead of a likely worst case of break even
if I had taken other actions.

I know this plan of action will likely be the same for every "close call" in the
future. Therefore, I am going to formalize this for me and have it ready.
Seeing the list of actions in a constant format will help until it is second
nature.

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Thanks for everything you do. I am a big fan of your program. I know credit
spreads will work. My problem in the past (and today) is pulling the trigger
too fast.

Steve

Steve:

If it makes you feel better, I would have prepared to get out if it touched 65%.
Once it moved back up, however, I might have waited, but I have 18 months
experience doing this.

Greg

Dear Joseph:

I enjoyed Sat. seminar very much.

The video & audio were great.
Thanks for all you do.

Bob

Dear Bob:

Thanks you for your comments and thanks for being a client.

Thanks,

Joseph R. Hooper

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Ed,

Please find below my closed COVERED CALL PLATINUM positions for this
week.

xxx 4 days 1.95% 14.6% equivalent monthly return

xxx 7 days 2.1% 8.9% EMR
xxx 23 days 4% 5.2% EMR
xxx 5 days 1.75% 10.5% EMR
xxx 24 days 4.92% 6.15% EMR
xxx 8 days 2.4% 9% EMR

Thanks for all you do.

Rick

Greg:

Thank you for this day and the whole week. You earned your salt and I
appreciate your skill and ability to give us such great leadership and value.
Thank you and have a great weekend.

Regards,

Robin

Thanks, Robin!

Greg

-78-
Ed,

xxxx
10/20/10 BTO Mar 11 50
10/27/10 STC Mar 11 50
49% profit

xxxx
10/25/10 BTO May 11 47
10/27/10 STC May 11 47
15% profit

xxxx
10/13/10 BTO Apr 11 46 strike
11/4/10 STC Apr 11 46 strike
17.8% profit

xxxx
10/20/10 BTO Jun 11 50 strike
11/4/10 STC Jun 11 50 strike
21.4% profit

xxx
10/25/10 BTO Apr 11 50
11/4/10 STC Apr 11 50
22% profit

xxxx
10/26/10 BTO Jun 11 33
11/4/10 STC Jun 11 33
24.3% profit

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xxx
9/29/10 BTO Feb 11 35
11/4/10 STC Feb 11 35
5.3% profit

xxxx
10/15/10 BTO May 11 12.50
11/5/10 STC May 11 12.50
21.2% profit

Michi

Dear Gregg,

Thank you so much for providing this remarkable service. I have been with
you from the beginning and have been very impressed on all levels. Today
you really showed your colors and led us through and out of the woods. I
realized mid-day that win, lose, or draw; I was very fortunate to be associated
with you.

Sincerely,

Richard

Dear Richard:

Thank you, Richard. I am honored.

Greg

-80-
Dear Ed:

% Change in Account Value over Last Week 6.01%

# Closed Trades = 3 xxx xxx xxxx
3 Positions are in management
Average % on closed Trades = 12.59%
Open Positions: xxx xxxx xxx xxx x xxxx xxx xxxx xxxx xxx xxxx xxx xxx xxx

Have a great day!

Bob

Dear Russ,

I taught the Credit Spread seminar this weekend. That was fun, and I
enjoyed meeting many of you.

Here is a look at the week ahead:

The current trend line for OEX ends just above 555 next Friday (chart
attached). OEX is currently just above its long term trend line, so if it
continues to go up (above resistance), we will wait until a trend line is
confirmed. We will analyze this chart tomorrow to ensure our trend line is
correct. If it is, we will look for a trade above 555. We looked today at the
575/570 as the best current alternative, paying 2%. If the chart and trend line
is confirmed, and if the probability proves true, and if we can get the 575/570
for an appropriate return, I suspect we will enter this trade tomorrow (Monday)
morning. We could also do the 575/565, but raising the short strike is
preferred if there is return. We won’t know this until tomorrow (and even then,

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this could change depending on the market).

We are also looking for Monthly trades. We would have preferred to enter
them last week, but there were no appropriate strikes (based on the charts)
that had return. All the stocks that came up on the screener were bad based
on the charts. We’ll see if that changes this week.

Last week, we had significant news each day, especially with the elections
(Tuesday) and the Fed announcement (Wednesday) and the Jobs Report
(Friday). This week is the opposite. No significant planned news
(International Trade Report Wednesday is the most exciting thing planned -
yawn). CSCO reports Wednesday, and that’s usually watched as their CEO,
John Chambers, is well known for his respected comments on the tech
industry. Otherwise, it’s just a charts/positions week, and we’ll be hard at
work.

Futures are down right now. That means absolutely nothing on a Sunday
evening (they mean little in the mornings, but really mean little Sunday night).

I just received an email from this company who got my email address
somehow. It says, "The stock market may crash as soon as tomorrow!"

Thought you'd want to know that. I love the word, "may" as it can apply to
almost everything. "The Cowboys may beat Green Bay on Sunday Night
Football." Both predictions appear to be nuts!

It should be a fun and eventful week.

Cheers,

Greg

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Joe

What is the best way for someone who owns existing stocks to do a call on

them? Where would we look for the information to do that?

Thank you

Bob

Dear Bob:

Thanks for your note.

Just follow the TSS for income rules.

Thanks,

Joseph R. Hooper

Dear Greg:

Regardless of the foreboding email you got Greg – about an “imminent crash”
- I have thoroughly researched very technical indicators which are telling me
otherwise: actually tomorrow the market will go up, down…or possibly
sideways.

;-)

Russ

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Dear Russ:

Absolutely! You and I are on the same page!

Greg

Ed

The ACPS positions closed during the week ending 11/5/2010 are:

Position Days Open Return

xxx 3 Hrs 6.6%

xxx 21 5.6%
xxxx 21 9.2%
xxxx 9.2%
xxx 14 6.3%
xxx 3 Hrs 6.8%
xxxx 2 11.3%
xxx 1 6.2%
xxx 3 10.4%
xxxx 1 5.1%
xxx 31 6.7%
xxx 3 19.9%

Bob

Greg,

I didn't mean to cause you trouble with the PMP spreadsheet. I thought you

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were screening the questions and didn't think you would read mine out loud.
My only intent was to offer to provide the PMP that you "assigned the
responsibility" to the lady with the question as to when it will be updated.

Steve

Dear Steve:

No problem - thanks for sending it. I wish I could screen the questions, but
they just come. No worries.

This is really great, and I appreciate you for sharing it with me.

Greg

Glad to be of help.

BTW, my better half (born and raised in Texas) was watching today and took
offense to your comments about Liz being the "best". I have been telling her
she is the best :-)

Steve

Steve:

Tell her you and I are having a serious conflict - I think "The Lovely" is #1, and
your better half is #2, while you think your better half is #1, and "The Lovely"

-85-
is #2. We've decided to flip for it next time we're together, and then we'll all
know. Until then, they both need to keep working to get (or keep) that #1 title!

Greg

Hey Greg!

Great job presenting the seminar today! For the record, my dad didn't really
say, "wrap it up".... he was on the phone with me and was surprised you were
still talking at 4:23, but he wasn't cutting you off. I'm sure you figured that
though. Also, John Williams and I did NOT sign off the webinar for happy
hour, we just wanted to let you know we were incorporating our happy hour
into the final minutes of the program...we would not check out early! Looking
forward to tomorrow's seminar on weeklies!

Cezanne

Dear Cezanne:

I know you had your first drink around noon Saturday. I wish I would have!

Greg

haha!! No we did not!! I really got alot out of the seminar this weekend.
Looking forward to putting some of my new knowledge to use! We lost the
audio/video portion of the seminar (close to the end of the day) after the
question was asked would you choose a 10 or 5 point spread on the OEX if
the return was 3% for both. John and I were both interested in hearing your
answer, but could never reconnect to the webinar. If you remember the
specific question, please let us know! :) Thanks for presenting this
weekend. You did a great job!

Cezanne

-86-
Cezanne:

Thanks!!!!

To answer, "If you can get .15 on a $5. Spread and also on a $10. Spread,
which would you choose?"

That totally depends on the other factors, so I'll play along...

Let's presume the short strike is well outside the channels and trend lines.

Let's also presume the probability is .96%. Finally, let's presume that it's 20
points away from the current price, and PMP is 3%.

If it's a trade that good, I'll take the higher return with a $5 spread and no
insurance.

Now, let's change the scenario a bit, and make it less conservative. Now
we're outside the trend lines, but only one strike. And now, the probability is
89%, and we're 13 points away from the current price and PMP is 9%. So,
this one is not as good, though still good enough.

In this case, I think I'd take the lower return, with the insurance, as there is a
greater chance I'll need (or want) the insurance.

The bottom line is that every scenario is different, and I would ask myself,
"which one is most conservative." I would go with whichever one is most
conservative, regardless of return. Pass this along to John, please.

Greg

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Dear Ed:

RES @ $24.34, 11/4/10, BTO RES Mar '11, $25 Call @ $2.2626

11/8/10, RES @ $25.49, STC, @ $2.8873

Days in Trade = 4

ROI 27.61%

Thanks,

Meyer

Joe, Aaron and Greg:

It was another excellent presentation today! Capital idea to have Keith on mic,
too. CSE's policy of growing from within with your own best clients is simply
genius!

I have attached copies of two charts for your perusal. The OEX Nov Wk1 555
call bar chart shows 4016 contracts trading midday on Friday at $0.05. I am
guessing that was your platinum email Greg. Brilliant!

The SPY Advance chart has BAD LOW DATA for 10-20-10 of 104.99 as shown
by the super long wick below the candle. The correct low data for that day is
116.87. I would like to see that corrected if possible. I bring up the SPY chart
every day to check on L4, "smart money," which is flat lined on OEX and SPX.
The sight of that long wick just bothers me even though I'm sure that L4 is not
affected. The new channel lines should be a lot narrower with the correct low.

-88-
There is BAD OHLC DATA on the OEX Advanced Chart on 9-20-10 also.
BAD DATA: O 509.91, H 510.30, L 508.21, C 510.30
CORRECT: O 509.37, H 517.42, L 509.37, C 516.34

Many thanks to you all.

Denny

Dear Denny:

Thank for your attending the two Credit Spread Seminars, we do appreciate
your participation!!

Yes, Greg is great, the reason is that, as have all our partners, come up over
many years with our technique.... he has made many suggestions as to
making the technique better based on his actual experience. He supports his
family and grows his wealth using the CSE techniques.

Keith is another super person who is now associated with us and you will see
great additional improvements in our methods as a result. After all, as Keith
presented at the last Master Class Seminar, anyone that makes over a 600%
return using our techniques in a year has some good ideas to improve things.
One might say we are an "open source" educational outfit.

We do appreciate you as a client. Please let us know when you need help,
just call or email.

Greg will address the questions in your email regarding SPY etc. etc.

Thanks,

Joseph R. Hooper

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Sirs,

Why does your covered call screener only show short options and not longs?

Regards

Clifford

Cliff:

? What the hell are you speaking?

Thanks,

Joseph R. Hooper

Dear Joseph:

Can we use the program with E*TRADE, or do we need to use OptonsXpress

Thanks,

Mark

Hello Greg,

Enjoyed the seminar today. The Webcast (sound) went off a couple of times
during the seminar, and I could not hear your answer to a question at the end
of the seminar.

The question was: "If you can get .15 on a $5. spread and also on a $10.

-90-
spread, which would you choose?" Please let me know your thoughts on
this.

Thank you.

Margaret

Hi, Margaret.

That totally depends on the other factors, so I'll play along...

Let's presume the short strike is well outside the channels and trend lines.
Let's also presume the probability is .96%. Finally, let's presume that it's 20
points away from the current price, and PMP is 3%.

If it's a trade that good, I'll take the higher return with a $5 spread and no
insurance.

Now, let's change the scenario a bit, and make it less conservative. Now
we're outside the trend lines, but only one strike. And now, the probability is
89%, and we're 13 points away from the current price and PMP is 9%. So,
this one is not as good, though still good enough.

In this case, I think I'd take the lower return, with the insurance, as there is a
greater chance I'll need (or want) the insurance.

The bottom line is that every scenario is different, and I would ask myself,
"which one is most conservative." I would go with whichever one is most
conservative, regardless of return.

Greg

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Dear Fowler:

You can certainly use E-Trade.

We think tradeMonster is best as to trading platform and commissions but you

can use E-Trade. I still have an old E-Trade accounts with stocks in it that
have been there for many years on which I do conventional covered calls..... I
just hate to change...age I guess.

Thanks,

Joseph R. Hooper

Dear Joseph:

Gregg did a great job as any of us who have seen him at the Masters knew
that he would…!

Thanks,

Fred

Ed,

Another great week on the farm!

Days In Exp Sell

Ticker Enter Exit Strike
Trade Date Buy Price Price Return
10/06/1 11/01/1 Mar $ $ $ 14.2
LFL
0 0 26 11 30.00 2.32 2.65 %
NGD 06/02/1 11/01/1 152 Feb $ $ $ 10.0

-92-
 0 0 11 5.00 2.50 2.75 %
06/02/1 11/02/1 Feb $ $ $ 12.0
NGD
0 0 153 11 5.00 2.50 2.80 %
10/15/1 11/02/1 May $ $ $ 15.2
SPRD
0 0 18 11 12.50 3.30 3.80 %
09/29/1 11/02/1 May $ $ $ 11.4
DPS
0 0 34 11 35.00 3.50 3.90 %
10/26/1 11/03/1 Mar $ $ $ 29.4
F
0 0 8 11 14.00 1.80 2.33 %
10/26/1 11/03/1 Mar $ $ $ 27.8
F
0 0 8 11 14.00 1.80 2.30 %
10/26/1 11/03/1 Mar $ $ $ 30.0
F
0 0 8 11 14.00 1.80 2.34 %
CRO 10/27/1 11/04/1 Jun $ $ $ 10.3
X 0 0 8 11 14.00 2.90 3.20 %
11/04/1 11/04/1 Mar $ $ $ 16.7
CXO
0 0 0 11 14.00 7.80 9.10 %
09/10/1 11/05/1 Mar $ $ $ 13.8
0 0 56 11 17.50 2.90 3.30 %
$
11/04/1 11/05/1 Mar
F 15.0 $ $ 18.2
0 0 11
1 0 1.65 1.95 %

Tomatoes picked YTD >>> 85

Average Return >>> 13.6%
Average # Days >> 15.7

The repeats are not mistakes, I am managing multiple accounts.

Love the service.

GW

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Hi Greg,

I am the one who asked about if the volatility % was updated intraday or end
of day in the CSE screener. I unfortunately wasn’t able to wait around for the
answer. Can you please tell me, thanks?

Regards

David

Dear David:

Intraday. As often as you click refresh. Sorry it took so long to get to the
question.

Thanks,

Greg

Thanks Greg,

It was morning over here in New Zealand, and it was school time!

As well as the CSE screener, I use a high end option program called
OptionVue 6, and it gives me a different future volatility read than that of the
CSE screener, that’s all, and as a matter of interest I have included the
screenshot of the OEX Nov monthly info using both screeners - I'm sure you
agree with me that the difference can be quite important.

Excellent presentation by the way.

Rgds
David

-94-
Thanks, David.

I like the OptionVue6. We will not enter the 565 or 570 as a short at less than
90% probability to not close above. I will check it tomorrow.

Thanks!

Greg

Ed:

I achieved the highest returns on a couple of trades this week since I have
been trading Platinum:

xxx Apr 11 65.00 Call

10/20 BTO @ 2.05
11/4 STC @ 3.20 56.1%

xxxx Feb 11 15.00 Call

11/1 BTO @ 1.70
11/4 STC @ 2.35 38.2% for 3 days

xxx Jun 11 30.00 Call

11/2 BTO @ 3.00
11/3 STC @ 3.40 13.3%

xxxx May 11 55.00 Call

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10/21 BTO @ 2.94
11/4 STC @ 3.30 12.2%

xxx May 11 35.00 Call

10/21 BTO @ 3.50
11/2 STC @ 3.90 11.4%

xxx Apr 11 70.00 Call

11/2 BTO @ 7.20
11/4 STC @ 7.90 9.7%

Thanks,

Jim

Greg,

Thanks for the good webinar today. You were very clear and I only wish I
could attend the weekly tomorrow.

I cannot decide what to do with my 175/170 call credit spread. I have 20 GS

contracts and it looks like my least expensive way out is to let the $10,000 be
taken or in other words hope GS goes down. Going down is not likely as it
closed Friday at $171.07. It would cost $223 to take off each contract and
rolling forward is not 85% and will not generate enough premium to cover the
Get out price. I have another $5,000 for capital to insert but that seems
worthless. Any ideas? I am afraid even doing less than 85% is not good.
Should I buy back the short and expect the long to make money to cover the
buy back? Puts might make more sense because it seems to me that the

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stock is headed up. Advice please.

This is the 4th time in 4 years that I have been caught unable to adjust or
manage. One of the others was also GS big swing on Friday expiration
several months ago.

Thanks,

Jim

Hi, Jim,

First, I'm presuming this is a monthly credit spread that expires November 19.

I've attached two things: a chart, and the option chain that shows the
probability. As a matter of instruction, in the future when probability gets to
69.9%, close the position for a small loss, and you won't have a big loss like
this. GS is at the top of its resistance, and both the line chart and the
advance charts tell us it could continue to go up. It could also go down, but
that's "hope," and we need to protect capital.

You know this, but you have no good alternatives. If you buy back the short,
and the stock goes down, you've only magnified your losses. If you do
nothing, and GS goes up, you lose more. If you do nothing, and GS goes
down, you may be oK. If you get out, and GS goes down, you will be sick. I
have never one time been successful when I bought back the short, and
hoped the long went up. Tried it, but failed 100% of the time.

Here is what I would do, but this is me, and you must make a decision, do it,
and live with it even if it's wrong... I would put a line in the sand. At 10:00
a.m. tomorrow (or a time of your choosing, but not in the first hour of trading),

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if GS is up, I would close it for a loss. Then, I would wait a day, and on
Tuesday would pick my best alternative for management (knowing it may take
a series of trades to get your money back - you're not going to manage this in
one trade to completion - just too big a loss). If, at 10:00 a.m. tomorrow, GS
is down, I would analyze Advance Charts. If they show any signs that GS
could keep going down, I would sit on it. If, however, it appears that GS is
just taking a breather, I would either a) close it for less, or b) put another line
in the sand Tuesday and decide again. For me, when I put a line in the sand,
it takes emotion out of it, and I decide what I will do at that time depending on
one of two circumstances. May not work for you, but it works for me.

The most important thing you can do is make a rational decision, and live with
it. Unfortunately, I (nor anyone else) can make this decision for you.

The only thing in your favor is that you are right at the top of resistance, and it
may (repeat may) bounce off and head down, but I wouldn't count on that.

Hope that helps.

Greg

Dear Greg:

Mark Dannenberg was the instructor for my first two 2-day Intensives
(Covered Calls)--Atlanta and Phoenix. I have attended every one of his Credit
Spread seminars. I am a real fan. Given all of this I want to compliment you
on both Credit Spread seminars this last weekend. I appreciated your sharing
your personal experiences with Credit Spreads. I thought you handled the
questions, in the room and online in an excellent manner. Lots of patience
and lots of good information.

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Thanks for your good work.

Jim
Rockwall (I can see Heath from my front porch)

Dear Jim:

Thanks! I live close to Heath High. Nice to know another Rockwall County
Credit Spread trader.

Greg

Good week!

Dear Greg:

Congratulations for a great week in a tough market! Now for my bad news.
You once said in one of your emails that, for various reasons (mainly
pressure), there are clients who should not be in credit spreads. After careful
consideration these past few weeks, I have come to the conclusion that I
belong in that group. (Being 73 does tend to make one conservative and
more conscience of health issues). I have made very good profits in covered
calls, leaps, momentum positions and your own Greg's greedy returns for
years without a great deal of pressure, but find that I worry far too much with
credit spreads and I can tell it is affecting me in a bad way. I greatly admire
your trading wisdom and insight. Your weekly web sessions and thoughtful
emails have been very professional and have made me a better trader. I will
miss your service, but please unsubscribe me. Best of everything to you and
your fine family.

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Regards,

Duane

Dear Duane:

We'll miss you, and be here if you change your mind. The very best to you in
all your endeavors!

Greg

Dear Ed:

My average return per trade was 6.3%.

The equivalent monthly return was 7.6%.

Chuck S

Dear Greg:

You are a charting savant! I made the conscious decision at the end of last
week to sit out this week with both mid-term elections and QE2 revelations
occurring in the same week. I didn't make or lose money and my blood
pressure stayed mostly normal :)

Looking forward to next week and beyond.

Gary

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Thanks, Gary!

Greg

Greg,

What a week!!!! Thanks so much for the camaraderie.... it is truly appreciated

as I hug myself (no one around) have a restful weekend and trade on!

Tony

Tony

Consider yourself hugged.

Greg

Dear Greg:

Thanks Greg for holding our hand throughout the day. Due to your confident
guidance, I didn’t panic sell, and in fact got out of all contracts at $.05 when it
dipped momentarily in the morning (which made a nice profit).

This is a far cry from where I was at 5 am this morning. On the radio (KRLD)
the business announcer said that the S+P futures were up $22 with huge
strength from Europe and Asia. That meant that OEX was going to gap open
$10 up which would have been over $560! If true and if it held it would mean
we all lost ALL our money! I realized later he was just describing the day

-101-
before, and he mistakenly said “S+P futures”.

So I went from losing everything, to a profit!! Nice!!

Thanks again. Couldn’t have gotten these results without your coaching.

Have a great weekend. I will.

Bob

Bob,

Wow! I would have driven off the road. I'm glad he was wrong!

Greg

Greg,

I didn't mean to cause you trouble with the PMP spreadsheet. I thought you
were screening the questions and didn't think you would read mine out loud.
My only intent was to offer to provide the PMP that you "assigned the
responsibility" to the lady with the question as to when it will be updated.

Steve

Dear Steve:

No problem - thanks for sending it. I wish I could screen the questions, but

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they just come. No worries. This is really great, and I appreciate you for
sharing it with me.

Greg

Hi, Diego.

Let me know if you can see these two pics I'm attaching, and let me know if
this helps.

Greg

On Nov 6, 2010, at 7:58 PM, Diego wrote:

Dear Greg:

First I will like to congratulate you for the wonderful work that you are doing
with the Credit Spread Platinum Selections.

Your dedication and hard work is really appreciated.

My question is the following:

I am a member of the STOCKCHARTS Extra Service .I try all the Chart

Attributes TYPES but I am not getting the one like the one that

You send us.

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I get the CANDLESTICKS,OHCL BARS,LINE and so on but I don’t get the
one like yours.

Could you please tell me the TYPE of Chart Attributes that you use.??

Thank you for your help and the good work.

Best Regards;

Diego

p.s.BY THE WAY I HAVE THE 555/560 OEX AND ENDED WITH A 3%
PROFIT FOR THE WEEK

Dear Ed;

2-Nov xxx BTO JUN 11 $60

4-Nov STC 3.6%
2-Nov xxx BTO MAY 11 $7
5-Nov STO 5.6%
12-Oct xxx BTO APR 11 $45
1-Nov STC 2.4%
7-Oct xxx BTO APR 11 $45
1-Nov STC 2.4%
28-Oct xxxx BTO MAY 11 $18
4-Nov STC 16.6%
4-Nov STC 10.0%

28-Oct xxxx BTO APR 11 $47

1-Nov STC 7.2%

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2-Nov xxx BTO APR 11 $65
4-Nov STC 19.6%

2-Nov xxx BTO MAY 11 $60

4-Nov STC 9.6%

2-Nov xxx BTO JUN 11 $29

2-Nov STC 20.0%

Regards,

Rick

Dear Joseph:

Will Mark be doing any credit spreads seminars?

Bobby

Dear Bobby;

Mark will not be doing any more Credit Seminars for CSE.

Thanks,

Joseph R. Hooper

-105-
Joe, Aaron and Greg,

It was another excellent presentation today! Capital idea to have Keith on mic,
too. CSE's policy of growing from within with your own best clients is simply
genius!

I have attached copies of two charts for your perusal. The OEX Nov Wk1 555
call bar chart shows 4016 contracts trading midday on Friday at $0.05. I am
guessing that was your platinum email Greg. Brilliant!

The SPY Advance chart has BAD LOW DATA for 10-20-10 of 104.99 as shown
by the super long wick below the candle. The correct low data for that day is
116.87. I would like to see that corrected if possible. I bring up the SPY chart
every day to check on L4, "smart money," which is flat lined on OEX and SPX.
The sight of that long wick just bothers me even though I'm sure that L4 is not
affected. The new channel lines should be a lot narrower with the correct low.

There is BAD OHLC DATA on the OEX Advanced Chart on 9-20-10 also.
BAD DATA: O 509.91, H 510.30, L 508.21, C 510.30
CORRECT: O 509.37, H 517.42, L 509.37, C 516.34

Many thanks to you all.

Denny

Thanks, Denny!

I have never thought about printing the option chart to track volume in relation

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to the Platinum trades, but it's a great idea. You're the brilliant one, and I
appreciate you for sharing this. We'll see if we can get the SPY bad print
fixed.

Greg

Dear Ed:

Open: xxx, xxxx, xx, xxx (half the position closed on Fri), xxx, xxxx, xxxx,
xxxx, xxx, xxx, xxxx, xxx, xxxx, xxx, xxx

Closed this week:

xxxx
10-13-10 BTO INTU Apr11 44 calls@6.2
11-1-10 STC INTU Apr11 44 calls@6.5
4.8% in 19 days

xxx
10-26-10 BTO FDO Apr11 43 calls@5.4
11-1-10 STC FDO Apr11 43 calls@5.7
5.5% in 6 days

xxx
11-1-10 BTO HAS Apr11 42.5 calls@5.9
11-2-10 STC HAS Apr11 42.5 calls@6.2

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5.1% in 1 day

xxx
10-11-10 BTO XEC Mar11 65 calls@14.1
11-2-10 STC Mar11 65 calls@16.2
11-2-10 BTC Short NOV 80 calls for 1.50 loss
Net profit on position .6 for 4.3% in 22 days

x
10-26-10 BTO F Jun11 12 calls@3.05
10-28-10 BTO F Jun11 12 calls@2.89
Average cost of all contracts 3.00
11-2-10 STC F Jun11 12 calls@3.15
5% in 7 days

xxx
10-29-10 BTO AMT Apr11 47 calls@6.7
11-4-10 STC AMT Apr11 47 calls@7.1
5.9% in 6 days

x
11-3-10 BTO F Jun11 12 calls@3.68
11-4-10 STC F Jun11 12 calls@4.09
11.1% in 1 day

xxx

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11-1-10 BTO CLF Apr11 62.5 calls@11.00
11-4-10 STC CLF Apr11 62.5 calls@12.42
12.9% in 3 days

xxx
11-3-10 BTO ANV Jun11 20 calls@6.60
11-4-10 BTC ANV Jun11 20 calls@7.67
16.2% in 1 day

xxx
11-4-10 BTO CXO Jun11 65 calls@13.2
11-4-10 STC CXO Jun11 65 calls@13.9
5.3% intraday

xxxx
11-4-10 BTO ADTN May11 30 calls@4.9
11-5-10 STC ADTN May11 30 calls@5.2
6.1% in 1 day

xxx ( could only get 1/2 of my exit order filled so I still have the other half
open)
11-5-10 BTO HLF May11 60 calls@9.3
11-5-10 STC HLF May11 60 calls@9.8
5.4% intraday return on half of my position

Have a good weekend Ed!

-109-
Jim in Chi-Town

Greg,

If Put Spreads are a higher risk (and I agree with you), are you against the
Condor? Do you ever use the Condor? If so...your rules?

Thanks,

Andy

Hey, Andy,

I do not trade Condors, nor any Puts at all.

Greg

Hi Ed.

Here is my Closed Positions report for W/E: 11/05/10

Thank you for another wonderful week. I can hardly wait until next week...

Kind Regards,

Steve J.

-110-
xxx - Apr-11 $27 Call

10/12 BTO $3.164

11/03 STC $3.30

4.30% in 22 days

xxxx - May-11 $19 Call

10/26 BTO $2.45

11/04 STC $2.80

14.29% in 9 days

xxx - Apr-11 $50 Call

10/28 BTO $4.60

11/04 STC $4.90

6.52% in 7 days

xxx - Apr-11 $67.50 Call

11/02 BTO $8.00

-111-
11/02 STC $8.40

5.00% Intraday

Weekly Averages:

7.53% in 9.5 days

Thanks,

Steve

Greg:

Thank you for a great seminar this weekend. When you have a chance,
could you please forward to me the 8 page instructions to enter credit spreads
in trade monster?

Thank you,

Martin

Bravo

Greg for your ‘constant-contact’ style & poise. I am certain that now, no one
is still contemplating why you “stuck to your guns” on the OEX 550 (short) –
you managed the week’s surprises with a firm hand on the rudder.

-112-
Thanks Again,

Russ

Thanks, Russ!

Greg

Dear Greg:

You don't usually hear from me Greg...still have a job and busy at it, but I'm
here and doing well with you. You're right on!

Thanks,

Andy

Dear Ed:

11/4/10, BTO xxxx Feb '11 32 @ $2.9126

11/5/10 STC @ $3.0873

ROI = 5.99%
Days in Trade = 1

All #s > commission.

-113-
Michael

Greg,

…. sorry about the Cowboys!! Hope you did sleep well and I assure you
missed a sour show. I am doing as you suggest and looking at charting sites.
Have found www.freestockcharts.com and it looks good. What do you use
and or recommend. Thanks…. and the questions will be less and less as I
get up to speed.

Ted

Ted:

I use www.stockcharts.com. It costs $36 a month. If you sign up for a free

Virtual Account through ThinkorSwim, you can have access to ProphetCharts
- the best of any in the market.

Hope this helps.

Greg

Dear Ed:

xxx:

-114-
11/3/10 Bought Jan11 62.50 Call @ 8.50
11/4/10 Sold Jan11 62.50 Call @ 10.00 for 17.5% Profit

Thanks,

William

Hi Greg --I would like to he 6 pages on the trade monster platform you
mentioned you mentioned on your last seminar

Thank you

John g

Hi, John,

Debbie at the CSE office will send this to you.

Greg

Greg

Thanks for all the guidance this week. I exited the oex today at a few different
points but still made a small profit, not much but still a profit.

-115-
I wonder how many professional traders got out with a big loss. Anyway
thanks for all the guidance this week. A profit during a week like this is
amazing. Keep up the good work.

Bill

Thanks, Bill,

Greg

Greg,

Thanks for the exciting (and profitable) week!!

Let's hope we don't see many more Dow +220 days while we have our trade
on.

MLM

Greg:

Thanks for all your input today. While I didn't execute the buy backs you

-116-
posted I didn't ignore them either. I decided to watch the charts and, while I
was always ready to pull the trigger (had the orders saved and ready to
release), I decided to hold the spread until close.

Glad I did because, as you know, the spread expired worthless and I saved a
lot of money (though, to be honest, the last 15 minutes gave me a little flutter
as the OEX spike up).

This week has reconfirmed that CONSERVATIVE strike selection is the best
hedge we can have and that the market is unpredictable.

Thanks again for all your hard work. You are doing a great job of
communicating.

Michael

Dear Greg:

You are a trading stud Greg-working full time I never would have handled this
week as clearly, thoughtfully and successfully. I learned a lot-

Thanks.

Steven

Thanks Greg I stuck with your advice and even hung in there till the end

-117-
without closing my Short position. Your earlier assessment was right and your
charts never let us down. Thank you for what you are doing and your
dedication to teaching us to read the charts and try to avoid emotional
decisions. Look forward to next week’s trades.

Gordon

Thank you, Gordon!

Greg

Wow, what a market. The OEX 555 strike remains outside the trend lines,
and the OEX is still within the trend lines (albeit getting close to resistance).
Probability is 89.8% so I'm not panicked, nor looking to make a move. If that
changes, I'll let you know.

I will send a monthly trade if/when I see one that conforms to all the rules.

Greg

morn' Greg -can you send me your chart for today? I am trying to understand
what you mean still within the trend lines-I would have interepted this as
broken through resistance. I am happy about the prob-- just nervous about
the strong market. Thanks for the enlightenment in advance.

Bob

-118-
Bob,

This is the chart I've traded off for weeks now. The solid blue lines is where I
chose to make my decision on the short.

The dotted line is where many had resistance, but the solid line has proven
correct (for now). It could break this resistance, too, but it's a good long-term
trend line. I've sent this chart out two or three times, and it's always had the
solid blue lines. This chart has not changed - same one sent out 10/29 by
me, and is attached.

Greg

Greg:

Thank you I understand now. is there any more creditability given to one over
the other--that is before we know which one is correct? Or do we
just understand that either could be correct and just watch them both? I find
this exciting to watch this unfold the way you said it could. Sometime maybe
you can review for us what happened to our ndx trade

Bob

Bob

I keep both (hence one solid blue, and one dotted blue), but trade off the
highest one (in this case the solid blue, which gave us a 555 short. Now,
unlike NDX, we hope resistance holds. If it shoots through resistance (like

-119-
NDX did) we have to buy it back for a loss. Don't think it will, and probability
confirms for us that it has a low likelihood of doing so.

Greg

Hi Greg,

Could you please tell me what types of computers and how many computers

you use for your trading? I only use one, but I think it would be much more

efficient to use two or three. One for managing the accounts, one for charts

etc. Thanks for the very informative webinar (as usual) today.

Larry

Dear Larry:

I use three computers. I prefer Macs, but use PC's for most trading. I've
attached a picture.

On the left, I have a PC. This is an old, slow, horrible PC that I couldn't sell
for $100. This ONLY displays four charts that I get free from
www.freestockcharts.com, and I display a 1-minute chart on OEX, NDX, SPY
and GS (or GOOG, or PCLN, or whatever stock I'm watching at the time). I
only use this, as it is a quick look for me to see what the market is doing at
any given time.

-120-
On the right, I have a PC. This is, two-years old, and I only trade on this. It
has my brokersXpress page and my live streaming quotes page, which show
me my positions page, and the streaming look at my positions/options/stocks,
etc.

In the middle, I have a Mac, but that's a personal preference.

On it, I have Advanced Charts, CSE options chains,

screeners, emails, spreadsheets, etc. This is the workhorse, and it is a good,
updated, lots of RAM, workhorse machine.

This is the one I need to run lots of stuff at once, and keep lots of stuff open
without crashing.

I have three cheap (Wal-Mart) 21-inch monitors, 3 keyboards and 3 mouses.

I'm sure there is a more efficient way to handle the keyboards, but I'm not
worried about it. There is a more expensive way to all this with one computer
feeding multiple computers, but I like cheap.

Hope this helps.

Greg

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