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Monthly Cash Machine SEPTEMBER WATCH LIST - 9-6-06

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MONTHLY CASH MACHINE

9/06/07

ISSUE

PRICE

STOCK GOES ON

WATCH LIST IF:

WATCH LIST PRICE

^SOXX

437.12

ABOVE

422.50

SBUX

31.50

ABOVE

31.50

IR

38.66

ABOVE

38.50

RYL

40.05

ABOVE

42.50

GPRO

46.87

ABOVE

52.50

LCAV

42.51

ABOVE

43.50

WBMD

37.37

ABOVE

38.50

JCP

64.53

BELOW

62.50

AAPL

70.03

BELOW

66.00

SNDK

54.71

BELOW

52.00

^XAU

150.17

BELOW

147.00

WATCH LIST COMMENTARY: Dow off over 67.00, NASDAQ down over 35.

WBMD, LCAV, SBUX all come off the WATCH LIST, leaving only IR and the volatile ^SOXX semiconductor index

IR barely remains on the WATCH LIST with close at $38.66 only $0.16 over the WATCH LIST PRICE of $38.50.

^SOXX finally goes on the retracement from its previous August high. ^SOXX drops over $14.00 to close at $437.12 still on the WATCH LIST, but big drops takes the index out of the money by $2.83. We still need to look closely at this issue. Hopefully looking for some follow through on the down side regarding the 50% retracement with this issue. If this index is off again tomorrow, we might consider putting in a stop on the upside as well as selling an out of the money put credit spread to reduce our exposure on the call side. ( This can be done for no extra margin requirement if you have the right broker.). This is the key position we will watch tomorrow. If this position is down, look for a possible put credit spread position to be added. Tomorrow's action will be important, there is a chance we might act during mid- day.

Expect this month to have a lot of volatility.

CURRENT ISSUES ON THE WATCH LIST - 9-06-06

^SOXX

IR

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