Executive Newsletter from North of the Blue

North of the Blue

...the key to stock analysis

North of the Blue Executive Newsletter

Issue: # 24

Tuesday March 2, 2010

Celebrate Ethical Wins ... Celebrate Tradition ... Celebrate Life ...

Use North of the Blue, America's key to stock analysis.

Greetings!

This week I got one of those phone calls every company like ours dreams of. A gentleman who is using our trial subscription called to check on the procedure necessary to go live on a paid subscription. I explained the procedure and asked how he liked our system. "It is outstanding!" he said. It seems he got tired of "paper trades" and wanted to put real money into real stocks. He did put a small amount into real stocks. Now he's up $600 in cash in less than two weeks. A very decent return. He wanted to make sure his subscription did not lapse. We made sure it did not.

This could easily be you. Think about it: Making actual cash money during the trial period. Who else helps you to do that?

I want to welcome our new subscribers and extend a serious "Thank You" to those who continue to renew their subscriptions each month. It is for you folks that we started North of the Blue. Your ongoing participation makes all of our work work worthwhile. If you ever feel you want to share constructive suggestions regarding how we can make the system and our newsletters better, please do so. You are the ones we aim to please.

Here's a shortcut to our Buy Watch, Portfolio Holdings and Cash in the Bank listings. Just click here or copy and past the URL below into your web browser:

http://www.northoftheblue.com/stock_status_20100302.html

Did you all get a chance to check on VanceInfo Technologies (VIT)? We sent our our information as soon as we saw it. It climbed past our Blue Moving Average before I could get the first word typed. What a nice surprise. Be cautious for the next few days as profit taking will set in and stock will drop back some.

Please take a look at how we are doing below. Overall we are doing well. We had 13 sales with three losses and 8 winners. That's a 63% accuracy ratio which is good in any market. Our overall gain average is nearly three times that of the major indexes.

Dick Brenneke
March 2, 2010

rjbrenneke@northoftheblue.com

503-233-9452 or 503-926-7567

Portland, Oregon 97202

How are we Doing? Is there really any doubt?

... Where the real profit is

January
North of the Blue	gain +12.5%
Dow Jones Industrial Average	loss -(3.26)%
S&P:	loss -(3.46)%
NASDQ	loss - (4.27)%

North of the Blue 25 sales; 21 gains 4 losses	Accuracy 84%

Web Site Notes

Look at What Members Have at Their Fingertips.

Here is the detail regarding our Change List, Buy Watch List, Current Portfolio Holdings and our Cash in the Bank Portfolio Listing. In addition, you can see how we have done in relation to the major indices just click here .

In addition to all of this you get an Internet page containing all of the Changes, Buy Watch Stocks, Current Portfolio and our Cash in the Bank Portfolio in printable format. This also serves as a handy reference as stocks change from week to week. To see this, just click here.

Expectations

I think that it is important to restate who we are and what we do. North of the Blue is not only the best stock analysis to be found, it is America's Stock Analysis System. Now the legal stuff. Does every stock we pick make money in the first 30 days it is held? No. Our rules tell us the time to buy and the time to sell stocks.

We provide, in our Buy Watch list, stocks that should be on your and our radar screens. We will not buy each of them. Indeed you have seen us discard several when it became apparent that they would not meet our buy rules in the foreseeable future.

When we put a stock into our North of the Blue Portfolio, we expect that the stock will gain within a reasonable amount of time. We cannot predefine "reasonable". If you look at our stocks from last year you will see that we held stocks for as brief a period as two days and as long as six months.

We have made a mistake, I think, in putting our Power W or Stochastic W front and center. We cannot say that such a picture will always gain in the short term. We see it gaining but cannot define how long that will take. What one can see is the angle at which our Buy Watch or Upward Price Strength climbs. The faster the climb the sooner the price gain. What counts is whether or not the gain continues.

In future newsletters I want to talk further about what we can provide and what you expect of us.

We also need to discuss accuracy, among other things.

Educational Meetings

... seminars and one-on-one

Our Wednesday evening seminars have become a highlight in the lives of many of our subscribers. How do we know this? Because they keep coming back and telling us how much money they made using the knowledge they gained at the last meeting. In addition, our subscribers tell us how much we exceed their expectations at these meetings. Significant praise. Obviously, the greatest paise is that they take their new knowledge and one or more of the stocks we discussed and just went out and made a profit for the week. We are at about 15 subscribers and trial subscribers in each Wednesday evening meeting. The time has come to find another evening for a new group. Are you interested? Please tell us which evening would work best for you. There is nothing quite as nice as projecting a North of the Blue Chart onto a wall so that everyone can understand the point being made.

There is no charge for these seminars if you are a paying subscriber or a trial subscriber.

Our seminars now run about one and one-half hour. So far that feels just right.

These scheduled seminars are held every Wednesday evening from 7:00PM to 8:30PM at 11000 SW Barbur Blvd, Ste 100, Portland 97219. if you are someone who has been coming on a regular basis you do not need to reconfirm. We'll hold your space. Please call us if you cannot make it and just leave a message. That opens the space up to someone on our waiting list.

We also schedule meetings during the week. Unfortunately, we cannot accommodate "Drop Ins". If you would like to meet with us on a one on one basis during the day please let us know in advance so that we can find a time that works for you and for us. These slots are beginning to fill so let us know as soon as you can. There is a $25.00 charge per person for these meetings. Unlike the seminars, these meetings are designed to address your questions only. We want to see you use these to cut your learning curve down.

Using a one hour meeting where we go through one or more of our tutorials will pay you big dividends.

Yes, you will have plenty of time to ask your questions in either venue. The goal of these meetings and on our one-on-one daytime meetings is to get you up to the point where you can make prudent, profitable choices based on a thorough understanding of our very simple charts and rules.

As one of our new clients told me yesterday: I certainly will convert my trial subscription to a real paying subscription right away. I have made quite a bit of money on paper but just made $600 by following your rules and investing a very modest amount of money. He did this before this trial subscription ran out. We want to see you do the same thing.

4 X Forbes

... Thumbs up or Thumbs down, you decide.

Last Sunday on the Forbes show their "Analysts" gave us four stocks that are expected to do significantly better than average in the near term. Here they are with our comments on their technical aspects.

ATO, Atmos Energy Corp. Stock broke through several significant Machine Generate Resistance Lines and is poised to go North of the Blue. Stochastics are climbing and there has been several days of solid buying. THUMBS UP.
GSIC, GSI Commerce. Stock broke through our BMA*. Good buying volume recently and very good stochastics. THUMBS UP.
TBT, ProShares Ultrashort Lehman 20+. Stock bounced off a Machine Generated Support Line. It hit that line to the pixel. Some gain in price but not enough for me. Upward Price and High Price Strength Stochastics are both at the bottom of our Red Zone. Very, very heavy selling days over the past two weeks. Nothing here to tempt me. It has a long ways to go. THUMBS DOWN.
ACN, Accenture PLC. Stock is doing a very slow climb back to the BMA. Emphasis on slow. BMA has a flat appearance and seems to be trending down as opposed to the trend that began about one year ago and peaked in early February of this year. Upward Price Strength and High Price Strength are both climbing after leaving our Red Zone. Several solid buying days but most have been well below the average volume. THUMBS DOWN for now.

Forbes is averaging 50% accuracy. Not too good for a powerhouse with all the research and money on earth behind it.

To look at our Master Chart Layout, please click here.

Later this week we will be sending out updated comparisons between North of the Blue and major indices. Wait until you see how our accuracy and gains compare to what else is available.

North of the Blue Stock Charts and Buy/Sell Rules

... Building-Block Strategy

... NOTB is simple, unique and driving gains out of this world

Click on "Master NOTB Chart" below. It links to a summary of North of the Blue's Chart outline. All charts use the same basic structure

Master NOTB Chart.

To look at a table of printable rules, please click here.

North of the Blue is not built on magic dust, mirrors or slight of hand. It is built on one simple rule that allows an investor to control his or her own destiny. It is based on investments in solid stocks and analysis using our easy to understand, proprietary algorithms, charts and rules. Our algorithms and insights allows North of the Blue to give you a unique approach to making money in the stock market.

North of the Blue does not depend on bells, whistles, arrows all over the chart and rulers that you put over a graph. Instead it builds on a single, very simple rule, to generate unbelievable profits. "Unbelievable" that is until you put the money into your bank account.

To work with North of the Blue you need to be kept current with our thinking. So, we keep you advised of our progress either in these weekly newsletters or by Twitter. In depth analysis can be found on our web site. On our web site you will see an example of how we used our basic rule and our building blocks for one stock in 2009 that led to gains ranging from 76% to 214%.Click here to see the how this happened.

Here are our basic rules. We suggest that you clip these and keep them by your computer until they become second nature.

North of the Blue Basic Rule (NOTB BASIC RULE): A stock should be bought when its price is increasing up through our Blue Moving Average (BMA) and sold when its price is declining through our BMA.

But using the BASIC RULE leaves a considerable amount of money on the table. We do not capture this money because we wait for the sell half of the BASIC RULE to complete.

In order to recoup more of the gain without adding any risk we modify our BASIC RULE by adding to it our EARLY SELL RULE. The Early Sell Rule states that a stock should be sold when its High Price Strength and Upward Price Strength drop below 85%. We usually incorporate this as a confirming or auxiliary rule. Here's the complete rule:

North of the Blue Basic Rule with Early Sell: A stock should be bought when its price is increasing up through our Blue Moving Average (BMA) and sold (a) when its price is declining through our BMA OR (b) when its High Price Strength and Upward Price Strength drop below 85% on our green stochastic panel, whichever comes first.

In order to capture price gains before the stock price reaches the North of the Blue Moving Average we introduce a final modification of our BASIC RULE. The rule now provides more accurate (and more risky) early buying as well as early selling. Here's the complete rule:

North of the Blue Basic Rule with Early Buy and Early Sell: A stock should be bought (a) when its price is increasing up through our Blue Moving Average (BMA) OR (b) when its High Price Strength and Upward Price Strength join or nearly join and leave a severely oversold Red Zone, turn sharply up and climb through 50% and it should be sold when its High Price Strength and Upward Price Strength drop below 85%.

Another rule is based solely on the behavior of our Upward Price and High Price Strength for any given stock. This rule, called our STOCHASTIC "W" or POWER "W". It is a stand alone rule that does not depend on our Basic Rule. Here it is:

Stochastic "W" or Power "W": A stock can be safely bought when its Upward Price Strength and High Price Strength join and form a clearly identified "W" under our 15% Stochastic or Price Strength Line. The stock can be bought before the last part of the "W" climbs over 15%. To maximize profit the stock should be bought before the upward Price Strength line reaches 50%.

There is one more stand alone rule that does not depend upon our Basic Rule. As you might expect when programmers and other technocrats get together to codify their rules for technical stock analysis, at least one rule will be based on how computers are used or programmed. Don't be disappointed because we left this until last. The rule is our MACHINE TRADING RULE. Here is the rule in a nutshell.

MACHINE TRADING RULE: A stock may be safely bought when it passes through one of our green, horizontal lines going up (Resistance Lines) OR when it rebounds up from one of these lines (Support Lines). The Machine Trading name comes from the points at which institutional investors have their computers set to buy and sell. If you look at how prices behave around these points you will see that these are the points that major market drivers come into play. More on this in a later newsletter.

For an in depth analysis please click here to visit our web site.

Changes

... buys, sells and moves since our February 23, 2010 Executive Newsletter.

At March 2, 2010

Change List March 2, 2010

*BMA = Blue Moving Average
Symbol	Stock	Actions
REASONING: What rules were applied, why and when.
ABX	Barrick Gold	Action: BW: 1/23/10; buy $38.99
REASONING: Watch for rebound off of Support Level. 3/2/10 Good rebound off support level. Stock broke through BMA; Upward Price and High Price Strength stochastics are moving up; stock has had several days of buy volume.
ATO	Atmos Energy Corp	Action: Buy: 3/2/10 as stock goes North of the Blue; buy near close $28.05
REASONING: Stock broke through several major Machine Generated Resistance Lines and is poised to go North of the Blue. Stochastics are climbing and there have been several days of heavy buying. The boost by Forbes on the 1st of March may move the stock up.
ATMOS	Atmos Energy Corp	Action: Buy: 3/2/10 as stock goes North of the Blue;
REASONING: Used Basic Rule. Stock should cross our BMA* on 3/2/10. Both the Upward Price and High Price Strength lines have separated but are climbing well. I would like to see them join before making a major commitment. Note the solid buy volume on the preceding days.
GCI	Gannett Inc.	Action: BW: 31/2/10 at $15.95
REASONING: GCI broke through our BMA* on March 1 at $15.22. If the Upward Price and High Price Strength lines join and continue to 85% this could be a winner. In fact, three are a number of very good reasons to buy now. It looks like it is resuming the trend which started in July of 2009.
GG	Goldcorp Inc New	Action: BW: 1/23/10; 3/2 buy 38.65
REASONING: Watch for rebound off of Support Level. Price touched the BMA*. Good rebound. Watch to see if the Upward Price Strength and High Price Strength both point up in the next day or so. .Stock rebounds off Machine Generated Support Level and broke through the BMA on 3.2.10.
GLD	SPDR Gold Trust	Action: BW: 1/23/10; buy $110.15
REASONING: Watch for rebound off of Support Level. 3/2 good rebound off support level and finally a breakthrough of the BMA.
GOLD	Rangold Resources Ltd.	Action: BW: 1/23/103/2 buy $74.50
REASONING: Watch for rebound off of Support Level. Price touched the BMA*. Good rebound. Watch to see if the Upward Price Strength and High Price Strength both point up in the next day or so. 3/2 great bounce off Machine Generate Support Level and poised to go through BMA. I know that this is early but all gold stocks and gold metal are going up.
GSIC	GSI Commerce Inc.	Action:: Buy 3/1 at $25.62.
REASONING: GSI bounced off a very decent Machine Generated Support Level and climbed through our BMA*. Both our High Price Strength and Upward Price Strength have joined and are heading directly for the 85% Stochastic level with no apparent hesitation. Discounting one day of serious selling, we have had many days of average and above average buying.
INTC	Intel CP	Action:: BW: 2/7; buy 3/2 $21.00
REASONING: Intel is beginning to show serious strength. It broke through our Red Zone with ease and is now beginning to climb toward 50%. We will have to wait until the Strength lines join and the price to work its way through the numerous Resistance Lines between the current price and our BMA*. Keep this one on your radar screen. Everything I see and read tells me that silicon chip makers (That's what they make computer chips out of.) are very, very busy. 3/2 If you have any money left after buying the gold stocks look hard at Intel. I think it is poised to generate another trend line like the one we saw from July through November.
TLAB	Tellabs, Inc.	Action: Bought 2/16/10 at open at $6.74; put a stop on this one. HOLD WITH CLOSE STOP. 3/2/10$ 7.16 HOLD and keep stop. GAIN 6.23%
I bought TLAB a little late but believe I can still participate in the growth based on its well established trend line.
VIT	VanceInfo Technologies, Inc.	Action: Bought 2/26/10 at open at $19.36; stop is at 5%; HOLD 3/2 price $21.28, GAIN 9.91% in 3 trading days. HOLD
VIT climbed through our BMA* with no hesitation. Before making this jump it bounced off of a heavy Machine Generated Support Level. On February 5 VIT bounced of a very well defined Machine Generated Support Level and began to climb. At the same time it broke out of our Red Zone and began a strong climb toward 85% with both the Upward Price and High Price Strength. This has all of the signs of a winner.
WX	Wuxi Pharmatech Cayman Inc	Action: B-W 3/2/10 at $16.73.
WX is once again trying to climb through a Machine Generated Resistance Level. It has not done well at this in the recent past. But, this time the Upward Price and High Price Strength are growing closer together and both are climbing at the similar rates. Unfortunately, volume remains at or below average. Definitely a wait and see stock.

Buy-Watch List March 2, 2010
Symbol	Company	Actions
APOL	Apollo Group Inc. CL A	Action: BW:1/23/10
REASONING: Watch for rebound off of Support Level. Still not through the BMA.
ATMOS	Atmos Energy Corp	Action: Buy: 3/2/10 as stock goes North of the Blue;
REASONING: Used Basic Rule. Stock should cross our BMA* on 3/2/10. Both the Upward Price and High Price Strength lines have separated but are climbing well. I would like to see them join before making a major commitment. Note the solid buy volume on the preceding days.
CSCO	Cisco Systems	Action Buy: 2/1 at open $22.65; hold with stops; 2/23 sold at $24.20 gain 6.84%. This may be eligible for another buy.
REASONING: Cisco has been one of the most active stocks on the NASDAQ Exchange over the past ten days. It moved out of the Red Zone while forming a near perfect "W". I say "near perfect". It is a good sign although it could be better. But, the High Price Strength and Upward Price Strength joined an dare now climbing in lockstep. This stock is poised to go North of the Blue with real strength. We are looking at a serious buy in the next day or so. Stock climbed back through the BMA and ma be in line for another buy.
WX	Wuxi Pharmatech Cayman Inc	Action: B-W 3/2/10 at $16.73.
WX is once again trying to climb through a Machine Generated Resistance Level. It has not done well at this in the recent past. But, this time the Upward Price and High Price Strength are growing closer together and both are climbing at the similar rates. Unfortunately, volume remains at or below average. Definitely a wait and see stock.

Also check "DickPicks" in your "DicksPicks"List in our program and NOTB-BUY-WATCH list.

Current Portfolio Holdings

March 2, 2010

Symbol	Company	Actions
ABX	Barrick Gold	Action: BW: 1/23/10buy $38.99
REASONING: Watch for rebound off of Support Level. 3/2/10 Good rebound off support level. Stock broke through BMA; Upward Price and High Price Strength stochastics are moving up; stock has had several days of buy volume.
ATO	Atmos Energy Corp	Action: Buy: 3/2/10 as stock goes North of the Blue; buy near close $28.05
REASONING: Stock broke through several major Machine Generated Resistance Lines and is poised to go North of the Blue. Stochastics are climbing and there have been several days of heavy buying. The boost by Forbes on the 1st of March may move the stock up.
CAAS	China Automotive Systems	Action: Bought 2/16/10 at $17.00; 2/23 up 8.2%. Hold but consider a stop. 3/2 $23.90 GAIN 40.99%; keep the stop loss.
A perfect Stochastic-W formed last week. Bryan Butcher found this one. Kudos Bryan. Well worth a buy this Tuesday. I would suggest caution since the "W" appears to be flattening out. However, buying is still very good and the price is still rising. Stochastic looks like it will continue to climb.
COHR	Coherent, Inc.	Action Buy: 2/1/10 at $29.66; 2/16 hold still well North of the Blue;2/23 hold
REASONING: Used Basic Rule. Stock crossed the BMA* on 1/29/10. We could have bought at that point. However, I waited until the Upward Price and High Price Strength lines joined, left the stochastic Red Zone and climbed through the 85% line. This could have been bought on !/30 but I decided to wait and see if the Upward and High Price Strength lines would settle above 85%.
GCI	Gannett Inc.	Action: BW: 31/2/10 at $15.95
REASONING: GCI broke through our BMA* on March 1 at $15.22. If the Upward Price and High Price Strength lines join and continue to 85% this could be a winner. In fact, three are a number of very good reasons to buy now. It looks like it is resuming the trend which started in July of 2009.
GG	Goldcorp Inc New	Action: BW: 1/23/10; 3/2 buy $38.65
REASONING: Watch for rebound off of Support Level. Price touched the BMA*. Good rebound. Watch to see if the Upward Price Strength and High Price Strength both point up in the next day or so. .Stock rebounds off Machine Generated Support Level and broke through the BMA on 3.2.10. Good rebound and finally a breakthrough of BMA.
GLD	SPDR Gold Trust	Action: BW: 1/23/10; buy $110.15
REASONING: Watch for rebound off of Support Level. 3/2 good rebound off support level and finally a breakthrough of the BMA.
GOLD	Rangold Resources Ltd.	Action: BW: 1/23/10; 3/2 buy $74.50
REASONING: Watch for rebound off of Support Level. Price touched the BMA*. Good rebound. Watch to see if the Upward Price Strength and High Price Strength both point up in the next day or so. 3/2 great bounce off Machine Generate Support Level and poised to go through BMA. I know that this is early but all gold stocks and gold metal are going up.
GSIC	GSI Commerce.	Action: Bought 3/1/10 at open $25.75. 3/2 price $26.00 Gain 1% in one day. HOLD A Forbes suggestion.
A perfect Stochastic-W formed last week. Bryan Butcher found this one. It looks like Ryan pulled off the "hat trick". Very nice going.
HMIN	Home Inns Hotels Management	Action: Bought 2/16/10 at open $31.61; hold 2/23
A perfect Stochastic-W formed last week. Bryan Butcher found this one. It looks like Ryan pulled off the "hat trick". Very nice going.
IEF	- iShares TR; Lehman 7 - 10 year Treasury Bonds	Action: Buy: 1/22/10 at $90.46; watch for break through Resistance Level. Hold 2/23
REASONING: Buy:Basic Rule with Early Buy. Stock moved rapidly out of Stochastic Red Zone then jumped very quickly tot 50%. Not surprising since bonds are a traditional hedge in troubled times such as we have now. Here you get the equity gain as well as the interest But watch to see if Strength lines continue to climb. Upward Price Strength is lagging. (Note: interest is paid if you hold the bond for at least one quarter.)
INTC	Intel CP	Action:: BW: 2/7; buy 3/2 $21.00
REASONING: Intel is beginning to show serious strength. It broke through our Red Zone with ease and is now beginning to climb toward 50%. We will have to wait until the Strength lines join and the price to work its way through the numerous Resistance Lines between the current price and our BMA*. Keep this one on your radar screen. Everything I see and read tells me that silicon chip makers (That's what they make computer chips out of.) are very, very busy. 3/2 If you have any money left after buying the gold stocks look hard at Intel. I think it is poised to generate another trend line like the one we saw from July through November.
NEWP	Newport CP	Action: Buy at $8.67; 2/23 hold
REASONING: This stock has shown significant buying volume over the past week or so. Upward Price Strength and High Price Strength have joined forces and are continuing to climb. However, we need to see them pass the 85% marker before this becomes a serious contender. As you can see, the price line is poised to pass through our BMA. 2/2 stock rebounded off Machine Generated Support Line; climbed through BMA.
SHY	iShares TR Lehman 1 - 3 Year Treasury Bonds	Action: Buy: 1/22/10 at $83.52; HOLD 2/23
REASONING: Buy:Basic Rule with Early Buy. Stock moved rapidly out of Stochastic Red Zone then jumped very quickly past 50%. Not surprising since bonds are a traditional hedge in troubled times such as we have now. Here you get the equity gain as well as the interest (Note: interest is paid if you hold the bond for at least one quarter.)
TLAB	Tellabs, Inc.	Action: Bought 2/16/10 at open at $6.70; 3/2 $7.16 gain 6.87%
I bought TLAB a little late but believe I can still participate in the growth based on its well established trend line.
TLT	iShares TR Lehman 20+ Year Treasury Bonds	Action: Buy:: 1/22/10 at $91.86 hold with close stop 2/23
REASONING: Basic Rule with Early Buy. Stock moved rapidly out of Stochastic Red Zone then jumped very quickly tot 50%. Not surprising since bonds are a traditional hedge in troubled times such as we have now. Here you get the equity gain as well as the interest But watch to see if Strength lines continue to climb. (Note: interest is paid if you hold the bond for at least one quarter.)
VIT	VanceInfo Technologies, Inc.	Action: Bought 2/26/10 at open at $19.36; stop is at 5%; HOLD 3/2 price $21.28, GAIN 9.91% in 3 trading days. HOLD
VIT climbed through our BMA* with no hesitation. Before making this jump it bounced off of a heavy Machine Generated Support Level. On February 5 VIT bounced of a very well defined Machine Generated Support Level and began to climb. At the same time it broke out of our Red Zone and began a strong climb toward 85% with both the Upward Price and High Price Strength. This has all of the signs of a winner.
VPRT	VistaPrint NV Ord The Netherlands	Action BW:1/23/10; 2/26 buy $57.65; 3/2 $61 GAIN 5.81%
REASONING: Stock failed to cross BMA; Stochastics fell off sharply. Upward Price Strength and High Price Strength are both climbing strongly and holding above 85%, I waited to see if they would hold above 85%.