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North of the Blue, America's Stock Analysis System
Executive Newsletter
 
Executive Newsletter  Tuesday March 23, 2010
In This Issue
Select Sectors of the Week
Select Stocks of the Week
Education
Timing
Rules and Charts
January Comparisons
February Coomparisons
YTD Comparisons
Buy Watch List
Current Portfolio
Cash in the Bank Portfolio
Cash in the Bank Detail Portfolio
Web Site Portfolio locations
Channel Charting
Greetings!
 
I am so pleased with the very encouraging reports I hear from our users.  It seems that everyone wants to tell me how well they have done.  I am so very pleased, as is my Marketing Partner, Jim Petersen.  The point of North of the Blue is to provide users with the assistance they need to do well in the market.  Specifically our clients want to know what rules they should follow to earn money in the market.
 
Wait until you see our next step.  It may be available as early as our Wednesday evening meeting.  We are going to provide you with score sheets that allow to better determine when a stock meets our buy and our sell rules.  Reception to this has been fantastic.  Credit Jim Pedersen with the idea.  Many thanks to Jim.
 
How would you feel if you could evaluate a stock with the ability to apply each rule and total the scores?  This will absolutely knock your socks off.  More later.
 
The best news of all:  our accuracy rate remains over 86%.  Take that to the bank.
 
Sincerely,
 

Richard Brenneke 
 
Where we are ...
  ... how to reach us.
 
 

People

Richard Brenneke:  rjbrenneke@northoftheblue.com

 
 
Ryan Butcher:  ryan@northoftheblue.com
 
Telephones:
General Office:  (503) 233-9452
Support:  (503) 446-9390
 
Address, meetings by appointment:
11000 SW Barbur Blvd, Ste 100
Portland, Oregon 97219
 
Mail:
North of the Blue 
P.O. Box 569
Lake Oswego, Oregon  97034
 
North of the Blue is a dba owned by Custom Computer Programming, LLC.  Billings for North of the Blue come from Custom Computer Programming, LLC
 
 
The Picture of Profit Sectors of the Week
  
We have two sectors competing for the sector of the week:  Pharmaceuticals and semi-conductors.  Look at PPH (Pharmaceutical Holders Trust) and USD (Ultra Semiconductor ProShares).  We are deeper into USD and just starting PPH. Both meet the tests for being sound buys.  We missed the North of the blue buy time for USD can certainly use the Channel Rule to justify the purchase.
 
 Pharmaceuticals are an obvious bet.  Using both money and words, "Big Pharma" strongly backed the Health Care Bill that passed last weekend.  That we should see a strong take off when the bill is signed is not too surprising. 
 
Semiconductors deserves a word of explanation.  My wife works in the semiconductor industry.  She has spent the last 18 years learning how that world works.  Last year folks at here company, Siltronic (formerly Walker Siltronic) spent the first six months of last year giving people furloughs and mandatory time off.  No so this year.  Now employees are facing mandatory overtime.  Virtually everyone furloughed last year has been rehired.  Unfortunately, Siltronic stock cannot be bought in the United States.
 
 
 
The Picture of Profit Stocks of the Week
 
I normally focus on a single stock and build my observations on it.  This week I have found several stocks that deserve special attention.
 
PPH strikes me not only as the Sector of the Week but also the Stock of the Week.  Right alongside of it I found USD, which is a little out in front of us, but still qualifies as a buy using our Channel Rule.  Look carefully at the Channel Rule and you will see why it applies.  The top of the  Channel is shown by the light black or red  line above the black or red price line.  Using his rule allows one to participate in solid stock growth even if we don't get in at the very start when a stock crosses the blue heading north.
 
Two additional stocks merit serious attention:  TXN (Texas Instruments), very solid Upward Price Strength and High Price Strength.  AMAT (Applied Materials Inc.) with two very strong strength indicators offers another place to go.  MRVL  (Marvell Technology Group) is yet one more place to put those growth dollars.  Both High Priced and Upward Price Strength show serious growth.  Finally, it is not too late to look carefully at MU (Micron Tech).
 
Before we leave this subject, let us take a quick look at Big Pharma.  PFE (Pfizer) is seriously worth consideration RIGHT NOW. ABT (Abbott Labs) should be looked at right now.  With LLY (Eli Lilly) we are a bit behind the power curve, but the stock is worth serious consideration. FRX (Forest Labs) is another which jump started late last week and is still a buy today.  ZMH (Zimmer Holdings, Inc.).  is one I am watching carefully.
The Picture of Profit Education
  ... seminars and one-on-one sessions
 
Our Wednesday evening seminars have become a highlight in our lives and in the lives of many of our subscribers.  We know this because people keep coming back.  When they do they bring new and different questions.  After several months of use many come to tell us about their gains and how they adapted the rules to their personal situations.
 
We are making a change.  We will have two meeting groups and they will meet on alternate Wednesdays.  Our original group will meet on the 24th and every other Wednesday after that.  Our new group will meet on the 31st and every other Wednesday after that.
 
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 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 per hour 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 last week:  "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.  The gain was for less than a week."  He did this before this trial subscription ran out.  We want to see you do the same thing.
 
 
Timing
 
We had an extremely appropriate demonstration of this recently.  On February 26 we sent out a special mailing explaining that VanceInfoTechnologies (VIT) was available at about $19.00.  What happened to generate our interest?  VIT had gone North of the Blue just that day, February 26.  Both the Upward Price Strength and the High Price Strength indicators were rising rapidly even though they had separated somewhat.  The separation was minimal but the upward climb was at a significant rate.  Finally, the stock had seen nearly two weeks of virtually uninterrupted Buy Days, i.e. more buying than selling volume which produces the blue line.  Finally, the stock had rested for some time on two Machine Generated Support Levels.
 
Life in the stock market is really all about timing and the ability to use our rules to produce repeatable results.  Are we always right?  Of course not. 
 
How good are we?  I think of our stock selections in terms of baseball, the great American pastime.  Hitters who regularly come through with hits that put them on base 33% of the time are earning millions of dollars every year.  North of the Blue has hit 86% of our selections this year out of the park.  86%!  Every stock analysis programs points to this and that winner.  But they don't want to get pinned down to specifics when you ask how many of their stocks are winners.  Did you ever notice that? 
 
Several of our clients called a week after our alert on VanceInfo Technologies (VIT) to see whether to see whether it was still a good buy.  Unfortunately, all we could say was "We don't know."  We don't have a specific rule that deals with stocks after they have started a significant gain.  We are refining our Channel Analysis rule that will address this but it needs more work.  Stay tuned for this.
 
You may want to know the point of all this.  Before we suggested that VIT had run its course and met our sell criterion it had climbed 23.19%.   That's 46% a month or over 600% per year if you bought when the rules said "Buy".
 
What about buying a week or two late?  This is terra incognita.  In other words, we just don't know. 
 
Rules
 
So let's look at the rules once again.  Please go to the bottom to see our newest rule the Channel Trading Rule.
 
 North of the Blue Stock Charts and Buy/Sell Rules
... Building-Block Strategy
... NOTB is simple, unique and driving gains  out of this world
 
The Picture of Profit
 
 
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. 
 
Adding a rule, The Channel Rule.  Click here for a well written explanation.
 
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. To look at the first explanation of our Channel Trading Rule, please click here.
 
 

January Comparisons

North of the Blue gain 12.5%
Dow Jones Industrial Average loss -3.48%
S&P loss -3.83%
NASDQ loss - 3.83%
   
North of the Blue Accuracy gain 77%

February Comparisons

North of the Blue gain 15.5%
Dow Jones Industrial Average gain 2.54%
S&P: gain 3.82%
NASDQ gain 2.84%
   
North of the Blue Accuracy 79%

Year to Date Comparisons

North of the Blue (including stocks held as well as those positions closed out). gain 17.35%
Dow Jones Industrial Average gain 2.67%
S&P gain 3.13%
NASDQ gain 3.01%
   
3/23/2010 North of the Blue Accuracy Remains at based on our Cash in the Bank Portfolio, i.e. realized, actual gains ........ 87.66%

Buy-Watch List March 23, 2010

 
 Symbol Company Actions
ALC
 Alcon Inc. Action: BW:  3/16 at $161.69; Small climb but no reason to buy just yet. Potential gain at this price very low.
REASONING: Worth watching but too expensive to buy until posibility of a major price gain.
AMGN Amgen Action: B-W 3/17watch for now as stock is running in a very narrow band. If Power moves up we shold see a breakout. Watch for the break through of the Machine Generated Resistance Level.
Amgen bounced of a Machine Generated Support Line, climbed North of the Blue appears to be climbing over the BMA. If this continues and it looks like the price will break through the Machine Generated Resistance Line this one will meet our tests in the North of the Blue Rule and be a buy.
CAGC China Agritech Action: Sell on 3/15. Possible buy soon 3/18.
If you bought CAGC some time ago, it was a clear sell on 3/15 when the price rolled over and started down and the Upward Price Strength and High Price Strength rolled over and fell below 85%. It is coming back to BUY status on 3/18 when Channel starts up. But, watch the Power values. At present they do not support a buy. Volume would also need to increase with more buying than selling. Buckeye Partners has gone from a watch to a BUY because it meets the buy tests set out in the Action panel above.
PWE Pen West Energy Action: B-W 3/17 still a decent buy
PWE but watch to see that the Power lines remain over 85% and that there is a channel line above the price line.
 
Also check "DickPicks" in your "DicksPicks"List of our program and NOTB-BUY-WATCH list.
 
Current Portfolio Holdings
March 23, 2010
Symbol Company Actions
TXN Texas Instruments Inc. Action: 3/22 worth a buy at $24.75
Watch TXN to see that it stays above the Resistance Line and that the the black Upward Price Strength continues to push toward 85% and and does not hook and go flat or seperate further.
AMED Amedsys Inc. Action: BW:  3/12 at $57.54 low. If it rebounds and if the volume goes to blue and remains near or over 100% and the Upward and High Price Strength continue up this would meet all of our tests for buying. 3/12 rebound came at 56.78. Meets buy tests at $56.78. 3/23 $62 hold. gain 5.67% in twlo weeks.
REASONING: Meets buy tests subject to Action notes. Watch for blue buying volume.
COHR
 Coherent, Inc. Action Buy: 2/1/10 at $29.66; 2/16 hold still well North of the Blue;2/23 hold; 3/9 32.80 gain 10.58%; 3/18 HOLDING with a gain of 11.5% 3/23 33.01 gain 11.29%
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%.
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.3/2 buy 3/2 $24.66. Gain 6.83%. 3/18 HOLD at $26.42 with a gain of 16.64%. 3/23 26.75 gain 18.1%
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. Cicso went back through the Blue Moving Average.
FRX Forrest Labs Action: 3/22 a buy at $ 31.00.
3/22 FRX broke through the Resistance Lines. Both the Upward and High Price Strengh lines show a strong upward trend.
GCI
Gannett Inc. Action: BW: 31/2/10 at $15.95; 3/9 16.00 gain 3.1%. 3/18 $16.84 hold gain 5.58% 3/23 16.80 gain 5.3% in 2 weeks.
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.
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. 3/9 hold 26.90 gain 4.46%; 3/18 HOLD with a gain of 10.05% 3/23 28.01 gain 8.76%
A perfect Stochastic-W formed some time ago. Ryan Butcher found this one. It looks like Ryan pulled off the "hat trick". Very nice going.
HLF Herbalife Action: 3./1/10 at 39.75 a solid buy. 3/18 3/23 44.50 gain 11.25%
HLF shows a slowing climb as the Upward Price Strength Line climbs toward 85%. Not a perfect buy at this price but worth seriousl considration if Strength lines stay above 85% and volume remains in the blue.
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; 3.9 21.20 hold gain 1%; 3/18 HOLD with a gain of 6.14%. 3/23 22.75 gain 8.33%
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.
MRVL Marvell Technology Group Action: 3/22 a buy at $ 20.00
3/22 Watch MRVL to see that both the Upward and High Price Strengh lines continue to demonstrate a strong upward trend.
MRX Medicis Pharmaceutical Action: A definite BUY on 3/12 at 24.70 when it went North of the BMA Buy 3/23 26.55 gain 7.5%
Watch MRX to see that the black Upward Price Strength continues to push toward 85% and that neither hooks or goes flat or that they seperate further. go flat.
MU Micron Tech Action: 3/23 worth a buy at $10.54.
Watch MU to see that the black Upward Price Strength continues to push toward 85% and that neither hooks or goes flat or that they seperate further. go flat.
NEWP
 Newport CP Action: Buy at $8.67; 2/23 hold 3/9 11.41 hold gain 31.60%; 3/18 HOLD with a gain of 38.29%. 3/23 11.94 gain 37.71%
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*.
PFE Pfizer, Inc. Action: 3/23 worth a buy at $17.54.
Watch PFE to see that the black Upward Price Strength continues to push toward 85% and that neither hooks or goes flat or that they seperate further. go flat. Now it qualifies as an early buy so watch with that in mind.
PPH Pharacetuical Holders Trust Action: 3/22 worth a buy at $66.40
Watch PFE to see that the black Upward Price Strength continues to push toward 85% and that neither hooks or goes flat or that they seperate further. go flat or seperate further.
SHY
  iShares TR Lehman 1 - 3 Year Treasury Bonds Action: Buy: 1/22/10 at $83.52; HOLD 2/23; 3/9
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%; 3/9 7.45 gain 11.19% ; 3/18 HOLD with a gain of 17.13%. 3/23 7.66 gain 14.32%
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; 3/18 HOLD with a gain
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.)
TXN Texas Instruments Inc. Action: 3/22 worth a buy at $24.75
Watch TXN to see that it stays above the Resistance Line and that the the black Upward Price Strength continues to push toward 85% and that neither hooks or goes flat and seperates further.
VPRT
VistaPrint NV Ord The  Netherlands
 Action BW:1/23/10; 2/26 buy $57.65; 3/2 $61 GAIN 5.81%; 3/9 62.77 gain 8.88%; 3/18 holding with a gain of 4.94%
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%.
WX Wuxi Pharmatech Cayman Inc Action: B-W 3/16 still watching. Did not meet our bid price so we did not buy. Still a definite "maybe" until we see growth in the Strength panel (Green) with the Upward Price Strength and High Price Strength. 3/23 buy at $14.65
WX is definitely a wait and see stock. We need to see strong buying volume and Strength lines that are over 50%. Buy 3/23 at $14.75
 
 
Cash in the Bank Portfolio Summary
... Where the real profit is
 At March 23, 2010
North of the Blue, JANUARY 1/31/2010 gain 12.50%* with holdings 1 month
Dow Jones Industrial Average 1/31/2010 loss -3.26% 1 month
S&P: 1/31/2010 loss -3.46% 1 month
NASDQ 1/31/2010 loss -4.27% 1 month
Stock Sell Date Gain / Loss Time Held
APA 1/12/2010
+ 6.32%
3 weeks
ATPG 1/12/2010
+2.78%
4 days
APOL 3/23/2010
+5.07%
5 weeks
BBNK 2/23/2010
+25.65%
4 weeks
BDH 2/05/2010
+14.55%
3 weeks
BRCM 2/23/2010
+ 1.55%
3 weeks
BRY 1/12/2010
- 3.55%
3 weeks
CISG 1/12/2010
- 6.95%
1 week
CAAS 1/12/2010
+35.29%
1 week
CSCO 2/1/2010
+6.84%
3 weeks
CYD 2/19/2010
+12.8%
2 weeks
EDZ 1/12/2010
+ 25.37%
2 weeks
EEE 1/12/2010
+ 63.83%
3 weeks
GG 3/18/2010
+ 4.62%
6 weeks
GLD 3/18/2010
+ 2.0%
6 weeks
GOLD 3/18/2010
+ 3.0%
6 weeks
HAL 1/12/2010
+ 9.60%
2 weeks
HMIN 2/16/2010
+ 16.16%
3 weeks
ISSI 2/5/2010
+ 14.55%
4 days
IYT 1/12/2010
+ 14.35%
2 months
KWK 1/12/2010
+ 5.60%
1 month
LL 1/12/2010
+ 6.86%
1 week
MOT 1/12/2010
- 6.03%
1 week
NWSA 2/23/2010
+ 10.48%
3 weeks
OIS 1/12/2010
+ 9.53%
3 weeks
OKSB 2/12/2010
+5.30%
2 weeks
OXY 1/12/2010
+ 1.86%
3 weeks
PL 1/29/2010
- 2.72%
5 weeks
VIP 1/12/2010
+ 7.37%
1 week
VIT 3/9/2010
+ 23.19%
3 weeks
week
WRLS 2/5/2010
+ 5.51%
1 week
Total 3/18/2010
+ 10.55%
2010 Average hold 2.5 weeks hold time
Total 3/18/2010
+ 18.28% per month
2010 Average hold 18.28% per month
Cash in the Bank Portfolio Detail
... Where the real profit is
 At March 23, 2010
Symbol Company Actions
APA
 Apache Action: Buy 12/17/09; at $99.70; sell 1/12/10 at $106.00; gain 6.32%; 3 weeks
REASONING: Bought when crossed BMA* going up; sold when High Price and Upward Price began to roll over and buying volume turned to above average selling volume. (Basic Rule with Early Sell.)
APOL
 Apollo Group Inc. CL A Action: BW:1/23/10 Buy 3/4 $61.10 3/9 $62.40 gain 3.12%; 3/18 hold gain 7.51%. SELL 3/23 AT $64.20 gain 5.07% in 5 weeks.
REASONING: Watch stocks reaction as it nears the two Resisitance Lines.
ATPG
ATP Oil & Gas CP Action: Buy 12/17/09; at $18.00; sell 1/12/10 at $18.50; gain 2.78%; 3 weeks.
REASONING:Bought when crossed BMA* going up; sold when price fell  below BMA*, High Price and upward Price fell below 85%. (Basic Rule with Early Sell.)
BBNK
 Bridge Capital Holdings

Action: Buy: 1/29/10 at $6.79; 2/16 hold still well North of the Blue;2/23 sell at $8.05; gain 25.62%

REASONING: Used Basic Rule. Stock crossed the BMA* on 1/29/10.  Both the Upward Price and High Price Strength lines joined as the climbed from the 50% stochastic area and went through the 85% line on 1/29.  I waited until later in the day to make sure the stock climbed through the strong Resistance Lines. Note the solid buy volume on the two preceding days.
BDH
 Broadband Holders
seeks to diversify your investment in the broadband business through a single, exchange-listed instrument representing your undivided beneficial ownership of the underlying securities. The trust holds shares of common stock issued by specified companies that, when initially selected, were involved in the broadband industry. Except when a reconstitution event, distribution of securities by an underlying issuer or other event occurs, the group of companies will not change. There are currently 22 companies included in the Broadband HOLDRS. The top ten are in our "Lists" under BDH_BROADBAND_ETF. 		Action: Bought 2/1/10 at $5.91; sell 2/5 at $6.77; gain 14.55%
REASONING: A clear Stochastic-W has formed under the 15% line. The final leg of the "W" does not have the 60 degree angle of climb we would like to see but it is coming up. This stock has never been a fast mover, but it has been one that does not bounce around. It is worth a buy, which we executed at the open on 2/16 at $11.07.
BRCM Broadcom CP CLA One of the prime movers for BDH. Action: Bought 2/12/10 at $30.30; sell 2/23 at $31.00 Gain 1.55% in 2 days.
REASONING: The stock blew through  the BMA* at the speed of light.  Absolutely no hesitation.  I'm watching this carefully because it has a history of small gains. Stock rolled over and stochastics dropped below the 85% line.
BRY
 Berry Petroleum Action: Buy 12/18/09; at $29.55; sell 1/12/10 at $28.50; loss 3.55%
REASONING:: Bought when crossed BMA* going up; sold when price fell  below BMA*, unfortunately, BMA* did not climb.  Should have watched closer.
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; 3/9 $23.60 gain 38.82% SOLD 3/9 AT $23.00 GAIN 35.29%.
A perfect Stochastic-W formed last week. Rryan Butcher found this one. Kudos Ryan. 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. Sold because the price started to fall and the Upward Price Strength and High Price Strength both rolled over and started down. NOTE: If you are either holding the stock or watching it the Channel shows a strong upward trend forming today, the 18th. Watch this one carefully.
CISG
Cinnsure Ads Action: Buy: 1/6/10 at $19.99; sell 1/12 at $18.60;loss 6.95%; 1 week.
REASONING:Price fell below BMA*; High Price and Upward Price fell below 85%.  Sell. (Basic Rule.)
CSCO
 Cisco Systems Action Buy: 2/1 at open $22.65; hold with stops; 2/23 sell at $24.20 gain 6.84%
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. 
CYD
 China Yuchai International Limited Action:Should have been bought 2/8 at $12.50 and sold 2/19 at 14.10. Gain 12.8%
A perfect Stochastic-W formed last week. Ryan Butcher found this one. Nice going Ryan. 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. Sell because the stochastic W did not continue as predicted. Here is a case where the timing of the buy is very important. The longer one waited the further the stock moved from a true Stochastic W. It cleared the 15% line on February 9 going up. That was the buy signal.
EDZ
 Emerging Markets Bear 3X Shares FD Action: Buy: 1/22 at $5.37; sell 2/8 at $6.75 gain 25.37%

REASONING: stock reacted very well to $87 Machine Generated Resistance Level; set new Machine Generated Resistance Level at $89.80 (always a positive sign); stock hesitated at multiple Machine Generated Resistance Levels but continue slow climb. Stock does not seem to be going anywhere. Watch to re buy. Correction. I did not stop out as I thought earlier. I did stop out on the 8th.

EEE
 Evergreen Energy Inc. Action: Buy 12/18/09; at $0.33; sell 1/12/10 at $0.54; gain 63.63%
REASONING: Bought when High Price and Upward Price Strength left the red oversold Stochastic Red Zone going up. sold when Upward Price and High Price fell  below 85%.  (Basic Rule with Early Buy and Early Sell.)
GG
Goldcorp Inc New Action: BW:  1/23/10; 3/2 buy $38.65; 3/9 40.44 gain 4.62%. 3/18 SOLD this one at 4.62% gain. If you own it you can hold but I will watch this carefully and buy when it breaks through the Resistance Line.
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; 3/9 110.16 gain 0% hold; 3/18 SOLD this one at 2% gain. If you own it you can hold but I will watch this carefully and buy wheN it breaks through the Resistance Line.a hold or Buy Watch, your choice.
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; 3/9 76.67 gain 2.91%; we sold this. Got tired of waiting. Gain 3.0%
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.
HAL
 Halliburton Action: Buy 12/31/09; at $30.31; sell 1/12/10 at $33.22; gain 9.60%; 12 days.
REASONING: Bought when crossed BMA* going up; sold when High Price and upward Price fell below 85%. (Basic Rule with Early Sell)
HMIN
 Home Inns Hotels Management Action: Bought 2/16/10 at open $31.61; hold 2/23; 3/3 sell 36.50; 3/4 sell 36.72 gain 16.16%
A perfect Stochastic-W formed last week. Ryan Butcher found this one. It looks like Ryan pulled off the "hat trick". Very nice going.
ISSI
 Integrated Silicon Solutions Inc. Action: Bought 2/1/10 at $5.91; sell 2/5 at $6.77; gain 14.55%
REASONING: Following our North of the Blue Basic Rule we should have bought this stock on 1/29.  I decided to wait to make sure that the Upward Price and High Price Strength lines held their climb and went through the 85% line.  Both choices, buy on the 29 or 1st were equally appropriate.  Waiting until 2/1 showed more caution.
IYT
 iShares Dow Jones Transportation Action: Buy 11/5/09; at $66.68; sell 1/12/10 at $76.25; gain 14.35%.
REASONING: Bought when High Price and Upward Price Strength left Stochastic Red Zone and crossed 50% line going up.  Soled when High Price and Upward Price Strength fell below 85%.  (Basic Rule with Early Buy and Early Sell.)
KWK
Quicksilver Resources Action: Buy 12/17/09; at $14.62; sell 1/12/10 at $15.44; gain 5.60%
REASONING: Bought when crossed BMA* going up; sold when Upward Price and High Price fell  below 85%.  (Basic Rule with Early Sell.)
LL
Lumber Liquidators Holdings  Action: Buy: 1/6/10 at $26.11; .sell 1/12 at $27.90; gain 6.86%; 1 week
REASONING:Price fell below BMA*; High and Upward Price Strength fell below 85%; time  to sell. (Basic Rule)
MOT Motorola, Inc. Action: Bought 2/16/10 at open at $7.29; Sell 2/23 at 6.85 down 6.03%
Motorola formed a nearly perfect Stochastic-W last week. That ant the fact that it is a driver in the Broadband ETF make it an Early Buy in my book. In retrospect, the W was not well formed. In addition, the stock did not make it to the BMA.
NWSA
 News Corporation CLA Action: Buy 2/1 with WEAK STOCHASTIC "W" at $12.41; 2/7 hold to see if it breaks through the Resistance Line. 2/23 sell at $13.6 0gain 10.48% in 3 weeks.
REASONING: News Corporation could buck the industry trend by posting real profits.  Moreover, we see a solid Stochastic "W" that formed over the past few days.  The buy high price average looks like a rocket poised for lunar lift off.  It is easy to see this coming out of the Red Jail Bars and climbing north of our BMA*.  Watch this one closely. 2/1 buy. 2/7 Stochastic W did not hold; fell below BMA*; hold for trend line to continue.
OIS
Oil STS International Action: Buy 12/18/09; at $38.00; sell 1/12/10 at $41.62; gain 9.53%
REASONING: Bought when crossed BMA* going up; sold when price fell  below BMA*, sold when Upward Price and High Price Strength fell below 85%.
OKSB
 Southwest Bancorp Inc. Action: Buy: 2/1/10 at 7.35; 2/12 stopped out at $7.74 Gain 5.30% in two weeks.
REASONING: I bought this as scheduled on 2/1/10 as it crossed our Blue Moving Average.  Because the Upward Buy and High Price Strength lines came together and did a very solid crossing of the 85% Stochastic line I went ahead with the plan.  However, I am hedging this with very tight stops because of the serious Machine Generated Resistance Lines.  There is very sold buying volume pushing the price up so all should go well.
OXY
Occidental Petroleum Action Buy 12/17/09; at $80.50; sell 1/12/10 at $82.00; gain 1.86%; 3 weeks.
REASONING: :Bought when crossed BMA* going up; sold when price fell  below BMA*. (Basic Rule.)
PL
 Protective Life Corp

Action: Buy: 1/22/10 at $17.92; sell 1/29/10 at 17.50.  Loss 2.72%.

REASONING: Fell below BMA*
VIP
 OPEN JT STK Co Vimpel Communications Action: Buy: 1/4/10 at $18.86; sell 1/12/10 at $20.25; gain 7.37%
REASONING: Trend line went flat; High and Upward Price fell below 85%; stock went below the Blue Moving Average (BMA*). (Basic Rule with Early Sell.)
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.SELL 3/9 23.85 hold gain 23.19% SOLD at a gain of 23.19% after power and price both rolled over and started down.
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.
WRLS
 Tellular CP Action:2/1 buy at $4.35; 2/5 sell at $4.59. Gain 5.51%
REASONING: Following our North of the Blue Basic Rule we should have bought this stock on 1/29.  I decided to wait to make sure that the Upward Price and High Price Strength lines held their climb and went through the 85% line.  Both choices, buy on the 29 or 1st were equally appropriate.  Waiting until 2/1 showed more caution.
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Channel Charting
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