News From North of the Blue, America's Stock Analysis System

Year to Date Comparisons
April 6, 2010

North of the Blue

gain 17.35%

NASDQ

gain 3.01%

S&P 500

gain 3.13%

NYSE

gain 4.93%

Dow Jones Industrial Average

gain 4.79%

4/6/2010 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
April 6, 2010

Symbol

Company

Actions

ABT

Abbott Labs

Action: BW: 4/5 at $52.96 (open price) by rjb

REASONING: ABT just left the Red Zone and has climbed through 15%. It is too early to buy but this one now but it definitely goes on our Buy Watch List. If High Price and Upward Price Strength both continue to gain this will soon fit our Early Buy Rule.

AMAT

Applied Materials Inc.

Action: BW 4/6 AT $13.15

REASONING: AMAT has been on and off our lists for several weeks now. has finally fought its way through the thicket of Resistance Lines and has settled above the top line for two days in a row. One more day of watching should confirm whether this will still meet our tests for a buy. We also need to watch and see if the Upward Price Strength and High Price Strength remain over 85%.

AMGN

Amgen

Action: B-W 4/5 at $ 60.80 Almost move to buy but still lacking.

Reasoning: Amgen climbed North of the Blue and has slowly worked its way through the Machine Generated Resistance Lines. There were three very wide lines, indicating significant resistance. It is now through the last line and definitely meets our North of the Blue buy rule test. Using this test it could have been bought earlier but I decided to wait until it went through the Resistance Lines and both the High Price and Upward Price Strength stabilized.This may mean a wait of another day or two. AMGEN did close above the Resistance Line on Thursday and is riding above it today (4/5).

APOL

Apollo Group, Inc.

Action: BW: 4/5 at $61.50 (open price) by ryan and rjb

REASONING: ABT fell sharply and today rebounded up from our Blue Moving Average. However, rather than going back up, it hit a Machine Generated Resistance Line. We need to wait and see how it resolves itself here. We also need to see what happens with the Upward Price and High Price Strength lines. They separated and the High Price Strength looks to be leveling off at about 50% while the Upward Price Strength appears to be leveling in the 60% area. This stock does not meet our tests now but will if the Strength lines turn and begin to climb.

CAGC

China Agritech

Action: BW 4/5 at $22.99 (open price).

REASONING: CAGC just bounced off the Blue Moving Average alter a very steep decent. The Channel shows a definite climb. But, both the High Price Strength and the Upward Price Strength have fallen severely with the Blue Line nearing 15% and the Black nearing 50%. This is not a good sign. With power dropping like this, the buy signals do not line up and we are in a definite wait and see situation. Monday is a Blue buying day but the last few days have been Red selling days. All in all, we need to watch this stock.

*BMA = Blue Moving Average

Symbol

Stock

Actions

REASONING: What rules were applied, why and when.

AMGN

Amgen

Action: B-W 4/5 at $ 60.80

MRVL

Marvell Technology Group

Action: B-W 3/29 $20.16; 3/6 high $21 gain 4.96% in 1 week

REASONING: MRVL is ratcheting up its price every day. There are no giant leaps, but each day brings another step back and then up again. Fortunately the ups are greater than the downs and the trend line has begun to swing up. Another day or two should make this a solid buy.

Action:

Symbol

Company

Actions

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% 4/6/ high $32.69; gain 10.21%

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%. Strong trend up. Hold.

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% 4/6/ high $26.38 gain 16.46%

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. Trend still good. 4/6 hold.

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; 4/6 $17.54 gain 10.59%

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. 4/6/10 Good trend. Hold.

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%; 3/6 hold high $28.84 gain 12%

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. Good trend. Hold.

HLF

Herbalife

Action: 3./1/10 at 39.75 a solid buy. 3/18 3/23 44.50 gain 11.25% 4/6 high $46.93 gain 18.06%

HLF shows a slowing climb as the Upward Price Strength Line climbs toward 85%. Not a perfect buy at this price but worth serious consideration if Strength lines stay above 85% and volume remains in the blue. Hold but watch for power lines downturn.

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%; 4/6/10 high $22.48 gain 7.05% hold

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. Hold for very good trend. Also look at significant growth in silicon wafer sector.

MRVL

Marvell Technology Group

Action: B-W 3/29 $20.16; 3/6 high $21 gain 4.96% in 1 week

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%; 4/6 high $26.05, gain 5.46%

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 separate further. go flat. Good trend so hold.

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%; 4/6 $13.13 gain 51.444% one month 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*. Strong upward trend, hold.

PFE

Pfizer, Inc.

Action: 3/23 worth a buy at $17.54. 4/6 hold

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 separate 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 separate further. go flat or separate 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%; 4/6 high $8.00 gain 19.42% hold

I bought TLAB a little late but believe I can still participate in the growth based on its well established trend line. 4/6 hold as the trend line strengthens.

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; 4/6 high $25.30 gain 2.22%. Hold.

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 separates further.Hold. Stock is North of the Blue and High Price and Upward Price Strength are both climbing over the 85th percentile.

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%; 4/6 high $58.94 gain 2.26% hold

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%. Hold; stock price is going North of the Blue and Strength lines are climbing. A concern is the low volume.

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; 4/6 high $15.94 gain 8.80%

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 Price is North of the Blue and strength lines have joined and are climbing above the 50 percentile. A concern is volume. A plus here will be President O'Bama's Health Bill, especially if the government picks up the cost of the "hole in the donut".

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.

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.

Year to Date ComparisonsApril 6, 2010

Buy-Watch ListApril 6, 2010

... buys this past week

*BMA = Blue Moving Average

Year to Date Comparisons
April 6, 2010

Buy-Watch List
April 6, 2010