Executive Newsletter North of the Blue
America's Stock Analysis System
May 25, 2010 |
|
|
|
|
|
| Greetings! |  Our Wednesday evening seminar is available to trial subscribers and paying subscribers alike. In addition, later this week we'll have another Webcast for the first 14 people who sign up. There is no charge for either the seminar or the Webcast.
Just when you thought that working with the stock market in these troubling times takes too much effort, North of the Blue steps up with a very easy, very effective approach to stock analysis -- Our 17 Month Overview.
When we first wrote North of the Blue, we wanted to help meet the needs of two groups of people:
- Those who wanted to micromanage their capital on a daily basis.
- Those who wanted to manage their capital with a minimum amount of effort.
These two groups had one thing in common: They wanted to produce the maximum gain in the shortest time.
North of the Blue was written to help both groups. We have spent the last several months of newsletters, seminars and webcasts addressing the needs of the first group of investors, i.e. those who wanted to spend the time needed to produce fast paced gains with minimum risk. When your tools have an overall accuracy rate exceeding 85% and annual gains exceeding 50% you have what you need.
Read on below to see how our tools also allow you to produce significant gains with a minimum of effort. With this approach you can simply ignore the roller coaster ride the market has taken during the past month. And you can produce long term gains you have to see to believe. See the article titled " xxxx " below.
Nearly three weeks ago I pointed out to our subscribers that there was a serious anomaly in our stochastics and stock prices. My conclusion three weeks ago: stocks should either be sold or have solid stops set up to prevent loss in the coming market drop.
The best of all investing to you.
Dick |
| Market Overview & NOTB Wins. |
 If you have been following our Red Runners and Ryan's picks, which he publishes at least twice per week, you have seen how attention to detail and strict adherence to our rules produced money in the bank even though the market sounded like a junk yard on a bad and busy day.
That's right, winners as in cash in the bank winners. Look at this: Last week North of the Blue held on to its nearly 19% year to date gain while most of the indexes fell into negative territory in their year-to-date evaluations.
Winning is all about having the best available selections, and rules that provide on the money accuracy.
Look at what Ryan has done. He lost on one or two picks, but his losses were minimal compared to his gains.
This week we continue to see stochastics and prices falling. Time to be very selective in your buying and even more precise in applying sell rules.
On the other side of the coin, we see bonds, e.g. AGG, going up. A good time to buy since most are hitting our North of the Blue Buy Rule. Take a look at our "Bonds" and our "Key-Indexes" listing. "Metals" is another strong listing. Then take a look at our "Leveraged-Bearish" and "Leveraged-Bullish" listings. Any leveraged position requires a stout will and the ability to shrug off daily ups and downs.
As an example, consider the ultrashort funds such as EUO are racking up huge gains. If you believe that the EURO is in serious trouble and not getting better, look at some of the short and ultrashort ETN and ETF stocks. We'll talk about these again on Wednesday evening and also during our Webcast this week.
Don't miss Wednesday night's meeting. Not only will it be a winner but it will produce some real winners. We will also show you how to use North of the Blue to generate long term gain. |
| Simplify Your Investing with Our 17 Month Overview! |
A comment we hear from some users is that North of the Blue requires considerable time and analysis. These folks would rather not have to analyze stocks daily or even weekly. They would prefer to look at a stock as their time allows and go for longer term gains.
Of course, by doing this they will sacrifice some of their possible gains. We asked ourselves this question: What does North of the Blue offer that would allow users to take a more passive role in their stock management? If users did not want to work with Buys and Sells on a daily basis how could they deal with the very turbulent market we see today?
The answer has been staring everyone in the face as long as North of the Blue has been around. The "17 Month Overview Charts" allow users to take a long term look at market gains and losses and disregard the day to day choppiness of the market. Let me give you some examples. We will go into them in depth at our Wednesday evening seminar. Here are some examples:
- MED, 350% gain over 8 months;
- ACL, 48% gain over 6 months;
- CAAS, 321% over 9 months;
- OKSB, 26% over 1 month;
- VIT, 57% over 1 month;
- RGLD, 10% over 1 month;
- EGO, 33% over about 1 month;
- SA, 14% over about 1 month.
Don't miss tonight's meeting. Not only will it be a winner but we will show you some easy winners. |
|
What's New! |
Ryan's Monday and Thursday newsletters are still the subject of numerous calls and emails as our investors see what North of the Blue can do for them and get a chance to look at stocks we have spend dozens of hours each week researching. You get the finished product, not just a "hot tip".
Don't forget your stops! Channel Analysis users When in doubt, sell, move the money into a bond fund and wait for the next round of buying opportunities. Both Ryan and I will discuss these opportunities tonight and in our webcast on Thursday.
Believe it or not, there are really solid buys available, especially in such investments as the Proshares Ultra Short Euro Fund (EUO). This will lead to a discussion of how you short stocks and currency without actually going short. It is a fascinating and very profitable world.
We will let you know the details of our next Webcast. We can only accommodate 14 people, so please email us with your reservations as soon as possible. Those who joined us last week were very pleased. |
| What Do You Want From Us? |
We don't want to overload your Spam circuits, so please let us know if we are sending too much information.
Here is our current mailing schedule. Monday and Thursday Ryan sends out our Red Runners. On Tuesday/Wednesday I finalize our Executive Newsletter and drop it into the email. The weekend we reserve for research and analysis of stocks that have shown promise during the week. Sometimes none do; sometimes there are dozens showing promise and we have to pare the selections back heavily.
So here's our question to you: Are you getting too much information from us? Would you like fewer stock insights or more? Please let us know because you are the ones we want to please.
Finally, let us know if you would like more information on our "17 Month Overview" charts. Many have asked for assistance in using this and we are providing it. Let us know if you would like to join a discussion of how to make money the easy way. |
| Red Runners in North of the Blue |
Our Red Runners' program continues to grow with great help from Ryan and the many subscribers who have contributed their research and analytical talents. We are trying to stay ahead of the stocks we list so that Red Runner selections really are ones that recently left a Red Zone in a stock's Power Panel. |
| Upcoming Contest |
Different approaches to investing produce very different results. Ryan and I have agreed to run a year long contest using North of the Blue.
Here are the rules: We will each start the year with $1,000 of investment capital. We both must justify our buy and sell decisions by pointing to specific rule or rules that we followed in deciding on buys and sells. No "feel good" decisions, only hard core reasoning.
Stick around and we'll let you know when we start. We may allow others to join but have not reached a decision on that yet. What about you? Any interest in joining the contest?
|
| North of the Blue's Vision |
Three principles set us apart from other stock analysis companies:
Support
Whether you are a paying subscriber or are using our system on a trial basis you will get world class support from your fellow Americans. American's wrote this program, support this program and help the program's users.
Stocks
Four times per week you will receive stock suggestions from us. The stocks we send out meet one or more of our buy or sell rules. That's right, we tell you when stocks meet our sell tests too.
Simple and Transparent Rules
As you all know, we have one basic rule, our North of the Blue Rule. In essence it says that a stock meets our buy test when it climbs North of (up through) our Blue Moving Average (BMA) and meets our basic sell test when it drops South of (down through) our BMA. The rest of our rules are variations on this theme. This last rule is the reason that we have so many professional people as subscribers. CPA's, lawyers and others who deal with rules in their daily lives appreciate the fact that we not only tell you that a stock meets our buy or sell test but we also tell you why. |
|
|
|
Indexes Year to Date May 25, 2010| % Change Year-to-Date | Market |
|---|
| 27.07% | North of the Blue Current Portfolio |
|---|
| 8.46% | Nasdaq OTC Comp Index |
|---|
| 5.63% | Amex Composite Index |
|---|
| 6.42% | S & P 500 Index |
|---|
| 5.57% | Dow Jones Industrials Index |
|---|
| 5.55% | IBD New America Index |
|---|
| 4.03% | N.Y.S.E Composite Index |
|---|
| 11.08% | Gold Index |
|---|
|
*For a detailed listing of the top stocks in each sector please go to the "List" section of our program. | The Company you May Keep: Always investigate before you invest. Always check our chart. Does your stock meet one of our Buy Rules? Is the price up more than 5% from a defined Buy-Point for the rule you are using? Over 5% may be more risky. Fundamental research includes knowing annual and current earnings and sales increases, high return on equity, better profit margins, sponsorship, market in a confirmed upturn. When either a sector or the market overall are in a downturn you need to pay particular attention to your reasons for buying. What, for instance, convinces you that a particular stock can buck a broad trend?
A company's inclusion in one of our lists should not be viewed as a recommendation. Many are newer, smaller and highly volatile companies that require further research due to their speculative nature. Companies located outside the United States bring added risks because of the influence government policies may have on the company. Detailed research on your part is imperative. | |
Buy-Watch
North of the Blue's - Red Runners
May 19, 2010 | To check our Stock Updates and review Ryan's lists please go to our Newsletter Archive by clicking here. | | Cash in the Bank Portfolio | |
|
| Rules |
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
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 another 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.
Here is a rule we introduced in April of this year, our Integration Rule. It emphasizes the fact that North of the Blue is an integrated, cohesive system. All of the pieces must function together to provide valid buy and sell decisions.
INTEGRATION RULE: A stock may be safely bought using this rule when: (1) it is rising in value; (2) the Blue Moving Average (BMA) displays a smooth, upward trend; (3) there are no significant Resistance Lines above the stock price; (4) the Upward Price Strength and the High Price Strength are joined above 85%; (5) there is continuous buying volume and that volume is near or above 100% of our Average Volume. The stock should be sold when any of these conditions are no longer true.
|
|
| How to Find Us |
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 |
|
|
Remember to join us for a detailed view of our latest rule -- the Integration Rule, where you let someone else spend the dollars proving that the stock is a good buy and you join in to collect some cash. Almost too good to be true. But, it does not cost you a penny to find out.
Sincerely,
|
|
Richard Brenneke
North of the Blue, America's Stock Analysis System
|
|
|
|
|
