Executive Newsletter North of the Blue
America's Stock Analysis System
June 7, 2010 |
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| Greetings! |  Don't forget our Wednesday evening seminar at our office, 11000 S.W. Barbur Blvd, Suite 100, Portland, OR 97219 from 6:30 PM to 8:00 PM. It is available to trial subscribers and paying subscribers alike at no charge.
We will hold our weekly Webcast using another Webcast tool this Sunday evening. This is the third and final tool that we are evaluating so join us and give it a test. North of the Blue does not charge for Webcasts although there may be a long distance telephone charge for those who call in. If you have a time that is especially good or bad please let us know. Details to follow by this Friday.
Check out our "Offer You Simply Cannot Refuse" below. It really is one you cannot afford to miss.
Look at our article below on simplification. You will find it just what you need in these difficult times.
And give special attention to Ryan's List this Thursday. It is guaranteed to get you out of your easy chair and sitting in front of a very busy computer terminal. This week Ryan will take you into the world of instant gain or loss -- the world of the Daytraders. If you want a hands on tutorial read this and then call Ryan for tips and explanations of how to find stocks and use North of the Blue to pick buy and sell times. Ryan has become a day trader and is willing to share his thoughts with you as he breaks the learning curve in daytrading, one of the most fascinating of all investment strategies. Not surprisingly, North of the Blue is the perfect analysis tool to use in daytrading.
Yes, we are tipping our hat to another web site on a regular basis. We don't expect you to become currency traders, but this site has an excellent analysis of this week's economic calendar. Click here to follow this up. http://www.forex.com/economic_calendar.html.
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.
Have you been following Ryan's Notes? They give you a picture of how an investor learns how to use North of the Blue. He does not win every time, but as he pays more attention to the nuances in North of the Blue his investments become more profitable. You can reach him at Ryan@northoftheblue.com. See our phone list at the bottom of this letter for his phone number..
Dick Brenneke, on the other hand, was one of the co-authors of North of the Blue has been solely responsible for the additions and changes we have made over the last 8 years. When he explains how North of the Blue functions it is from the perspective of a person who knows all the lines of code and what the program can do.
Our objective in writing North of the Blue was to 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 with the least amount of effort. We succeeded and produced a product with an overall accuracy rate exceeding 85% and annual gains exceeding 50%.
A pat on the back: Nearly a month ago we pointed out to our subscribers that there was a serious anomaly in our stochastics and stock prices. Our conclusion was that stocks should either be sold or have solid stops set up to prevent loss in the coming market drop. We were right about the market drop.
The best of all investing to you. Please stay in touch.
Dick
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| Staying in Touch. |
 Did you know that we publish three newsletters every week? Compare our "Stay in Touch Approach" with any other subscription system.
Ryan's List is sent out once a week ... as is our Red Runners. Our Executive Newsletter is written every Tuesday and sent out every Wednesday.
In addition we hold a seminar style class every Wednesday evening ... with a once a week Webcast. Tentatively the Webcast will be held every Sunday evening so that we can bring you up to date on weekend news that affects the market and review openings of foreign markets and pre and post market buying.
In addition, we offer one-on-one sessions for $25 per person per hour between 8:30 PM and 6:00 PM. Additional family members are free.
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| Simplify Your Investing! |
A comment we hear from some users is that North of the Blue requires considerable time and analysis. Yes, it does.
Since not everyone wants to spend time every week analyzing stocks highlighted by North of the Blue or sent by others, we have an alternative. This allows you to apply one single rule that allows you to put in as much or as little as you like. Here's how this is done.
First, the one and only rule you need to remember:
Buy a stock when it is gaining value and passing through our Blue Moving Average (BMA), i.e. going North of the Blue. Sell a stock when it's price is declining and is either dropping down through our BMA or falling down below our 85% Stochastic line, i.e. when the Upward Price Strength or the High Price Strength drops below our 85% Power Line, whichever comes first..
You can apply this rule either to our 17 Month Overview or our Channel Analysis.
Our 17 Month Overview was written for the investor who wants to devote as little time as possible to his or her investments and is looking for long term gains.
Here are some examples of real investing using our 17 Month Overview:
Put these symbols into your "Symbol" Window in the 17 Month Overview chart section and look at the results:
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IShares Lehman Aggregate Bond Fund (AGG) where you could have bought December 8, 2008 at $94.03 and still be holding the stock today where it has a value of $105.87. You would have a gain of $11.84 per share or 12.59% plus the dividends on these bonds. At the least you have an annualized gain of 25.18%. Since you are holding United States' Treasury Bonds you have no risk of a default.
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Dow Jones Industrial Trust I (DIA) where you could have bought on July 15 of last year at $82.71 and sold on June 7, 2010 at $99.92 with a gain of $17.21 a share or 20.80%. If you had used the Early Sell Rule you could have sold on May 3 at $111.40 for a gain of $28.69 per share or 34.68%. Again, you are dealing with a very conservative trust.
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IShares Cohen Steers Realty (ICF). We have all heard about how dangerous real estate investing is, haven't we. Check this: Buy 7/29/09 at $36.89 and sell 12/31/09 at $53.71 with a gain of $16.82 per share or 45.59%. What a way to end 2009!
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NetFlix Inc (NFLX). Buy February 2 at $60.87. Continue to hold with today's closing price of $115.43 for a gain of $54.56 or plus 89.63%.
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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?
Here are some other examples of how the 17 Month Overview could have helped you:
- 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. |
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An Offer you Simply Cannot Refuse! |
We are ready to provide you with a list of five stocks that are poised to follow our North of the Blue With Early Sell rule using our 17 Month Overview charts. You heard correctly.
If you call Dick Brenneke at 503-233-9452, email rjbrenneke@northoftheblue.com or come to this week's Wednesday evening seminar or dial in to our Sunday evening Webcast. The time is limited so don't put this off. Contact me using one of these methods and hitch your wagon to a star. These selections are available only to Paid Subscribers or registered, active Trial Subscribers.
What have you got to lose? |
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What's New! |
Ryan's newsletters continue to generate true interest. This week he will take you into the world of instant gain or loss -- the world of the Daytraders. If you want a hands on tutorial read this and then call Ryan for tips and explanations of how to find stocks and use North of the Blue to pick buy and sell times.
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.
I had an interesting discussion with a broker today and pass along his comments for your consideration. Personally, I think that he is a bit early buying now but certainly he's talking about a stock worth considering. The stock is Westport Innovations (WPRT). It closed today at $16.37. George Sorros has bought 5% of the company and Kevin Douglas recently bought 18%. These are big time investors in the energy field so they must be seeing something here. To talk about this further, please call John Prinzivalli at FirstMidwestSecurities.com. His phone number is 631-406-6800. His email is jprinzivalli@FirstMedwestSecurities.com. No, we don't endorse the stock but Mr. Prinzivalli has been following the stock for well over a year and strong natural gas companies are worth paying attention to. |
| 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 his thoughts and stock picks. 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?
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| 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. |
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Indexes Year to Date
June 7, 2010 | % Change Year-to-Date | Market |
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| +18.53% | North of the Blue Current Portfolio |
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| -2.20% | Nasdaq OTC Comp Index |
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| -1.94% | Amex Composite Index |
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| -4.50% | S & P 500 Index |
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| -4.76% | Dow Jones Industrials Index |
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| -2.89% | IBD New America Index |
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| -8.14% | N.Y.S.E. Composite Index |
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| +5.78% | Gold Index |
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Update 6/7/2010 | 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
June 7, 2010
| Symbol | Company | Actions |
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FAZ | Financial Bear 3x Shares | Action Buy-Watch: 6/7/10 $15.99. |
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| REASONING: 6/7/10 a short term buy and trade. Stochastics over 85% and climbing. Stock well above our Blue Moving Average. I say "short term" because there are serious Resistance Lines above the current position. This is also why the delay in putting this on our B-W list after it went North of the Blue. | | JXP | ProShares UltraShort Pac X Japan | Action: BW: 6/7/10 at $22.25 |
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| REASONING:Watch for a rebound from the Support Line. |
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Current Portfolio Holdings
June 7, 2010
| Symbol | Company | Actions |
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| AU | Anglogold Ashanti Ltd. | Action Buy:5/21 at $38.04. Current price: $42.55. Gain $4.51 11.86%. |
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| REASONING: AU has blown through our Blue Moving Average but is currently hung up on a strong Resistance Line $42.55. If this one breaks through it will continue to be a winner. Keep this one on your radar screen. | |
ABX | Barrick Gold | Action:: Buy 6/7 at $41.13 Today 43.57 or 5.93% in very few days. |
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| REASONING: AU just rebounded off a Support Line and goes right through our Blue Moving Average. This shows a strong trend | | BVN | Compania de Minas Buenaventu | Action: Buy 5/20 at $33.03; 6/7 36.69 gain $3.66 or 11.08% in a very few days. |
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| REASONING: BVN has developed a strong base and passed through two Resistance Lines with ease. Gold has been off but indications are that it will regain its status as a haven.. Serious money always neeeds a home. | | DGL | Powershares DB Gold | Action: Bought5/24 at $42.30. 6/7 $44.40 4.96% in a handful of days. |
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| DGL is yet another gold based stock. Don't overbuy gold, but do keep it on your radar screen. | |
| Average Gain for this Portfolio |
8.46% | |
| Average hold time for this Portfolio |
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| Annualized Gain for this Portfolio |
308.79% |
| | Cash in the Bank Portfolio | |
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| Rules -- Expanded |
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.
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| 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 |
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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,
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Richard Brenneke
North of the Blue, America's Stock Analysis System
June 7, 2010
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