North of the Blue, America's Stock Analysis System
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North of the Blue
North of the Blue, America's Stock Analysis System Market Trend
Update:  Market Trend and Simple Trading
August 3, 2010
In This Issue
Market Overview
Simple Trading
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Greetings!


In this Newsletter I'll be going over the Market Trend as well as what makes North of the Blue so unique. We have seen the market take a very nice run and I admit I was simply wrong in my last assessment of the Market Trend.  North of the Blue has rules in place and every rule is never 100% correct. What we are seeing is a market that is becoming overbought and about to hit some major resistance points.   

Tips

As always if you have questions I am available at 971-338-8222 or ryan@northoftheblue.com 
Market Overview.

To see the highs and lows please click on the Bars box.  To clearly see the close for the day click off Trend.  


SPY- The S&P broke through resistance lines last week and tested support around 109 on Friday.  Monday the market broke through the last Resistance point we can clearly see.  The next big leap is around $113.50.  If the market can break through at that point I believe there will be a real bullish market.  If it does not we may continue to see the market bounce around as the summer trading continues.

DIA- The Dow and S&P look almost similar to each other.  The Dow will now has a Resistance Line clearly seen at 107.25.  Again we are seeing the Power Lines in the 85% zone together.  At this point until that Resistance Line is breached we are in limbo for a market direction.

QQQQ- The Q's have hit an invisible resistance line.  If you click on the bars you can follow the closing bars to the left and see the resistance that is being created.  The Upward Price Strength needs to breach 85%.

AGG- People are continuing to put money into bonds.  (This is where I begin to scratch my head).  Yet the market is going up despite a depression, higher unemployment rates, and a continued failed housing market.  Bonds continue to rise.  Something is not right.

We are still in earnings season so please don't expose yourself to problems unnecessarily! 

Simple Trading- we're in it for the little guys.

North of the Blue was created by two programmers who wanted to accomplish two things.  Create tools for investors to make $1000 a year off of $10,000.  The other was to create a simple program to help determine buy and sell points.  

Simple Trading.  To view a sample please click HERE


Trading is based on one basic principle: Support/Resistance Lines. What North of the Blue has created are a few tools to help you discover if a security has enough power to break through Support/Resistance Points.  

North of the Blue has the Blue Moving Average (BMA) which is a living Support/Resistance Line.  As a security moves above the BMA we call this North of the Blue, if it falls below it is south of the blue.  The green lines represent Support/Resistance Lines.  Now seeing these lines and a controlled median between them is easy but how does one know if the stock has enough power to break through a Support/Resistance line?

The programmers came up with the Power Lines which represent how much power a stock has.  When together the greater the power, but when separated one has to understand the order and meaning behind each Power Line.

Upward Price Strength (Black Power Line) represents Price Strength.  When the Price is sustained at a certain level it will most likely attract more buyers causing heavier volume.  This is why is it significant that they Upward Price Strength is above the High Price Strength.  (as you can see in the DIA, SPY and other key indexes is that the volume pulled the price up)  However more times then not the Upward Price Strength has greater power being above the High Price Strength.

High Price Strength (Blue Power Line) represents volume.  When we see volume dips (represented in the volume chart and can be seen in the Blue Power Line) is indicated the security is ready to make a move.  More times then not the High Price Strength is pulled up when the Upward Price Strength is moving up.

When these two lines are together it will create a solid blue line indicating the stock is poised to make a move.

North of the Blue found that 15-50-85% are the best % points to help find support and resistance in the Power Line chart.  Using these % points one can make  decisions as to the time to enter and exit the market. 

 North of the Blue has simplified it's rules.  

North of the Blue Basic Rule-  When the stock price is moving through the Blue Moving Average with the Power Lines together and moving up this appears to be a buy.

North of the Blue Basic Sell-  When the stock price falls below the Blue Moving Average this appears to be a sell.  

North of the Blue Advanced Sell-  When both Power Lines fall below 85% line the stock appears to be a sell.  This will most likely retain more profit then waiting to sell using the Basic Sell Rule.
 
There are several other rules that I will write about later.  Above I believe is the simplest way to use North of the Blue.  I will be making a video soon as I know many people are visual learners as myself.  

Please email with any questions or comments. 

Regards,
 

Ryan Butcher
North of the Blue, America's Stock Analysis System

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, is the 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

A final note:  We are not licensed Investment Advisors nor are we Stock Brokers.  Therefore, we cannot provide you with individual investment advice.  We provide stock analysis based on rules we have developed.  These rules provide our users with superb buy and sell timing based on these rules.  We cannot comment on stocks that do not meet our rules tests.

Our current accuracy rate for 2010 is over 85% as of March 29, 2010.   As always, though, please keep in mind that past performance is not a guarantee of future performance.