This is a copy of the actual newsletter from June 2009. 

All monthly newsletters follow the same format.

DISCLAIMER: Unless specifically stated otherwise, I may or may not own/have owned any of the stocks discussed on this site and may or may not act on the analysis of any stock contained on this site.  Your trading decisions are completely and solely yours to make.  The analysis of the stocks on this site was not solicited by any of the issuers or related parties/organizations.  Past performance is NO guarantee of future performance.  Stock investing is a very risky venture - DO NOT invest money that you cannot afford to lose as you could lose your entire investment!

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NOTE:  Any time percent gain is discussed, both gross and annualized, it is calculated NOT taking in to account commissions, fees, or dividends.

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FUTURE - stocks that are in a formation and could possibly break to the upside.

ATCS - PINK

Above chart courtesy of StockCharts.com

ATCS:  In a downtrend since the beginning of '04, this stock has been in a channel since the beginning of '08 or even '05.  I like the narrower channel that starting in '08 with top being around 1.1.  It is better defined than the channel that could possibly be drawn starting in April of '05 with a top being around 2.1.  Other features I like about this stock: 1) the more gradual downtrend that started in '05, 2) this downtrend leading into the channel, 3) declining volume and volatility since '05, and 4) the three moving averages have come together and leveled out. 

    Rec:  Buy on a break above channel around 1.15.  Protective sell stop under 0.3.

HDSN - Nasdaq CM

Above chart courtesy of StockCharts.com

HDSN:  HDSN was a Current about a year ago and then changed to a Past (see Archives).  I have brought it back because of the channel that seems to be developing strongly with a top around 4 and a bottom around 0.70.  The volume isn't revealing much right now, but with such a long and strong resistance around 4, this one could really take off if it breaks to the upside.

    REC:  Buy on a break above the channel around 4.  Protective sell stop under support under 0.70.

RDWR - Nasdaq GS  

Above chart courtesy of StockCharts.com

RDWR:  In a downtrend since the beginning of '04 with possibly a declining wedge.  Volume has been declining very steadily during that time as well. 

    REC:  Buy on a break above downtrend which is around 9 right now.  Protective sell stop under 5.0.

CURRENT - stocks that currently seem to be moving up.

AMCS - Nasdaq GM

Above chart courtesy of StockCharts.com

AMCS:  *NOTE* This is a redone chart from the September 2008 chart as I believe it needed some adjustments.

As one can see in the chart, it has broken the long downtrend that started back in '02.  If you have not already bought this one based on my recommendation of a Buy Stop in the 2.7-3.0 range, now would still be a good time to buy.  As one can also see, 3.0 seems to be a historical resistance/support area.  A significant break above 3.0 could be a signal to add to your position.

    REC:  I would recommend buying now with it currently trading in the 2.7-3.0 range.  Possible add to position or enter new position on a break above 3.0.  Protective sell stop should be under 1.4 or 1.2.

MEDW - Nasdaq CM

Above chart courtesy of StockCharts.com

MEDW:  A declining wedge since the beginning of '04.  It has recently broken out of the wedge.  Volume is not ideal but the formation is too obvious and strong to ignore.

    REC:  I would recommend buying now as it is not far from the breakout price of 5-5.2.  Protective sell stop under 4.

ONCY - Nasdaq CM

Above chart courtesy of StockCharts.com

ONCY:  Here is another declining wedge that has recently broken to the upside.  Wedge started in '04 with declining volume during the formation.

    REC:  I would recommend buying now as it is trading near the breakout price of 1.5-1.7.  Protective sell stop under 1.

OXGN - Nasdaq GM

Above chart courtesy of StockCharts.com

OXGN:  This one is a bit trickier.  A downtrend since '97 but I would not call the cross of the downtrend at the beginning of '09 as a breakout.  The red support line, interestingly, became a resistance line in '08, and thus, I would call the recent break above that line to be the breakout.  The declining volume leading to the break followed by the blip of increased volume is a pattern I have often seen that leads to further gains after a pullback or period of consolidation.

    REC:  I believe it would be best to try to buy this closer to the breakout price of 1.7.  Try entering a Buy Limit order around 1.7

RECAP - follow up on select stocks mentioned in previous newsletters.

CATT: Since the last newsletter, there has been a merger announced.  Shares will be bought at 9.25.  One could sell now as it is trading above 9.25, pay the sales commission and put that capital into something else that has a future.  Or one could hold and get 9.25/share without paying a commission, but you will have to wait until later this year to be able to use that capital.  I choose the former - See Past section below.

CBOU:  Move protective sell stop to about 5.

COMS: On 6/1/09, it broke above the recommended Buy Stop of 4.4.  I, personally, did not enter a position due to lack of capital at this time.  It is in the Virtual Stock Account and will be followed.  Protective sell stop should be under 2.0.

IECE:  Went through the recommended buy stop of 2.55 on 5/11.  Protective sell stop should be under 1.5.  I am currently looking to purchase in the 2.5-2.7 range as I did not have the capital to purchase on 5/11.

KIRK:  This is one that I bought, but it never came back down to the recommended buy area of 3.6-4.  With it trading at over 8 which is more than a 100% gain, I decided to sell half of my shares at 8.16 on 5/27.  It is currently trading over 9 so I will continue to watch for sell signals.

ONTY:  The recommended Buy Limit of 3.2 was met and exceeded.  It is currently trading around 2.6.  I would recommend entering a position now if you have not already done so.  Protective sell stop under 0.60.

PAST - stocks that have been bought and sold

CATT - Nasdaq GS

Above chart courtesy of StockCharts.com

CATT:  This one was first covered in February 2009 and then recapped in May 2009.  Please refer to those newsletters for past analysis.  CATT had a multi-year downtrend with declining volume.  I bought on a break above the downtrend with a minimum target price of 16.  However, in May 2009, a merger was announced with shares being purchased at 9.25.  Instead of holding my shares and waiting several months for the merger to finalize, I decided to sell my shares on the market so I could use the capital for other purchases.

    Entry:  Bought on a break above the downtrend at 8.25 on 5/07/09

    Exit:  Exit on a market order to sell at 9.29 on 5/29/09

    *Note* Sold due to merger

    Results:  A gain of 1.04/share = 12.61% overall = 617% annualized

SUMMARY:

    Dow Closed May higher than the April close.  This confirms the major reversal bar of March.  May did see a pullback/consolidation that I mentioned in the May newsletter, but it wasn't as significant as I thought it would be.  This signals that there could be some strength left in the general market.  However, I do see the potential of a pullback or at least consolidation in July and/or August.  But this is just what technicals are telling me. . . Let's face it, the market will do whatever it wants to.  So, we just have to stay the course and go about our business.  Continue to be objective and check the status of your positions on a regular basis, whether that be daily, weekly, or monthly.

    Other items:

        1) You may have noticed that this months newsletter does not contain any charts from Marketwatch.com.  They have recently changed their charting program and it no longer suits my needs.  It is supposedly better and more modern now, but in my opinion, it fell victim to the view that more bells and whistles means better -- something that didn't need fixing is now broken.

        2) Please make sure that you are always checking the "Stocks Covered" page.  That is where all the current recommendations are.  It is updated every month with changes from the previous month in italics.  Not always will the changes be covered in the "Recap" section.