Article Archive For
Christopher Cadbury
The Short-Range Oscillator and the DJIA by Christopher Cadbury
ARTICLE SYNOPSIS ...TRADING TECHNIQUES The Short-Range Oscillator
And The DJIA by Christopher Cadbury
Oscillators come in many shapes and forms. Here, one unique oscillator is analyzed to determine patterns and the results in the stock market after a particular pattern occurs.
A simple oscillator mathematically modifies the price data so the results oscillate in a range. Some oscillators use a range of zero to 100, while others move above and below zero. For example, one popular oscillator is the difference between today's closing price and a 20-day simple moving average (SMA) of the closing price. If the ...
AUTHOR: Christopher CadburyDATE: SEP 1995
Identifying Trades With The Option Premium Ratio by Christopher Cadbury
ARTICLE SYNOPSIS ...Identifying Trades With The Option Premium Ratio by Christopher Cadbury
What is the option premium ratio? Simply, the option premium ratio is the ratio of price premiums on puts relative to price premiums on calls. It covers all listed equity options.
As explained in previous articles, this ratio has some remarkable characteristics relating to momentum. I have found that significant market rallies follow the positive momentum supplied by several consecutive days of gains or unchanged values in the ratio and by several consecutive daily gains in the Dow Jones Industrial Average (DJIA) at low ...
AUTHOR: Christopher CadburyDATE: JAN 1995
AUTHOR: Christopher CadburyDATE: FEB 1995
The DJIA And The Stock Index Futures Cycle by Christopher Cadbury
ARTICLE SYNOPSIS ...The DJIA And The Stock Index Futures Cycle by Christopher Cadbury
Do phases of the three-month futures cycle usually coincide with periods of greatest weakness or periods of substantial strength in the stock market? This American Stock Exchange trader details DJIA performance in relation to the beginning trading periods for the lead stock index futures contracts.
Stock index futures expire on the third Friday of March, June, September and December. The three-month period between expiration dates is known as the three-month futures cycle. Declines in the Dow Jones Industrial Average (DJIA) o...
AUTHOR: Christopher CadburyDATE: OCT 1994
The Option Premium Ratio by Christopher Cadbury
ARTICLE SYNOPSIS ...The Option Premium Ratio by Christopher Cadbury
Christopher Cadbury, member of the American Stock Exchange and book author, explains a sentiment indicator generated from the equity options market that identifies trading opportunities in the stock market.
Monitoring market sentiment data is a popular technique today because investors can use the data for market forecasting. One popular sentiment measure is derived from investment sentiment surveys, while another sentiment indicator is the ratio of put trading volume to call trading volume. A lesser-known measure of sentiment is the option pr...
AUTHOR: Christopher CadburyDATE: JUL 1994
The Option Premium Ratio And The DJIA by Christopher Cadbury
ARTICLE SYNOPSIS ...The Option Premium Ratio And The DJIA by Christopher Cadbury
The discussion on the option premium ratio continues, with more examples on forecasting short-term movements in the DJIA.
Previously, I introduced the option premium ratio, which is the ratio of price premiums on puts versus calls. If it seems familiar, there's a good reason: It's the fifth psychological variable on the General Markets Indicators page in Investor's Business Daily. The premium ratio, in my opinion, is the best of all the sentiment indicators. Let me explain one of the ratio's truly outstanding characteristics, the ...
AUTHOR: Christopher CadburyDATE: AUG 1994