ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:1 (36-38, 45): Index Rotation With Exchange-Traded Funds by David Vomund Which will perform best, large-cap stocks or small-cap stocks? Will value stocks outperform growth stocks or will growth outperform value? If you watch CNBC, you'll notice that growth managers always say growth will outperform, value managers always say value will outperform, and small-cap managers always say small-cap stocks will outperform. Every analyst has his unique approach, and he believes his style is best. Unfortunately, market environments change. That means there are times when grow...
ARTICLE SYNOPSIS ...Post-Bubble Problems by David Vomund Identifying these post-bubble problems will help you make appropriate adjustments to your trading system. For the markets, these are extraordinary times. In the last five years we've experienced the largest equity bubble in US history, and also experienced a bear market comparable to the Great Depression. Technical analysis remains valid in the aftermath of the bubble, as market movement is still based on the laws of supply and demand. The bubble and the ensuing bear market does pose problems to many forms of analysis, however. In this article I will exp...
ARTICLE SYNOPSIS ...Classic Point And Figure by David Vomund It was around before computers; it was around before calculators. It's been around forever, and despite that, it still works. It's point and figure charting, and it still offers unique advantages. Here are some examples. Most people use bar charts or candlestick charts in their analysis. Another charting form, point and figure, is less known but offers unique advantages over the more traditional charting methods. The point and figure charting technique became popular in 1948, when A. W. Cohen published his book on point and figure. Surprisingly, the m...
ARTICLE SYNOPSIS ...Triangles by David Vomund Stock prices tend to move in trends. When an existing trend ends, a classic technical pattern known as a triangle often develops. Here's how to make use of this pattern in the stock market. When an existing trend is in the process of ending, there is typically some backing and filling, during which a classic technical pattern referred to as a triangle often develops. There are many variations of this pattern, but here, we will concentrate on two variations: the right triangle and the symmetrical triangle. THE RIGHT TRIANGLE The right triangle pattern exhibits a ser...