Contents For
JUL2011
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Books For Traders
ARTICLE SYNOPSIS ...Ben Graham Was A Quant: Raising The
IQ Of The Intelligent Investor (338 pages,
$49.95 hardcover,
2011, ISBN 978-0-
47 0 - 6 4 2 0 7- 8 ) b y
Steven P. Greiner,
published by John
Wiley & Sons. Benjamin Graham, the
pioneer of value investing, believed in
a p h i l o s o p hy t h a t
continues to be followed today. Part of this philosophy includes adhering to your stock selection process. If a quant designs and implements
mathematical models for predicting stock
or market movements, what better way to
remain objective than to invest using algorithms ...
BY: Technical Analysis, Inc.SUBJECT: Books For Traders
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Calling The Tune In The Gold Market
ARTICLE SYNOPSIS ...Just about everyone seems to be aware of the longrunning uptrend in the gold market, one that is now
about 10 years old. Gold market traders, on the other
hand, realize that the shorter-term swings and cycles in this
highly emotional commodity are chaotic and unpredictable, and
that a highly disciplined discretionary or mechanical trading
system is an absolute must in order to make and retain trading
profits. Here is a closer look at an intraday, fully mechanical
trading system for gold futures....
BY: Donald W. Pendergast, Jr.
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Comparing Seven Money Flow Indicator
ARTICLE SYNOPSIS ...Since Joseph Granville presented the
first money flow indicator in 1963,
other technicians have attempted to
improve on Granville's original formula or devise a completely new approach using
volume to predict market price moves. On-balance
volume (Ob v), Chaikin money flow (Cm f),
accumulation/distribution, volume price trend
(vp t), volume oscillator (VO), ease of movement,
negative volume index, positive volume index,
Klinger oscillator, volume flow indicator (vf i),
and the money flow index (mf i) are all indicators
that technicians have developed to quantify the
rel...
BY: Markos KatsanosSUBJECT: Indicators
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Explore Your Options
ARTICLE SYNOPSIS ...Taking stock of a broken WinG
If I'm bearish on a stock but wish to
own shares at lower levels, would an
out-of-the-money (Ot m) long put broken butterfly through assignment be a
win-win spread to consider? I like the
idea of participating in larger dollarpriced stocks such as Google (GO O G)
or Apple (AAp l) for a credit with these
two linked but somewhat different
objectives in mind. At the same time, I
am not completely sure of all the risks
involved. Any light you shed on this
would be greatly appreciated....
BY: Tom GentileSUBJECT: Explore Your Options
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Futures For You
ARTICLE SYNOPSIS ...CURRENCY FUTURES
What is the best way to build an intermediate- to long-term position in the
currencies?
First, traders must choose a venue --
whether foreign exchange, futures, or
equity products such as exchange traded
funds (Et fs). If you have been following
this column, you likely know we have
supported arguments for and against
each method but lean toward the idea
of currency futures.
Here is a quick recap, but keep in
mind these are highlights and do not
encompass the entire argument....
BY: Carley GarnerSUBJECT: Futures For You
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How High For Crude?
ARTICLE SYNOPSIS ...As of late spring 2011, the varied response to geopolitics
has pushed already firm Ny m e x Wt i crude oil prices
to more than $100 per barrel. Sensing the speculation,
major media and news outlets have caught the "how high will
crude oil go" bug, while the pundits have been suggesting
barrel prices ranging from the $120s to $200-plus.
Of course, reacting to these forecasts can be treacherous.
Pundits often blindly forecast prices without any measure
or accountability or responsibility even if they turn out to
be wildly wrong. And back in 2008, when prices zoomed to
almost $...
BY: Dean Roger
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Interview: Gail Mercer Of TradersHelpDesk.com
ARTICLE SYNOPSIS ...Gail Mercer, a 15-year veteran of the trading industry who is the founder and Ce o
of TradersHelpDesk, has dedicated her career to helping traders achieve success.
Committed to helping traders grow from amateur analysts to master traders, her
unique methodology is rooted in her philosophy that success depends not on a
trader's indicators but the ability to remain focused and responsive to price. Selfresponsibility, another cornerstone of her work, provides the mirror for what a
trader needs to learn about him- or herself in relationship to the markets. Working
with both the inner an...
BY: J. Gopalakrishnan and B. FaberSUBJECT: Interview
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Letters to S&C
ARTICLE SYNOPSIS ...Editor,
Excellent article by Jamie Theiss in the
May 2011 S&C. Nearly all my trades are
done by fading the gaps right after the
opening using one-minute candlesticks
plus a couple of indicators. Occasionally,
I will wait around after my exit and look
for a continuation back in the direction of
the gap, as Theiss describes in his article,
and that works too. I'm done by 10:30 at
the latest every day. His article was very
timely for me because I've been thinking
about staying around longer more often.
Thanks for the encouragement....
BY: Technical Analysis, Inc.SUBJECT: Letters to S&C
BY: Martha Stokes, CMTSUBJECT: Indicators
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Opening Position
ARTICLE SYNOPSIS ...For a while, we have been saying that the equity markets have been reeling out of control for some reason. As long as we were making money, though, nothing really mattered. It's only a matter of time before we see a major selloff either as a correction or a reversal. The markets have to correct. On May 23, 2011, when the Dow Jones Industrial Average dropped 130.78 points, it set off all the alarms and the media was on top of it. Could this be the start of a reversal in the market? Had the market reached its top?
Along with that dip in the equity markets, the price of gold, which had declined ...
BY: Jayanthi GopalakrishnanSUBJECT: Opening Position
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Product Review: Professional Flux Tool Set
ARTICLE SYNOPSIS ...Ben Letto, the computer programmer and creator of the Flux tools,
has discovered a way for traders
to view potential intraday price turning
points that occur in the future. He has
produced indicators based on predictive
algorithms that harness the buying and
selling behavior of institutional traders,
revealing high-probability reversal times
up to seven days in advance. In essence,
he discovered a way to level the trading
field by allowing the individual trader to
peer through the tunnel of time and view
potential price turning points that occur
in the future....
BY: Barbara Star, Ph.D.SUBJECT: Product Review
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Product Review: VisualTrader 8
ARTICLE SYNOPSIS ...I last reviewed VisualTrader in
2008. The latest version, VisualTrader 8.0, remains unique in its
ability to display technical information
and market movement. Nirvana Systems
has continued to add new features and
make improvements to the software.
With VisualTrader and just a few clicks
of the mouse, you can determine which
way the market is moving, find strong
trade candidates, and execute trades....
BY: Sean M. MooreSUBJECT: Product Review
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Profiting In Biotech
ARTICLE SYNOPSIS ...Is biotech investing the same as investing in slots? Is there any way to consistently
build wealth in this sector? Many investors avoid biotechnology altogether, appalled at the prospect of stocks that can nosedive over 60% within minutes, while
others are attracted to the extraordinary gains possible for companies that receive Food and Drug Administration
(Fd a) approval. All investors wonder: Is biotech investing a hopeless
gamble? Without knowing what the
Fd a will decide beforehand, is there
a way to trade biotech stocks with a
high probability of success....
BY: Mark Messier and Jeff Dos Santos
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Q&A by Don Bright
ARTICLE SYNOPSIS ...Reversing The NegativeEffects
Mr. Bright, thanks for your column, I read
it every month, it really helps. A while back
I read about how some of your traders
have taken advantage of what seemed to
be a negative situation. High-frequency
and subpenny trades take place with more
frequency these days, and I think you said
something about how to reverse the negative effects. Could you possibly go into that
again, please? --coyotejk
Sure, let's start with a quick review
of what we're addressing. Automated
computer programs can and do send in
high-frequency trading orders in s...
BY: Don BrightSUBJECT: Q&A
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Traders' Tips
ARTICLE SYNOPSIS ...For this month's Traders' Tips, the focus is
Edgar Kraut's article in this issue, "A ColorBased System For Short-Term Trading."
Code for MetaStock is already provided
in Kraut's article. Subscribers will also find
the same code at the Subscriber Area of our
website, www.Traders.com. Presented here
is an overview of possible implementations
for other software.
Traders' Tips are provided to help the reader implement
a selected technique from an article in this issue. The entries are contributed by various software developers or programmers for software that is capable of customi...
BY: Technical Analysis, Inc.SUBJECT: Traders' Tips
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Traders' Resource: Newsletters & Publications
ARTICLE SYNOPSIS ...Where can traders turn for market insight,
trade recommendations, and education about
trading and investing? Perhaps the question
should be where can't you? These days,
financial information is put out in print, on
TV, on your handheld, and over the Internet
in various formats, but there's still nothing
more readable, reliable, or researchable than
a regularly published newsletter or magazine....
BY: Technical Analysis, Inc.SUBJECT: Traders' Resource