ARTICLE SYNOPSIS ...Better Returns With Single-Stock Futures by Jeffrey P. Seyler What exactly are they, and how can we use them to our advantage? Launched on November 8, 2002, security futures products have been watched by many but traded by few. The reasons for this vary, but lack of volume (and therefore liquidity) seems to be one of them. As with all new products, volume takes time to develop, but these products are becoming more popular little by little, and will continue to increase in volume over time. And in spite of low volume, reports are that the two primary exchanges offering these products (OneChic...
BY: Jeffrey P. SeylerSUBJECT: Basic Techniques
ARTICLE SYNOPSIS ...Books For Traders by Technical Analysis, Inc. This article contains short one-paragraphic descriptions for the following recently published books: ? The Event-Trading Phenomenon ? Trade Like A Hedge Fund: 20 Successful, Uncorrelated Strategies & Techniques To Winning Profits ? An Investor's Guide To Trading Options ? The Dollar Crisis: Causes, Consequences, Cures ? Quantitative Trading Strategies ? Stikky Stock Charts ? The Retirement Savings Time Bomb ? And How To Defuse It: A Five-Step Action Plan For Protecting Your IRAs, 401(K)s, And Other Retirement Plans From Near Annihilation B...
BY: Technical Analysis, Inc.SUBJECT: Books For Traders
ARTICLE SYNOPSIS ...Explore Your Options by Tom Gentile COVERED CALLS If I write a covered call for a stock I bought at 30.50, am I allowed to place a stop-loss price, say, 27.00, to protect it from further decline? What happens if the stop-loss price is triggered? Although one of the components of a covered call is the underlying stock, it is still a spread, since it contains a combination of both a long and a short position. Most brokers do not place stop orders on spreads. However, you can probably place what is known as a contingency order, in which the spread is sold based on the stock price alone. If, fo...
BY: Tom GentileSUBJECT: Explore Your Options
ARTICLE SYNOPSIS ...Four Measures Of Market Volatility by Frederic Ruffy How do you read the CBOE's new measures of volatility? Find out here. The CBOE volatility index (VIX) was last modified in September 2003. The Chicago Board Options Exchange (CBOE) reconstructed the index ahead of a planned launch of options and futures on the index. While the debut of these new options and futures products is expected in late March 2004 (as of this writing in early March) pending regulatory approval, the old VIX started appearing under the symbol VXO, and the new formula began, continuing the ticker symbol VIX. Today, bo...
BY: Frederic RuffySUBJECT: Market Volatility
ARTICLE SYNOPSIS ...Interview: Understanding Intermarket Analysis With John J. Murphy by Matt Blackman John Murphy has become a household name in the technical analysis community. And how could he not? He was the technical analyst for CNBC for seven years, and is the cofounder and president of MurphyMorris.com. His book Technical Analysis Of The Financial Markets, first written in the late 1980s, has become a classic, and its latest edition is required reading for those studying for the Market Technicians Association's Chartered Market Technicians (CMT) designation. He is also the author of The Visual Investor a...
BY: Matt BlackmanSUBJECT: Interview
ARTICLE SYNOPSIS ...Letters To S&C by Technical Analysis, Inc. EMAIL SPAM Editor, I received a piece of spam today that mentions your magazine. I am contacting you to enlist your aid in battling such spam. Inasmuch as I resent every uninvited email contact such as this, and think that spammers ought to be banished from civilized society, I urge you to adopt the editorial position that this person and his company are no longer welcome in the pages of STOCKS & COMMODITIES magazine, and that he is also no longer entitled to use your logo in his ads. Such use by him reflects badly on your publication due to guilt ...
BY: Technical Analysis, Inc.SUBJECT: Letters To S&C
BY: Jayanthi GopalakrishnanSUBJECT: Opening Position
ARTICLE SYNOPSIS ...Price + Volume = Price Movement by Tim Ord Here's how you can use price and volume to determine buy and sell signals. I use a lot of different indicators and methods, but one that has been consistently successful is the price/volume relationship at support and resistance levels. Support or resistance areas occur at previous highs and lows. Prices bounce off previous highs and lows and develop trading ranges. I will show you how price and volume react to previous highs and lows, and why price pushes through or reverses at these points. SWINGS Previous highs and lows in a stock or index defi...
BY: Tim OrdSUBJECT: Classic Techniques
ARTICLE SYNOPSIS ...Ranked Relative Strength by Jeff Parent How do you know which sectors to trade? Here's a system that will identify the strongest sectors so you know what you should be chasing. When Charles Dow started recording his average in the late 19th century (Figure 1), the markets were essentially a one-horse show. Transportation-related stocks dominated the blue-chip segment of the markets and were the most actively traded. Dow used them as a proxy to gauge economic conditions. He measured the simple average price of a basket of predominantly railroad stocks and compared the result to the 100 level....
BY: Jeff ParentSUBJECT: New Techniques
ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:5 (34-35): Sidebar: Excel codes for PCI by M.H. Pee EXCEL CODES FOR PCI In this section, I will provide the Excel codes for the 35-day PCI. Sidebar Figure 1 (following page) shows all the required calculations for the 35-day PCI on the euro between January 2, 2002, and April 12, 2002, inclusively. The data is represented in continuous contract format. The date, open, high, low, and close are entered into columns A, B, C, D, and E, respectively. The date is represented using eight digits, with the first four representing the year, the next two the month, and the last...
BY: M.H. PeeSUBJECT: Sidebar
ARTICLE SYNOPSIS ...The Bad, The Good, And The Profitable by John L. Momsen Here's why you have to research your trades as thoroughly as possible. In February 2003, I received an intriguing email from one of my friends. He said he had discovered a nearly perfect, 94% profitable, seasonal trade in the orange juice market and wanted my opinion on it. This certainly piqued my interest: I've been a trader of seasonal commodity trades for more than 20 years, and I've written both books and articles on the subject. So what was this seasonal trade? "Buy May orange juice on the close of February 26 and exit the trade o...
BY: John L. MomsenSUBJECT: Real World
ARTICLE SYNOPSIS ...The Inverse Fisher Transform by John F. Ehlers How often have you been indecisive about entering or exiting a trade? Here's one way to get a clear indication. The purpose of technical indicators is to help time your decisions to buy or sell. Ideally, their signals should be clear and unequivocal, but more often than not you will find yourself crossing your fingers before pulling the trigger. Even if you have placed only a few trades, you will have experienced this. INVERSE FISHER TRANSFORM In this article I will show you a way to program your oscillator-type indicators to give clear, black...
BY: John F. EhlersSUBJECT: Cycles
ARTICLE SYNOPSIS ...Traders' Resource: Advisory Services Advisory services are all over the place, as this listing shows. You have plenty of choice and plenty of price points to consider. One key factor is whether the outfit you're checking out is a Registered Investment Advisor (RIA) or a registered Commodity Trading Advisor (CTA). Though it doesn't weed out the foolish advice, the act of registration puts the person or persons under the government's scrutiny. In this listing, filled in by the companies themselves, you'll find those who have RIA and/or CTA certifications as well as those who are nonregistered ...
BY: Technical Analysis, Inc.SUBJECT: Traders' Resources
ARTICLE SYNOPSIS ...Traders' Tips by Technical Analysis, Inc. This month's tips contain code for John Ehlers' Inverse Fisher Transform in the following software programs: TradeStation, MetaStock, AmiBroker, WealthLab, TradingSolutions, NeuroShell Trader, AIQ TradingExpert, TickQuest, Prophet, StockWiz, Aspen Graphics, Financial Data Calculator, TechniFilter Plus, and eSignal....
BY: Technical Analysis, Inc.SUBJECT: Traders' Tips
ARTICLE SYNOPSIS ...Websites For Traders: 888Options.com by Bruce Faber 888OPTIONS.COM This site could have been named "AllAboutOptions.com" or "Everything-You-Wanted-To-Know-About-Options-But-Were-Afraid-To-Ask.com," but it would have been more difficult to find a phone number that matched. The Options Industry Council (OIC) developed 888OPTIONS.com to educate the investing public (and their brokers) about the benefits and risks of exchangetraded options. While options are highly flexible, versatile, and often rewarding, they are also complex, tricky, and risky. In their continuing endeavor to educate investo...
BY: Bruce R. FaberSUBJECT: Websites For Traders
ARTICLE SYNOPSIS ...Websites For Traders: StockConsultant.com by David Penn STOCKCONSULTANT.COM How much information do you really want to know about the stocks you are thinking about trading and investing? This was the first reaction I had when I typed Yahoo's stock symbol (YHOO) in the "enter symbol" box of StockConsultant.com. With the click of a mouse, StockConsultant.com produced a stock report for YHOO that was as comprehensive as any I've come across on the Internet. Doubt it? Consider what you get: a multichart geared toward intraday (15-minute) data, with daily last, change, open, high, low and volume...
BY: David PennSUBJECT: Websites For Traders
BY: Ashwani GujralSUBJECT: Working Money
BY: Stephen W. BigalowSUBJECT: Working Money
BY: David PennSUBJECT: Working Money
BY: Paul FellSUBJECT: Working Money