Article Archive For
DEC2002
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Adam & Adam Double Bottom by Thomas Bulkowski
ARTICLE SYNOPSIS ...Adam & Adam Double Bottom by Thomas Bulkowski
If you see this type of double bottom,
it may mean you need to make a
quick exit.
discussed the Eve
& Eve double bottom
chart pattern
in the November
2002 STOCKS &
COMMODITIES. If
the Eve & Eve double bottom represents the classic
double bottom, then the Adam &
Adam must be the new kid on the
block. It lacks everything the Eve &
Eve double bottom has going for it....
AUTHOR: Thomas BulkowskiDATE: DEC2002SUBJECT: Charting
AUTHOR: Technical Analysis, Inc.DATE: DEC2002SUBJECT: Books For Traders
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Developing Hot Zones by Massimiliano Scorpio
ARTICLE SYNOPSIS ...Developing Hot Zones by Massimiliano Scorpio
Can you forecast a bar's close from its open? This
technique is helpful in trading recently introduced
tradables that don't have historical charts yet, such
as single-stock futures.
In the December 2001 STOCKS &
COMMODITIES, I demonstrated a simple
method that uses a statistical indicator
to help identify profitable patterns.
Here, I have taken the method one step further: I've analyzed the
behavior of each bar and the
relationship between the open
and close. If the market is
showing a specific pattern, is
there any way to forecast the
close from ...
AUTHOR: Massimiliano ScorpioDATE: DEC2002SUBJECT: System Design
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Explore Your Options by Tom Gentile
ARTICLE SYNOPSIS ...Explore Your Options by Tom Gentile
DOUBLING DOWN ON OPTIONS
Does doubling down on a losing options
position by purchasing more and thus
lowering the breakeven point work the
same as it does with stocks? Thank you.
-- Fiorenzo Primavori, Genoa, Italy
Yes and no. As a way of dollar cost
averaging, yes, this does work. If you
decide to buy IBM 70 calls for 7 points and
then the stock breaks down, you could
purchase an equal number of call options
for a lower premium, thus bringing your
breakeven down closer to today's price.
...continuded...
AUTHOR: Tom GentileDATE: DEC2002SUBJECT: Explore Your Options
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Interview: Edgar Peters Talks About Chaos Theory by Jayanthi Gopalakrishnan
ARTICLE SYNOPSIS ...Interview: Edgar Peters Talks About Chaos Theory by Jayanthi Gopalakrishnan
His work Chaos And Order In The Capital Markets ignited the imagination
of traders and investors everywhere, and the way we viewed the
markets changed. As PanAgora's chief investment officer and co-chair
of its investment committee, Edgar Peters is responsible for ensuring
the integrity of the firm's investment strategies and product array. His
insights into market dynamics and behavioral finance have not only
added value to client portfolios but also stimulated the development of
innovative investment technologies. A...
AUTHOR: Jayanthi GopalakrishnanDATE: DEC2002SUBJECT: Interview
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Letters To S&C by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Letters To S&C by Technical Analysis, Inc.
OUR 20TH ANNIVERSARY
Editor,
The October 2002 issue
of STOCKS & COMMODITIES
finally
reached me here in New
Zealand. Congratulations
on the 20th year
of publishing S&C.
I remember meeting STOCKS & COMMODITIES
publisher Jack Hutson at a
seminar in Toronto, Canada. He was
telling me about this exciting idea he
had about publishing a new magazine
that would feature new ideas in technical
analysis of all markets. He asked me
if I would write some articles for the
magazine. I told him I liked his idea and
would be glad to help. That was 20
years ago. Ja...
AUTHOR: Technical Analysis, Inc.DATE: DEC2002SUBJECT: Letters To S&C
Opening Position by Jayanthi Gopalakrishnan
AUTHOR: Jayanthi GopalakrishnanDATE: DEC2002SUBJECT: Opening Position
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Q&A by Don Bright
ARTICLE SYNOPSIS ...Q&A by Don Bright
READING THE TAPE
I've just finished reading some of your
articles in STOCKS & COMMODITIES.
Once again you illuminate topics that
were unknown to me. I'm a novice trader
in a proprietary program down on Wall
Street, and I have been running into
difficulty with this market (just as many
others have). I have been trying different
methods to see what might work for me.
Recently, I have been employing a
method that watches for size stepping
up/down in stocks with volume on
average between 80,000 and one million.
I like this technique because I can clearly
define my edge and beli...
AUTHOR: Don BrightDATE: DEC2002SUBJECT: Q&A
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Single-Stock Futures by Jayanthi Gopalakrishnan
ARTICLE SYNOPSIS ...Single-Stock Futures by Jayanthi Gopalakrishnan
How can you take advantage of them? To find out, we asked OneChicago and Nasdaq LIFFE, the two exchanges expected to launch this hot new product, a few questions. Here's what they had to say.
Why has it taken so long to launch
single-stock futures (SSFs) in the US?
OneChicago: The products were
banned about 20 years ago when the
Securities and Exchange Commission
(SEC) and the Commodity Futures Trading
Commission (CFTC) could not agree
on who had jurisdiction over them.
...continuded...
AUTHOR: Jayanthi GopalakrishnanDATE: DEC2002SUBJECT: Frequently Asked Questions
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Testing Signal Efficacy by Jeff Parent
ARTICLE SYNOPSIS ...Testing Signal Efficacy by Jeff Parent
Here's how you can evaluate how effective
your trading system is.
ot unlike new pharmaceutical
drugs, buy and sell
signals must be put
through rigorous tests to
determine their usefulness.
Only when signals
prove profitable repeatedly
should the indicator being tested be
incorporated into a trading system. But how
can you quantify how effective your signal is?
In this article I will suggest a standardized
process to achieve this goal....
AUTHOR: Jeff ParentDATE: DEC2002SUBJECT: New Techniques
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The Stock Market, The Calendar, And You by Jay Kaeppel
ARTICLE SYNOPSIS ...The Stock Market, The Calendar, And You by Jay Kaeppel
What's more important -- what you buy
or when you buy it?
Seasonality in the market
has long been a welldocumented
phenomenon.
A detailed look
at the stock market will
lead you to conclude
that there are certain
times when it is more advantageous to be
in the stock market than other times.
Seasonality offers a viable approach to
investing and trading, and in this article I
want to focus on this aspect. I will illustrate
how combining four basic seasonal
tendencies can maximize returns.
One advantage of employing a seasonal
system is that...
AUTHOR: Jay KaeppelDATE: DEC2002SUBJECT: Cycles
Traders' Resource: Brokerages
AUTHOR: Technical Analysis, Inc.DATE: DEC2002SUBJECT: Traders' Resource
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Traders' Tips by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Traders' Tips by Technical Analysis, Inc.
TRADESTATION: DEVELOPING HOT ZONES
Massimiliano Scorpio's article "Developing Hot Zones" in
this issue addresses a technique for producing statistical
reports on the predictive nature of the key reversal pattern. As
the author makes clear, this particular pattern is only one of
many possible patterns for study. The author's goal is to show
the reader a process for building statistical reports on any
pattern that might be of interest.
These statistical reports are the product of the
MSOpenClosePct indicator. This indicator is the focus of the
article...
AUTHOR: Technical Analysis, Inc.DATE: DEC2002
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Websites For Traders: BearMarketCentral.com by David Penn
ARTICLE SYNOPSIS ...Websites For Traders: BearMarketCentral.com by David Penn
BEARMARKETCENTRAL.COM
For all the carnage wrought upon the financial markets
after three years of equity losses, stock market bears
remain a provincial lot. Sure, every now and then a
cautious or negative remark from a well-known bear will
appear in the mainstream press. But such opportunities
for bears to make their case to the public at large remain
relatively rare -- and often take place only in the wake
of a terribly bad week in the market ("Here to join us is
noted bear market guru Mr. Grizzly, who seems to be
annoyingly satisfied...
AUTHOR: David PennDATE: DEC2002SUBJECT: Websites For Traders
Working Money: Gann's 50% Rule by Dennis Peterson
AUTHOR: Dennis D. PetersonDATE: DEC2002SUBJECT: The Chartist
Working Money: Revisiting The 4% Solution by David Penn
AUTHOR: David PennDATE: DEC2002SUBJECT: Novice Traders' Notebook