FEB 1985 STOCKS & COMMODITIES Magazine

Article Archive For FEB1985

Chart Congestion Analysis by Holliston Hill

ARTICLE SYNOPSIS ...Chart Congestion Analysis by Holliston Hill Congestion areas appear in all markets whether it be gold, soybeans, IBM, or the Dow Jones Industrial Average. Being able to recognize the different types of congestion areas and knowing what they will lead to, can help the investor reap great profits. A congestion area is a price level in which neither the bulls or bears are in complete control. Accumulation and distribution are other names for congestion areas. The market cannot make up its mind in which direction it wants to go. Congestion areas are pauses in the market action; many traders step...

AUTHOR: Holliston HillDATE: FEB1985

Day Trading With Stochastics by John F. Kepka

ARTICLE SYNOPSIS ...Day Trading With Stochastics by John F. Kepka I have been using the Stochastics oscillator ""K"" and ""%D"" for well over a year (RE: May and Sep 1984 issues of Technical Analysis of Stocks & Commodities magazine). I use Stochastics, (in conjunction with other indicators), with futures intraday data from half-hourly down to 1 minute bar charts. Initially, I tried to use the Stochastics indicator as outlined in Technical Analysis of Stocks & Commodities, but I quickly learned that the ""clearly illustrated"" patterns were largely non-existent in real time intraday trading. By following the gen...

AUTHOR: John F. KepkaDATE: FEB1985

AUTHOR: Technical Analysis, Inc.DATE: FEB1985

Letters to Technical Analysis

ARTICLE SYNOPSIS ...Letters to Technical Analysis This column is our means of communicating with our subscribers and serves as an outlet for questions and answers. Please feel free to write about anything that you would like to know more (or less) about or pass along to the rest of us. We all run across trading techniques, services and products that have proven to be useful to some degree under different market conditions. Without a constant source of new ideas and subject matter coming from our readers this magazine would not exist. Each issue is designed to hold at least one idea or clarify one subject that sh...

AUTHOR: Technical Analysis, Inc.DATE: FEB1985

Probability of Investment Ruin by Sherwin Kalt

ARTICLE SYNOPSIS ...Probability of Investment Ruin by Sherwin Kalt When a client opens a managed account with as commodity trading advisor, the general practice is to specify a percentage loss at which the account will be closed. The natural question then arises as to what are the chances that this will happen within a given time period, for example, six months or a year. Given certain empirically determined characteristics of the trading system, this paper provides a method for solving this problem directly. The method can also be used in analyzing investments other than commodity managed accounts. It can be us...

AUTHOR: Sherwin KaltDATE: FEB1985

Selling Stock With Investor Relations by Carolyn Kott Washburne

ARTICLE SYNOPSIS ...Selling Stock With Investor Relations by Carolyn Kott Washburne A veteran stock broker took aside a new trainee to give him some advice. ""There is an old saying in this business,"" said the veteran. ""When the president of a company wants to buy you lunch, the stock is overpriced. If he refuses to pick up the tab, buy the stock immediately."" He paused and smiled at the puzzled trainee. ""What that means is that by the time a company goes on the road to pitch its stock, there isn't much of a story there for investors. Wait until things get better."" The veteran's advice gives a clue to the...

AUTHOR: Carolyn Kott WashburneDATE: FEB1985

Stock Market Double-Header? by Bill Dunbar

ARTICLE SYNOPSIS ...Stock Market Double-Header? by Bill Dunbar On the long side it's easy to make money in stocks at the beginning of a well-defined bull market. If you pick your issues by throwing darts or consulting your astrologer, or even listening to your investment advisor, you can hardly go wrong. The chances are on your side. But it's possible to improve your performance if you're in the right industry group. Usually all groups rise during the first few months of the bull market, but then some go on to higher ground, some start pitching about and some keel over and slide down the river. If you pick your ...

AUTHOR: Bill DunbarDATE: FEB1985

Theft? Commodity Floor Brokers by Allen D. Hanson

ARTICLE SYNOPSIS ...Theft? Commodity Floor Brokers by Allen D. Hanson Questionable trading practices in the Securities business became very evident to me during my years as product manager for a major corporation and later as a licensed floor broker. In those days, I owned individual seats on two of the nation's registered stock and commodity exchanges. I routinely carried commodity positions so large that they required daily reporting to the CEA (Commodities Exchange Authority), the governing body at that time. I also acted as an independent floor broker for a major brokerage house and other firms, always doin...

AUTHOR: Allen D. HansonDATE: FEB1985