FEB 1992 STOCKS & COMMODITIES Magazine

Article Archive For FEB1992

"Technician's Technician" Martin Pring by Thom Hartle

ARTICLE SYNOPSIS ...""Technician's Technician"" Martin Pring by Thom Hartle Technician-writer-money manager: Martin Pring was described as the ""technician's technician"" by Barron's, and his diverse background can certainly confirm that. Pring received his initial training with a Canadian investment dealer. His interest in technical analysis led him to join Storey, Boeckh in 1975, publisher of The Bank Credit Analyst. ""The Pring Market Review"" was introduced in 1984 as an extension of his interest in technical analysis. Along the way, he has lectured on and published a number of works on investing and technic...

AUTHOR: Thom HartleDATE: FEB1992SUBJECT: Interview

A Low-Risk, High-Potential Return Option Strategy by Jean-Olivier Fraisse, C.F.A.

ARTICLE SYNOPSIS ...A Low-Risk, High-Potential Return Option Strategy by Jean-Olivier Fraisse, C.F.A. Can call options be used as a substitute for purchasing stocks? Covered calls -- selling a call on stock being held -- is one low-risk strategy, but profits can be limited on an up move. Another low-risk strategy, the long call plus cash equivalent, attempts to preserve capital while combining safety and potentially high profit. Jean-Olivier Fraisse explains how. Options trading is not for the faint of heart. Beyond technical skills, it requires intuition and just plain luck. Some option strategies, however, are ...

AUTHOR: Jean-Olivier Fraisse, C.F.A.DATE: FEB1992

A Wyckoff Approach To Future by Craig F. Schroeder

ARTICLE SYNOPSIS ...A Wyckoff Approach To Future by Craig F. Schroeder The Wyckoff approach, which has been a standard for decades, is as valid for futures as it is for stocks, but even students of the technique appear to be unaware of its extended uses. Most technicians know that Wyckoff analysis stresses volume and price, and as there is always uncertainty about the level of volume on current and previous days for futures, it seems logical to conclude that Wyckoff and futures are not compatible. This may seem logical, but it's wrong. According to Schroeder, Wyckoff is not simply about price and volume; it is c...

AUTHOR: Craig F. SchroederDATE: FEB1992

Closing Tick by Arthur A. Merrill, C.M.T.

ARTICLE SYNOPSIS ...Closing Tick by Arthur A. Merrill, C.M.T. Buyers' market or sellers' market? Counting the upticks and downticks can give you a clue, Merrill says. Are buyers reaching for stock? Do they have to bid a price higher than the last price given (an uptick)? Or do sellers have to accept a lower price to get rid of their stock (a downtick)? A count of the upticks and downticks should indicate whether it's a buyers' or sellers' market. The closing tick is reported each day in the financial press. It shows, for various markets, the number of stocks whose last change in price was an increase less the n...

AUTHOR: Arthur A. Merrill, C.M.T.DATE: FEB1992

Developing An Edge by John Sweeney

ARTICLE SYNOPSIS ...Developing An Edge by John Sweeney Once you've developed something with an edge on the market, it's only natural to want to exploit it mercilessly, making hay while the sun shineth, so to speak. The simplest way I know to do this is to add more positions to your basic direction, buying dips when long, selling rallies when short. In my last three Settlements, I've battered one harebrained idea into reasonably profitable shape so that it gives us good trend selections and gets me out in a timely manner. However, there's more. Once we're in a good trade (which we know via the maximum adverse ex...

AUTHOR: John SweeneyDATE: FEB1992

Intermarket Analysis And The Deutschemark by Richard Forest

ARTICLE SYNOPSIS ...Intermarket Analysis And The Deutschemark by Richard Forest Richard Forest, a two-time Traders' Challenge winner, becomes a S TOCKS & COMMODITIES author with this monograph on how intermarket analysis -- that is, analyzing elements across more than one market and across countries to predict the outcome of seemingly disparate elements -- can be used to trade the Deutschemark or other currencies. Forest points out that the U.S. dollar and the Deutschemark are interrelated and the dollar and interest rates are interrelated, and thus, by watching interest rates the behavior of the Deutschemark and ...

AUTHOR: Richard ForestDATE: FEB1992SUBJECT: Intermarket Analysis

Profiting From Convergence by Ira G. Kawaller

ARTICLE SYNOPSIS ...Profiting From Convergence by Ira G. Kawaller Here are three ways to capitalize on the property of convergence -- the fact that futures prices and spot prices will necessarily come together at the futures expiration. The same concept can be applied to many markets, including various other financial futures contracts, as well as assorted hard commodities. LIBOR (London interbank offered rate) futures contracts are recognized as Chicago Mercantile Exchange (CME) contracts that pertain to a $3 million one-month Eurodollar time deposit, and the Eurodollar futures contract refers to the contract w...

AUTHOR: Ira G. KawallerDATE: FEB1992

SIDEBAR: ADD-ONS VS. PYRAMIDING

ARTICLE SYNOPSIS ...ADD-ONS VS. PYRAMIDING A paragraph explaining the difference between add-ons and pyramiding....