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• A Mutual Fund Switch System by Nelson Freeburg

  ARTICLE SYNOPSIS ...A Mutual Fund Switch System by Nelson Freeburg Testing indicators to confirm viability is always important, and here, two indicators that stand up to historical testing are presented and then used to develop a simple mutual fund switch system. Many successful stock market analysts and money managers rely on quantitative market models - systematic timing methods that incorporate a variety of technical, monetary, valuation and sentiment data. Analysts such as Norman Fosback and John Hussman employ multiple regression to blend their indicators while other analysts such as Gerald Appel, Ned Dav...

AUTHOR: Nelson FreeburgDATE: FEB1995

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• Are Your Inputs Correlated? by Clifford J. Sherry, Ph.D.

  ARTICLE SYNOPSIS ...Are Your Inputs Correlated? by Clifford J. Sherry, Ph.D. If you use neural nets to model the behavior of equity markets in an effort to develop a trading strategy, it's likely that your model has multiple inputs. You may very well find that two or more of your inputs are cross-correlated. Basic modeling theory suggests that you should avoid inputs that contain significant cross-correlations. If two of the inputs to your model were perfectly correlated, then removing one of them should have no impact on your model's efficiency. On the other hand, if the correlation is not perfect and removing...

AUTHOR: Clifford J. Sherry, Ph.D.DATE: FEB1995

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• Bullish/Bearish Percentages and the DJIA by Christopher Cadbury

  ARTICLE SYNOPSIS ...Bullish/Bearish Percentages and the DJIA by Christopher C. Cadbury Curious about how state of mind plays a role in trading? This author has studied investment surveys that detail bullish and bearish states of mind of advisors and investors and he has identified patterns that indicate trading opportunities for stocks and stock indices. Bullish and bearish percentages of investment sentiment surveys are widely used to predict the direction of the stock market. The readings for a given week are considered to be contrary indicators. A high weekly percentage of bulls or low weekly percentage of ...

AUTHOR: Christopher CadburyDATE: FEB1995

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• Centered Trading by Ari Kiev, MD

  ARTICLE SYNOPSIS ...Centered Trading by Ari Kiev, MD Successful trading requires the willingness to commit to specific objectives. Here, psychiatrist Ari Kiev explains how to center your state of mind to optimize your trading. Successful trading requires the willingness to commit to specific objectives, the skill to manage emotion and fear and the discipline to adhere to your trading strategy. The successful trader can juggle these complex tasks by making use of psychological skills to reduce anxiety and tension and decrease the impact of distracting internal and external stimuli. One of the most critical skil...

AUTHOR: Ari Kiev, M.D.DATE: FEB1995

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• Letters to S&C

  ARTICLE SYNOPSIS ...Letters to S&C Compliments, data information and spirituality are discussed in this month's letters....

AUTHOR: Technical Analysis, Inc.DATE: FEB1995

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• Leverage and Equities by J.M. Malley

  ARTICLE SYNOPSIS ...Leverage and Equities by J.M. Malley Here's how to find the appropriate leverage for stock trading and researching leverage with a simulated portfolio. Deep discount brokerages are competing actively for customers, reducing commissions drastically and cutting margin rates. Obviously, the direct savings are valuable to active traders. Less obviously, the reduced fees could alter a trader's use of leverage. In this article I'm going to develop a technique for analyzing the use of leverage in common stock trading. I'm also going to demonstrate that reduced trading costs could make leverage att...

AUTHOR: J.M. MalleyDATE: FEB1995

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• Mary Pugh of Pugh Capital Management by Thom Hartle

  ARTICLE SYNOPSIS ...Mary Pugh of Pugh Capital Management by Thom Hartle The year 1994 will be known for the debacle in the derivatives markets. But what are these instruments that seem to have left a number of money managers holding the proverbial bag? To answer this question and others, we spoke to Mary Pugh, former senior vice president of Washington Mutual Savings Bank and now a fixed-income money manager in Seattle, WA. We spoke to Pugh about the mortgage-backed securities market, how it works, what the instruments derived from mortgages are all about and more. Q: Mary, let's start with your background. A...

AUTHOR: Thom HartleDATE: FEB1995

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• SIDEBAR: Calculating leverage and simulated trading

  ARTICLE SYNOPSIS ...Sidebar: Calculating leverage and simulated trading The following explanation uses a Microsoft Excel 4.0 spreadsheet calculating final equity versus leverage and simulated trading. Referring to Figure 1 from the article, the values placed in the spreadsheet for columns A to H are identified by the titles at the tops of the columns....

AUTHOR: Technical Analysis, Inc.DATE: FEB1995

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• SIDEBAR: Calculating the mean, standard deviation and cumulative

  ARTICLE SYNOPSIS ...Sidebar: Calculating the mean, standard deviation and cumulative probability density functions. Calculating the mean of a series of numbers is the same as calculating the average of a series of numbers. First, sum the numbers together and divide by the total amount of numbers (n)....

AUTHOR: Technical Analysis, Inc.DATE: FEB1995

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• Statistically Positioned Trend Channels by Bob McCullough

  ARTICLE SYNOPSIS ...Statistically Positioned Trend Channels by Bob McCullough Trend channels are a method by which to identify the outer boundaries of a trend. A number of methods are based on the technician's judgment to identify the components of a trend channel. Here's one method that reduces the need for seasoned judgment by using two statistical methods to determine the components of a trend channel. Trendlines are among the oldest and most useful tools in technical analysis. However, drawing them can sometimes be a very subjective process, and frequently, they simply don't work when an analyst is trying ...

AUTHOR: Bob McCulloughDATE: FEB1995

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• Traders' Tips

  ARTICLE SYNOPSIS ...Traders' Tips The following responds to numerous requests to explain how I create the bar charts with an indicator using Microsoft Excel 4. This Traders' Tips is based on the article ""Statistically Positioned Trend Channels"" by Bob McCullough....

AUTHOR: Technical Analysis, Inc.DATE: FEB1995