Article Archive For
FEB2008
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Books For Traders by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Books For Traders by Technical Analysis, Inc.
? Stock Trader's Almanac 2008
? Commodity Trader's Almanac 2008
? Contrarian Ripple Trading
? The Forex Trading
Course: A Self-Study
Guide To Becoming A
Successful Currency
Trader
? Invest Like A Shark
? The Little Book That Makes You Rich
? Millionaire Traders:
How Everyday
People Are Beating
Wall Street At Its Own
Game...
AUTHOR: Technical Analysis, Inc.DATE: FEB2008SUBJECT: Books for Traders
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Buying Puts And Calls With PROVEST by Jay Kaeppel
ARTICLE SYNOPSIS ...Buying Puts And Calls With PROVEST by Jay Kappel
The second article in this series discusses the details of the
PROVEST strategy and how you can apply it to trade calls and/
or puts.
As discussed in the first part of this series, several
key factors should be considered in determining
the best option trading strategy to use at
any given point in time for any given security.
Likewise, these criteria can also be used to zero in on the best option or options to trade in executing a
particular strategy. Selecting the proper strategy involves
knowing what to look for in terms of the following var...
AUTHOR: Jay KaeppelDATE: FEB2008SUBJECT: Options
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Can Technical Factors Gauge What Works In The Stock Market? by Mark Vakkur
ARTICLE SYNOPSIS ...Can Technical Factors Gauge What Works In The Stock Market? by Mark Vakkur
In the second part of this series
we look at the technical factors
you can use to gauge the
magnitude and direction of the
trends in the S&P 500.
Using only month-tomonth,
close-to-close
figures, it is difficult
to find any meaningful,
consistent information in the price performance of the Standard
& Poor's 500 itself by using
technical analysis. This does not
mean that technical analysis is
useless, just that when looking at
the monthly trend it is difficult to
find exploitable patterns.
ARE DOWN YEARS
FOLLOWED BY R...
AUTHOR: Mark Vakkur, M.D.DATE: FEB2008SUBJECT: Cycles
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Explore Your Options by Tom Gentile
ARTICLE SYNOPSIS ...Explore Your Options by Tom Gentile
SEASONALITY
I know seasonality is an important factor
in the commodities markets. Is there
any way to play seasonality in the stock
market? Can you give an example?
Important seasonal patterns exist, not
just in the commodities market, but in
the stock market as well. One seasonal
trend that you might have seen in the
commodities market is natural gas.
Prices move higher before the winter
because colder weather creates an increase
in demand for the commodity.
As temperatures drop, consumers need
more heat and also more natural gas.
In the stock market, t...
AUTHOR: Tom GentileDATE: FEB2008
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Forex Focus: Point & Figure For Forex by James Chen, CTA
ARTICLE SYNOPSIS ...Forex Focus: Point & Figure For Forex by James Chen, CTA
Here's an age-old charting technique that you can use
effectively in the foreign exchange markets.
To trade using point & figure charts is to trade based on
pure price action. One of the best-kept secrets about this granddaddy of technical analysis charting methods lies in
the fact that it is ideally suited to analyzing and trading the
forex market.
THE BASICS
Point & figure (P&F) charts originated in the 19th century as
an innovative method for graphically plotting price action in
the financial markets. One of the unique aspects of ...
AUTHOR: James Chen, CTADATE: FEB2008SUBJECT: Forex Focus
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Futures For You by Dan O'Neil
ARTICLE SYNOPSIS ...Futures For You by Dan O'Neil
WORKING THE SYSTEM
Do you believe the claim that some
system marketers use that their system
works across all time frames and all
types of futures (emini indexes, grains,
softs, energies, and so forth)? Have you
ever seen or heard anything that indicates
that this could be true?--Randy Glick
Before we jump into the verity of
published trading results, let's start by
taking a look at just what a trading
system is. Trading systems -- also
known as "black boxes" -- use a set of
rules or computer algorithms to decide
when and what to buy or sell, with exit
and entry c...
AUTHOR: Dan O'NeilDATE: FEB2008SUBJECT: Futures For You
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How Secure Are Your Securities? by John A. Sarkett
ARTICLE SYNOPSIS ...How Secure Are Your Securities? by John A. Sarkett
How well protected are your stocks and options in
your brokerage account?
Two classic Zen koans and one modern
riddle you may never have considered: What
is the sound of one hand clapping? Does a
dog have Buddha nature? And how well protected
are the stocks and options in your brokerage
account -- not their value, which fluctuates, but
their very existence? In peaceful financial times,
that last query rarely arises.
These are not peaceful financial times. The
subprime shakeout has caused bank runs (Countrywide,
Northern Rock), toppled CEOs (...
AUTHOR: John A. SarkettDATE: FEB2008SUBJECT: Real World
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Interview The World Of Commodities With Carley Garner by Jayanthi Gopalakrishnan
ARTICLE SYNOPSIS ...Interview The World Of Commodities With Carley Garner by Jayanthi Gopalakrishnan
Alaron broker and analyst Carley Garner has been involved with the markets for
years and is actively educating traders through web content and online seminars
at CommodityTradingSchool.com and through the web newsletters she writes
(The Dow/NASDAQ Report and The Bond Report). She has just cowritten with
partner Paul Brittain Optionology 101, a guide to option trading, which is
scheduled to be published later this year by FT Press.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan conducted this
interview with ...
AUTHOR: Jayanthi GopalakrishnanDATE: FEB2008SUBJECT: Interview
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Letters to S&C by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Letters to S&C by Technical Analysis, Inc.
SHORT-PERIOD RSI
Editor,
Regarding the November 2007 S&C article
"Does The RSI Give You An Edge?"
by Larry Connors and Ashton Dorkins, I
am wondering if the short period RSI was
tested against the S&P 500 index or any
other index or commodity. - GREG COSTEENS
The article mentions they looked at more
than eight million trades the authors made
from January 1, 1995, to December 31,
2006. It doesn't specifically mention they
conducted the test on the S&P 500 or any
commodity. It's likely the results will be
similar. If you have access to the data, it...
AUTHOR: Technical Analysis, Inc.DATE: FEB2008SUBJECT: Letters To S&C
Opening Position by Jayanthi Gopalakrishnan
AUTHOR: Jayanthi GopalakrishnanDATE: FEB2008SUBJECT: Opening Position
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Q&A by Don Bright
ARTICLE SYNOPSIS ...Q&A by Don Bright
MESQUITE RETREAT
Hello, STOCKS & COMMODITIES readers!
Bright Trading recently held one of
our retreats for our traders in Mesquite,
NV. We had approximately 70 attendees,
including some "non-Bright" traders,
who seemed to find the weekend
both educational and entertaining. Traders
asking other traders questions is always
interesting and of great value to the
whole group, including the Bright family.
I'm going to paraphrase some requests
and questions, along with a variety
of answers.
My request is for some informal presentations
from traders -- just a few minutes
from a few...
AUTHOR: Don BrightDATE: FEB2008SUBJECT: Q&A
Traders' Resource: Exchanges by Technical Analysis, Inc.
AUTHOR: Technical Analysis, Inc.DATE: FEB2008SUBJECT: Traders' Resource
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Traders' Tips by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Traders' Tips by Technical Analysis, Inc.
Editor's note: This month's Traders'
Tips are based on Sylvain
Vervoort's article in this issue, "Trading
Medium-Term Divergences."
Code written for MetaStock is already
provided in the article's
sidebars. Code for other programs
is presented here.
Readers will find our Traders' Tips section in its entirety
at the STOCKS & COMMODITIES website at www.Traders.com
in the Traders' Tips area, from where the code can be copied
and pasted into the appropriate program. In addition, the
code for each program is usually available at the respective
software com...
AUTHOR: Technical Analysis, Inc.DATE: FEB2008SUBJECT: Traders' Tips
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Trading Medium-Term Divergences by Sylvain Vervoort
ARTICLE SYNOPSIS ...Trading Medium-Term Divergences by Sylvain Vervoort
Detect medium-term divergences by using the
zero-lagging exponential moving average,
support and resistance lines, and trendlines.
When a stock price and an oscillator
move in the same direction it's
known as a convergence. When
price and oscillator move in opposite directions, it's known as a divergence. In
looking at the lows of the oscillator and comparing
them with the lows in price, we can define
three different situations (see Figure 1):
■ When the price and oscillator make higher
or equal bottoms, they converge. Until there
is...
AUTHOR: Sylvain VervoortDATE: FEB2008SUBJECT: Trading Systems
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Trading With The Directional Ratio by John Jay Norris
ARTICLE SYNOPSIS ...Trading With The Directional Ratio by John "Jay" Norris
Whether you trade long term, short term, or intermediate term,
you need to know the direction of the trend. Here's a simple way
to find out.
If you are an active trader, or if you manage traders,
you probably already know the importance
of differentiating between a "trend trade" and a
"countertrend trade." By using the highs and
lows on the chart to determine overall direction, it should be a simple matter to determine a market's current
stance for a particular time period, be it 15 candles or 60.
However, once you add up the long-, int...
AUTHOR: John Jay NorrisDATE: FEB2008SUBJECT: Indicators
WM: Elections As The Most Powerful Short-Term Cycle by Matt Blackman
AUTHOR: Matt BlackmanDATE: FEB2008SUBJECT: Novice Traders' Notebook
Working Money: Alternative Energy by Paolo Pezzutti
AUTHOR: Paolo PezzuttiDATE: FEB2008SUBJECT: Working Money
Working Money: Confirmation Destination by David Penn
AUTHOR: David PennDATE: FEB2008SUBJECT: Dow Theory