JAN 1989 STOCKS & COMMODITIES Magazine

Article Archive For JAN1989

Completing the DMI rules by Jim Summers

ARTICLE SYNOPSIS ...Completing the DMI rules by Jim Summers Finally, after these many months, the Lotus Command Language code to reproduce Wilder's Directional Movement Index system (DMI) reaches an end. In using Wilder's DMI to teach readers of Stocks & Commodities how to program Lotus, we've come a long way. Starting with the simplest of macros, we're now into programming at a fairly high level and have used a number of techniques, including debugging strategies. Recent comments by Dr. A.O.T. Fayiga (S&C, November 1988) show that different programming methods can reach the same goals, something affirmed by eve...

AUTHOR: Jim Summers, Ph.D.DATE: JAN1989

Into the Pit by Joseph Wilson

ARTICLE SYNOPSIS ...Into the Pit by Joseph Wilson In December 1985, I was approved for membership to the Chicago Mercantile Exchange. I obtained a membership to the Index and Options Market, which gave me the right to trade the S&P 500 futures. Let me digress for a moment. As you may already be aware, the S&P 500 futures have taken the brunt of the heat from the regulators who are looking for a scapegoat for the October 1987 crash in the stock market. I disagree with their criticisms, but that is another story. The ""big guys"" trade the futures market in two ways: first, as a hedge for the stock portfolios and...

AUTHOR: Joseph WilsonDATE: JAN1989

Letters To S&C

ARTICLE SYNOPSIS ...LETTERS TO S&C Optimization Editor, Several articles have appeared in S&C wherein optimization was discussed. I would like to discuss something I encountered at least six years ago when I first tried optimizing. Some of your readers may have had the same experience and can further comment on the subject. The best way to explain this subject may be by example. The example is extremely simple. It involves optimizing, in one of my programs, only two parameters--a decimal for an exponential average for buying and a decimal for an exponential average for selling. The buy decimal was stepped fro...

AUTHOR: Technical Analysis, Inc.DATE: JAN1989

Logarithmic point and figure charts by Luis Ballesca Loyo

ARTICLE SYNOPSIS ...Logarithmic point and figure charts by Luis Ballesca Loyo During the early development of technical analysis, almost all types of graphing methods used the arithmetic values of prices for charting. Not so long ago, it became a common practice to construct charts or graphs using a logarithmic scale. Experience has shown me that this proportional scale has many advantages over the arithmetic method when it comes to analyzing price formations and market tendencies. Actually, using point and figure charting clearly shows the difference between graphing on the arithmetic scale and graphing on log...

AUTHOR: Luis Ballesca-LoyoDATE: JAN1989

Options: Let price come to you by Jerry Kopf

ARTICLE SYNOPSIS ...Options: Let price come to you by Jerry Kopf The average retail trader's first option transaction is often profitable--but rarely do rookie option traders know the actual reason behind their profits. Call it beginner's luck. If they win at first, they think they are walking on water. They annualize one week's return and start planning an early semi-retirement. Once luck ends, a newcomer's limited experience along with the swiftness of price movement causes a rash of painful losses. The undeniable fact is there is no quick method to learn to trade well and consistently be on the plus side. Cal...

AUTHOR: Jerry KopfDATE: JAN1989

Stock hedge portfolios: A strategy for all seasons by Larry Christy

ARTICLE SYNOPSIS ...Stock hedge portfolios: A strategy for all seasons by Larry Christy If you're looking for a conservative way to make substantial profits in any kind of market environment, you may want to consider common stock hedge portfolios. By balancing an equal amount of your capital in long and short stock positions, you can reduce market risk and take advantage of the ability of some stocks to outperform other stocks. For an example of the theory behind this strategy, just check The Wall Street Journal's listing of yesterday's biggest percentage gainers and losers among common stocks. On any given day...

AUTHOR: Larry ChristyDATE: JAN1989

Technical Index measures market breadth by William Mason

ARTICLE SYNOPSIS ...Technical Index measures market breadth by William Mason There are numerous driving forces in the stock market such as inflation, interest rates, earnings, trade deficit, fear and greed. The final output from the driving forces behind the stock market are the various indices such as the NYSE Composite. Dow Jones Industrial Average, S&P 500. These are fine indices for measuring the market results, but quite removed from the input side of the equation. Some technicians try to build models around these variables with varying degrees of success. What I wanted, instead, was the intermediate or tr...

AUTHOR: William MasonDATE: JAN1989

The Wall Street Week index by Arthur A. Merrill

ARTICLE SYNOPSIS ...The Wall Street Week index by Arthur A. Merrill Every six months I have been checking the accuracy of more than 40 indicators over a span of several years. On the last test, the indicator that came out on top was the Wall Street Week Technical Market Indicator (WSW Index) reported on the Wall Street Week public television program. In the test, the scores are in the form of a batting average. Each indicator is asked each week whether it is bullish or bearish, and the number of times this opinion is right or wrong is determined by the direction of the market in the next 13 weeks, six months or...

AUTHOR: Arthur A. Merrill, C.M.T.DATE: JAN1989