JUL 1994 STOCKS & COMMODITIES Magazine

Article Archive For JUL1994

First-Hour Breakout System by Malcolm McNutt

ARTICLE SYNOPSIS ...First-Hour Breakout System by Malcolm McNutt Here's a mechanical trading system for the Standard & Poor's 500 futures market. New traders are often advised to find a method or technique with which to trade and then refine the method down to a set of rules and implement the method in the market of choice. Taking this to heart, I put together a mechanical trading system based on material presented by George Angell in Advanced Breakthroughs in Day Trading. This method was designed to trade the Standard & Poor's 500 futures market. In developing this system, hundreds of methods and thousands of...

AUTHOR: Malcolm McNuttDATE: JUL1994

Group Relative Strength Analysis by Jaime V. Behar

ARTICLE SYNOPSIS ...Group Relative Strength Analysis by Jaime V. Behar This equity trader and computer consultant presents an intriguing use of statistical analysis to measure the performance of stock groups for the purposes of asset allocation. To even the most casual of market observers, it soon becomes clear that stocks tend to move in groups. Whether this is due to the business cycle, industry fundamentals or investor perception, as money flows in and out of groups, so do the fortunes of the stocks within the groups. Many trading disciplines use group strength as a key ingredient in their methodology. The ...

AUTHOR: Jaime V. BeharDATE: JUL1994

James B. Stack, Big Sky Investor by Thom Hartle

ARTICLE SYNOPSIS ...Interview: James B. Stack, Big Sky Investor by Thom Hartle Thomas Wolfe was wrong: You can go home again. Frank Russell did it when he returned to Tacoma, WA, after he established his well-regarded investment firm in New York, and James Stack did it when he returned to Montana to begin his well-regarded investing newsletters. James B. Stack, president of InvesTech Research, publishes InvesTech Market Analyst and InvesTech Mutual Fund Advisory newsletters. Here, Stack describes how he combines economic, monetary and technical analysis and also shares his evaluation of the current market. Q: ...

AUTHOR: Thom HartleDATE: JUL1994

On-Balance Volume Indicator by Bruce R. Faber

ARTICLE SYNOPSIS ...Group Relative Strength Analysis by Jaime V. Behar Of all the factors in trading that technicians learn to analyze, surely price and volume are the first two. Here, the basics behind this classic technical tool are explained. To even the most casual of market observers, it soon becomes clear that stocks tend to move in groups. Whether this is due to the business cycle, industry fundamentals or investor perception, as money flows in and out of groups, so do the fortunes of the stocks within the groups. Many trading disciplines use group strength as a key ingredient in their methodology. The...

AUTHOR: Bruce R. FaberDATE: JUL1994

SIDEBAR: Chaikin's Money Flow Indicator

ARTICLE SYNOPSIS ...SIDEBAR: Chaikin's Money Flow Indicator This sidebar providesChaikin's basic money flow formula and sample code for MetaStock and TradeStation languages. The first step to calculating the 21-day money flow indicator is to calculate the raw one-day accumulation/distribution indicator....

AUTHOR: Technical Analysis, Inc.DATE: JUL1994

The Option Premium Ratio by Christopher Cadbury

ARTICLE SYNOPSIS ...The Option Premium Ratio by Christopher Cadbury Christopher Cadbury, member of the American Stock Exchange and book author, explains a sentiment indicator generated from the equity options market that identifies trading opportunities in the stock market. Monitoring market sentiment data is a popular technique today because investors can use the data for market forecasting. One popular sentiment measure is derived from investment sentiment surveys, while another sentiment indicator is the ratio of put trading volume to call trading volume. A lesser-known measure of sentiment is the option pr...

AUTHOR: Christopher CadburyDATE: JUL1994

Trader's Tips

ARTICLE SYNOPSIS ...Trader's Tips This month's Traders' Tips creates an on-balance volume line with a 40-period Bollinger Band in a spreadsheet as discussed in the interview with Gilbert Raff. Code for Bollinger Band is also provided for MetaStock and TradeStation....

AUTHOR: Technical Analysis, Inc.DATE: JUL1994

Trading A Stock Using Technical Analysis by Thom Hartle

ARTICLE SYNOPSIS ...Trading A Stock Using Technical Analysis by Thom Hartle The search goes on for key indicators to help traders find profitable opportunities in the market. Here, Stocks & Commodities Editor Thom Hartle provides an example of a recent trade in a stock based on the foundations of technical analysis, price and volume. Technical analysis has two purposes. The first is to develop an idea about where a market is heading, answering the question of what is happening. For example, if Treasury bond and Treasury bill yields are rising, indicated by a series of higher highs and higher lows, then you sho...

AUTHOR: Thom HartleDATE: JUL1994