MAR 1997 STOCKS & COMMODITIES Magazine

Article Archive For MAR1997

A New Utility Average Stock Market System by Dennis Meyers, Ph.D.

ARTICLE SYNOPSIS ...A New Utility Average Stock Market System by Dennis Meyers, Ph.D. This month, Meyers uses a daily indicator based on the Dow Jones Utility Average as a market timing system for the Standard & Poor's 500 index. In the August 1995 STOCKS & COMMODITIES, I presented a stock market timing system that I called the utility stock market indicator. This system uses the weekly relative strength of the Dow Jones Utility Average (DJUA) to the Standard & Poor's 500 index to derive a stock market system. The weekly model had a number of weaknesses that we will attempt to resolve. Before we start, remembe...

AUTHOR: Dennis Meyers, Ph.D.DATE: MAR1997SUBJECT: Indicators

Alex Saitta of Salomon Brothers by Thom Hartle

ARTICLE SYNOPSIS ...Alex Saitta of Salomon Brothers by Thom Hartle Seasoned equity traders know that interest rates are a key force behind the direction of the stock market. The term ""interest rates,"" of course, is really a catch-all phrase for a group of markets that professional traders refer to as fixed income, and the most common group of those is the Treasury bond market. So what are some features that any technically based trader or investor should know about the workings of the bond market? To find out, Stocks & Commodities Editor Thom Hartle spoke with Alex Saitta, technical analyst and vice president ...

AUTHOR: Thom HartleDATE: MAR1997SUBJECT: Interview

Market Timing and Candlesticks by Gary S. Wagner and Bradley L. Matheny

ARTICLE SYNOPSIS ...Market Timing and Candlesticks by Gary S. Wagner and Bradley L. Matheny When to buy and what? Those are the questions that have plagued market participants the world over. Here's a proposal on how to use candlesticks to time the market. To be successful, you have to be in the right place at the right time. There are two parts to that adage, both equally important; the first refers to location, while the second relates to timing. For stock traders, this saying is especially apropos if you consider the location in question to be the selection of which stocks to buy, and the timing in question...

AUTHOR: Gary S. Wagner and Bradley L. MathenyDATE: MAR1997SUBJECT: Trading Techniques

On Building Point & Figure Charts by Daryl Guppy

ARTICLE SYNOPSIS ...On Building Point & Figure Charts by Daryl Guppy Point & figure charting is one of the classic techniques of technical analysis. Here's a refresher look at the basics. Point and figure (P&F) charting concentrates on price and its changes by eliminating other elements such as time and volume. Key chart features such as support, resistance and trendlines emerge clearly, suggesting entries based on breakout of trading ranges; risk management levels due to trendline breaks; and profit targets using counts. The technique is popular because it is simple. Point & figure charting uses price data wi...

AUTHOR: Daryl GuppyDATE: MAR1997SUBJECT: Classic Techniques

Protecting Yourself in Tough Markets by Van K. Tharp, Ph.D.

ARTICLE SYNOPSIS ...Protecting Yourself in Tough Markets by Van K. Tharp, Ph.D. Things may be going great for you now, but what happens when the tide turns and you face hard times in the market? Here's how to protect yourself. Recently, I encountered a man who was close to suicidal. Three weeks prior, his Keogh account had been worth about $1.3 million. Unfortunately, as a result of the mini-technology crash in NASDAQ, the value of his account had plummetted, ending up only worth about $400,000 by the time we met. Then, he had watched one stock drop from $200 per share to about $50 per share before he got out ...

AUTHOR: Van K. Tharp, Ph.D.DATE: MAR1997SUBJECT: Basic Techniques

Timing a Stock Using the Regression Oscillator by Richard Goedde

ARTICLE SYNOPSIS ...Timing a Stock Using the Regression Oscillator by Richard Goedde Numerous techniques for timing transactions are available to the technical trader. One popular method uses the difference between the market trend and the price. Market timing strategies can be developed based on the market oscillating above and below the trend. Here are the basics of using an oscillator for timing a stock. In investment analysis, an oscillator is a mathematical tool used to identify turning points in prices and is useful in timing the purchase and sale of a security. The regression oscillator (RO) fluctuates a...

AUTHOR: Richard GoeddeDATE: MAR1997SUBJECT: Novice Traders' Notebook

Traders' Tips

ARTICLE SYNOPSIS ...Traders' Tips Here is this month's selection of Traders' Tips, contributed by various developers of technical analysis software to help readers more easily implement some of the strategies presented. Code has been provided for Richard Goedde's article, "Market timing with the regression oscillator," in MetaStock; Dennis Meyers' article ""A new utility average tock market system"" in TradeStation, TechniFilter Plus and WAVEWISE; and a technique called STARC bands in SMARTrader....

AUTHOR: Technical Analysis, Inc.DATE: MAR1997

V.15:3 (122-124) Scenario Trading by Ruth Barrons Roosevelt

ARTICLE SYNOPSIS ...Scenario Trading by Ruth Barrons Roosevelt Traders can get caught up in a scenario in which they believe the market will unfold. Becoming a neutral observer may be the best strategy. Scenario trading is trading in accordance with a dominant idea or story. It can be very dangerous-- or it can make you a fortune. The scenario acts as an integrating theme and it can dominate your thinking. That theme could be fundamental, technical or personal in nature, and it colors your thought processes. And it definitely affects your trading. Scenarios are seductive. We are mesmerized by stories. We live ...

AUTHOR: Ruth Barrons RooseveltDATE: MAR1997SUBJECT: Trading Psychology

V15:3: Letters to S&C

ARTICLE SYNOPSIS ...Letters To S&C Letters this month include one responding to Jeffrey Katz and Donna McCormick's December 1996 article titled "A rule-based approach to trading," and the Dennis Meyer article published in the January 1997 issue....

AUTHOR: Technical Analysis, Inc.DATE: MAR1997