Article Archive For
MAY2004
-
Better Returns With Single-Stock Futures by Jeffrey P. Seyler
ARTICLE SYNOPSIS ...Better Returns With Single-Stock Futures by Jeffrey P. Seyler
What exactly are they, and how can we use them
to our advantage?
Launched on November 8, 2002,
security futures products have
been watched by many but
traded by few. The reasons for
this vary, but lack of volume
(and therefore liquidity) seems to be one of them. As with all new products,
volume takes time to develop, but these products
are becoming more popular little by little,
and will continue to increase in volume over
time. And in spite of low volume, reports are
that the two primary exchanges offering these
products (OneChic...
AUTHOR: Jeffrey P. SeylerDATE: MAY2004SUBJECT: Basic Techniques
-
Books For Traders by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Books For Traders by Technical Analysis, Inc.
This article contains short one-paragraphic descriptions for the following recently published books:
? The Event-Trading Phenomenon
? Trade Like A Hedge Fund: 20 Successful, Uncorrelated Strategies & Techniques To Winning Profits
? An Investor's Guide To Trading Options
? The Dollar Crisis: Causes, Consequences, Cures
? Quantitative Trading Strategies
? Stikky Stock Charts
? The Retirement Savings Time Bomb ? And How To Defuse It: A Five-Step Action Plan For Protecting Your IRAs, 401(K)s, And Other Retirement Plans From Near Annihilation B...
AUTHOR: Technical Analysis, Inc.DATE: MAY2004SUBJECT: Books For Traders
-
Explore Your Options by Tom Gentile
ARTICLE SYNOPSIS ...Explore Your Options by Tom Gentile
COVERED CALLS
If I write a covered call for a stock I
bought at 30.50, am I allowed to place
a stop-loss price, say, 27.00, to protect
it from further decline? What happens
if the stop-loss price is triggered?
Although one of the components of
a covered call is the underlying stock,
it is still a spread, since it contains a
combination of both a long and a short
position. Most brokers do not place
stop orders on spreads. However, you
can probably place what is known as a
contingency order, in which the spread
is sold based on the stock price alone.
If, fo...
AUTHOR: Tom GentileDATE: MAY2004SUBJECT: Explore Your Options
-
Four Measures Of Market Volatility by Frederic Ruffy
ARTICLE SYNOPSIS ...Four Measures Of Market Volatility by Frederic Ruffy
How do you read the CBOE's new measures of volatility? Find
out here.
The CBOE volatility index (VIX) was last modified
in September 2003. The Chicago Board
Options Exchange (CBOE) reconstructed the
index ahead of a planned launch of options
and futures on the index. While the debut of these new options and futures products is expected in late
March 2004 (as of this writing in early March) pending
regulatory approval, the old VIX started appearing under the
symbol VXO, and the new formula began, continuing the ticker
symbol VIX.
Today, bo...
AUTHOR: Frederic RuffyDATE: MAY2004SUBJECT: Market Volatility
-
Interview: Understanding Intermarket Analysis With John J. Murphy by Matt Blackman
ARTICLE SYNOPSIS ...Interview: Understanding Intermarket Analysis With John J. Murphy by Matt Blackman
John Murphy has become a household name in the technical analysis
community. And how could he not? He was the technical analyst for
CNBC for seven years, and is the cofounder and president of
MurphyMorris.com. His book Technical Analysis Of The Financial
Markets, first written in the late 1980s, has become a classic, and its
latest edition is required reading for those studying for the Market
Technicians Association's Chartered Market Technicians (CMT) designation.
He is also the author of The Visual Investor a...
AUTHOR: Matt BlackmanDATE: MAY2004SUBJECT: Interview
-
Letters To S&C by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Letters To S&C by Technical Analysis, Inc.
EMAIL SPAM
Editor,
I received a piece of spam
today that mentions your
magazine. I am contacting
you to enlist your aid in
battling such spam.
Inasmuch as I resent every uninvited
email contact such as this, and think that
spammers ought to be banished from
civilized society, I urge you to adopt the
editorial position that this person and
his company are no longer welcome in
the pages of STOCKS & COMMODITIES
magazine, and that he is also no longer
entitled to use your logo in his ads. Such
use by him reflects badly on your publication
due to guilt ...
AUTHOR: Technical Analysis, Inc.DATE: MAY2004SUBJECT: Letters To S&C
Opening Position by Jayanthi Gopalakrishnan
AUTHOR: Jayanthi GopalakrishnanDATE: MAY2004SUBJECT: Opening Position
Phase Change Index by M.H. Pee
AUTHOR: M.H. PeeDATE: MAY2004SUBJECT: Indicators
-
Price + Volume = Price Movement by Tim Ord
ARTICLE SYNOPSIS ...Price + Volume = Price Movement by Tim Ord
Here's how you can use price and volume to determine buy and
sell signals.
I use a lot of different indicators and methods,
but one that has been consistently successful
is the price/volume relationship at support
and resistance levels. Support or resistance
areas occur at previous highs and lows. Prices
bounce off previous highs and lows and develop
trading ranges. I will show you how
price and volume react to previous highs and
lows, and why price pushes through or reverses
at these points.
SWINGS
Previous highs and lows in a stock or index defi...
AUTHOR: Tim OrdDATE: MAY2004SUBJECT: Classic Techniques
-
Ranked Relative Strength by Jeff Parent
ARTICLE SYNOPSIS ...Ranked Relative Strength by Jeff Parent
How do you know which sectors to trade?
Here's a system that will identify the
strongest sectors so you know what you
should be chasing.
When Charles Dow started
recording his average in
the late 19th century (Figure
1), the markets were
essentially a one-horse
show. Transportation-related
stocks dominated
the blue-chip segment of
the markets and were the most actively traded. Dow used them as
a proxy to gauge economic conditions.
He measured the simple average price of
a basket of predominantly railroad stocks
and compared the result to the 100 level....
AUTHOR: Jeff ParentDATE: MAY2004SUBJECT: New Techniques
-
Sidebar: Phase Change Index by M.H. Pee
ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:5 (34-35): Sidebar: Excel codes for PCI by M.H. Pee
EXCEL CODES FOR PCI
In this section, I will provide the Excel codes for the 35-day PCI. Sidebar Figure 1 (following page) shows all the required calculations for the 35-day PCI on the euro between January 2, 2002, and April 12, 2002, inclusively. The data is represented in continuous contract format. The date, open, high, low, and close are entered into columns A, B, C, D, and E, respectively. The date is represented using eight digits, with the first four representing the year, the next two the month, and the last...
AUTHOR: M.H. PeeDATE: MAY2004SUBJECT: Sidebar
-
The Bad, The Good, And The Profitable by John L. Momsen
ARTICLE SYNOPSIS ...The Bad, The Good, And The Profitable by John L. Momsen
Here's why you have to research your trades as thoroughly
as possible.
In February 2003, I received an intriguing email
from one of my friends. He said he had discovered
a nearly perfect, 94% profitable, seasonal
trade in the orange juice market and wanted my
opinion on it. This certainly piqued my interest:
I've been a trader of seasonal commodity trades for more than 20 years, and I've written both books and
articles on the subject. So what was this seasonal trade? "Buy
May orange juice on the close of February 26 and exit the
trade o...
AUTHOR: John L. MomsenDATE: MAY2004SUBJECT: Real World
-
The Inverse Fisher Transform by John F. Ehlers
ARTICLE SYNOPSIS ...The Inverse Fisher Transform by John F. Ehlers
How often have you been indecisive about entering
or exiting a trade? Here's one way to get a clear
indication.
The purpose of technical indicators is to
help time your decisions to buy or sell.
Ideally, their signals should be clear
and unequivocal, but more often than not you will find yourself crossing your fingers
before pulling the trigger. Even if you have placed
only a few trades, you will have experienced this.
INVERSE FISHER TRANSFORM
In this article I will show you a way to program your
oscillator-type indicators to give clear, black...
AUTHOR: John F. EhlersDATE: MAY2004SUBJECT: Cycles
-
Traders' Resource: Advisory Services
ARTICLE SYNOPSIS ...Traders' Resource: Advisory Services
Advisory services are all over the place,
as this listing shows. You have plenty of
choice and plenty of price points to
consider.
One key factor is whether the outfit
you're checking out is a Registered Investment
Advisor (RIA) or a registered
Commodity Trading Advisor (CTA).
Though it doesn't weed out the foolish advice, the act of registration puts the person or persons under
the government's scrutiny. In this listing, filled in by the
companies themselves, you'll find those who have RIA and/or CTA certifications as well as those who are nonregistered
...
AUTHOR: Technical Analysis, Inc.DATE: MAY2004SUBJECT: Traders' Resources
-
Traders' Tips by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Traders' Tips by Technical Analysis, Inc.
This month's tips contain code for John Ehlers' Inverse Fisher Transform in the following software programs: TradeStation, MetaStock, AmiBroker, WealthLab, TradingSolutions, NeuroShell Trader, AIQ TradingExpert, TickQuest, Prophet, StockWiz, Aspen Graphics, Financial Data Calculator, TechniFilter Plus, and eSignal....
AUTHOR: Technical Analysis, Inc.DATE: MAY2004SUBJECT: Traders' Tips
-
Websites For Traders: 888Options.com by Bruce Faber
ARTICLE SYNOPSIS ...Websites For Traders: 888Options.com by Bruce Faber
888OPTIONS.COM
This site could have been named
"AllAboutOptions.com" or "Everything-You-Wanted-To-Know-About-Options-But-Were-Afraid-To-Ask.com," but it would have been more
difficult to find a phone number that
matched.
The Options Industry Council (OIC)
developed 888OPTIONS.com to educate
the investing public (and their brokers)
about the benefits and risks of exchangetraded
options. While options are highly
flexible, versatile, and often rewarding,
they are also complex, tricky, and risky.
In their continuing endeavor to educate
investo...
AUTHOR: Bruce R. FaberDATE: MAY2004SUBJECT: Websites For Traders
-
Websites For Traders: StockConsultant.com by David Penn
ARTICLE SYNOPSIS ...Websites For Traders: StockConsultant.com by David Penn
STOCKCONSULTANT.COM
How much information do you really want to know
about the stocks you are thinking about trading and
investing? This was the first reaction I had when I typed
Yahoo's stock symbol (YHOO) in the "enter symbol"
box of StockConsultant.com. With the click of a mouse,
StockConsultant.com produced a stock report for YHOO
that was as comprehensive as any I've come across on
the Internet.
Doubt it? Consider what you get: a multichart geared
toward intraday (15-minute) data, with daily last, change,
open, high, low and volume...
AUTHOR: David PennDATE: MAY2004SUBJECT: Websites For Traders
Working Money: ADX: An Indicator And Trading System by Ashwani Gujral
AUTHOR: Ashwani GujralDATE: MAY2004SUBJECT: Working Money
Working Money: Market Timing With Candlesticks by Steve Bigalow
AUTHOR: Stephen W. BigalowDATE: MAY2004SUBJECT: Working Money
Working Money: The Coming Confirmation? by David Penn
AUTHOR: David PennDATE: MAY2004SUBJECT: Working Money
Working Money: Volume-Weighted Moving Averages And The P&F by Paul Fell
AUTHOR: Paul FellDATE: MAY2004SUBJECT: Working Money