NOV 1985 STOCKS & COMMODITIES Magazine

Article Archive For NOV1985

A modification of Wilder's directional movement system by Thomas P. Drinka and Steven L. Kille

ARTICLE SYNOPSIS ...A modification of Wilder's directional movement system by Thomas P. Drinka and Steven L. Kille In his New Concepts in Technical Trading Systems (Copyright 1978) J. Welles Wilder Jr. introduced his directional movement system with the following: ""Directional movement is the most fascinating concept I have studied . . . I have probably spent more time studying directional movement than any other concept. Certainly one of my most satisfying achievements was the day I was actually able to reduce this concept to an absolute mathematical equation."" The Directional Movement System The Direction...

AUTHOR: Thomas P. Drinka and Steven L. KilleDATE: NOV1985

A simple analogue of auto- and cross-correlation by Clifford J. Sherry

ARTICLE SYNOPSIS ...A simple analogue of auto- and cross-correlation by Clifford J. Sherry If you trade commodities or stocks and if you expect to make a profit, you are making the tacit assumption that you can predict the future price of your commodity or stock. Traders often need to know if time series of commodity or stock prices are cyclic and, if they are, the extent of the cycle. It is also important to know if two time series are interdependent. Interdependency can be between two commodity prices, if you want to play the spreads, or a series of commodity prices and some other time series, such as the Com...

AUTHOR: Clifford J. Sherry, Ph.D.DATE: NOV1985

Benguet revisited by Richard Maturi

ARTICLE SYNOPSIS ...Benguet revisited by Richard Maturi The November/December 1983 issue of Technical Analysis of Stocks and Commodities carried an article of mine entitled ""Gold Stocks"" which addressed the following question: ""Can the average investor successfully participate in the gold market without having to deal with the problems associated with owning precious metals?"" In the article, I detailed my successful trading strategy of buying Benguet, a NYSE gold mining stock during the period March 1982 through March 1983. Benguet is a producer of gold as well as copper and chromite and its stock can be t...

AUTHOR: Richard MaturiDATE: NOV1985

Covered calls by Richard Maturi

ARTICLE SYNOPSIS ...Covered calls by Richard Maturi Sophisticated and neophyte investors alike can benefit from option trading. Though options are typically viewed by many investors as speculative, options can be a very effective conservative investment tool. A stock option gives the holder the right to buy or sell the underlying security at a specific price during a specific period of time. A call option provides the right to buy the specified stock, while a put option provides the right to sell the specified stock. The exercise price of the option is called the ""striking price."" The ""covered call"" option...

AUTHOR: Richard MaturiDATE: NOV1985

Discount broker blues by Dan Weinberg

ARTICLE SYNOPSIS ...Discount broker blues by Dan Weinberg ""Do-it-yourself investing is easy!"" --a discount broker ad ""There's a sucker born every minute.""--P.T. Barnum ""I really thought I knew what I was doing!""--Anonymous Hook All your life you've scoffed at people who read Barron's or the Wall Street Journal . They're just money-grubbing capitalists who are already rich and enjoy checking out the ups and downs of their pet corporations to see if they can get even richer. Not like the ordinary working man, someone like you, who has to work hard for his take-home pay. It's just a simple case of the ""have...

AUTHOR: Dan WeinbergDATE: NOV1985

AUTHOR: Technical Analysis, Inc.DATE: NOV1985

Letters to Technical Analysis

ARTICLE SYNOPSIS ...Letters to Technical Analysis Dear Dr. Warren, The purpose of this letter is to request your help, as the author, to obtain a working version of the program for Maximum Entropy Forecasting which appeared in the December, 1984 issue of Technical Analysis of Stocks & Commodities. I have become interested in using a technique such as maximum entropy to evaluate cross-over points to try to eliminate whip-sawing. The initial analysis section published in the July/ August issue seems to be functioning with the corrections. However, the later section for forecasting from the December issue appears ...

AUTHOR: Technical Analysis, Inc.DATE: NOV1985

Reading between the lines by John Navarte

ARTICLE SYNOPSIS ...Reading between the lines by John Navarte Charting oscillators is one of the most powerful technical analysis tools available for the private and professional investor. In this article, we will consider two standard oscillator constructions. The first helps you recognize ""price excesses"" relative to moving averages; the second analyzes changes in ""price momentum."" Oscillator Formulas The oscillators you can chart are often referred to as ""difference curves."" These are obtained by computing the difference between two quantities (for example, the closing price and its moving average, or...

AUTHOR: John NavarteDATE: NOV1985

Step up to the window by Alan Hanson

ARTICLE SYNOPSIS ...Step up to the window by Alan Hanson As a newly-licensed floor broker handling orders for a major Chicago commodity broker, I enjoyed expressing my own market theories and opinions to the older members of the exchange. My ideas were important to me, but they didn't seem to impress my more experienced peers. One old timer would answer me by saying ""Step up to the window, son."" In plain language, ""If I was so sure of myself, why didn't I put my own money up and trade the market the way I saw it?"" It's one thing to talk about the market and another matter to ""step up to the window"" and put...

AUTHOR: Alan HansonDATE: NOV1985

Trading with ARIMA and stochastics

ARTICLE SYNOPSIS ...A modification of Wilder's directional movement system by Thomas P. Drinka and Steven L. Kille In his New Concepts in Technical Trading Systems (Copyright 1978) J. Welles Wilder Jr. introduced his directional movement system with the following: ""Directional movement is the most fascinating concept I have studied . . . I have probably spent more time studying directional movement than any other concept. Certainly one of my most satisfying achievements was the day I was actually able to reduce this concept to an absolute mathematical equation."" The Directional Movement System The Direction...

AUTHOR: John F. KepkaDATE: NOV1985