Article Archive For
NOV2001
-
Interview: Elliott Wave Experts by Jayanthi Gopalakrishnan and Dennis Peterson
ARTICLE SYNOPSIS ...Interview: Elliot Wave Expers - Steven Hochberg & Peter Kendall
Fibonacci numbers, fractal geometry, socionomics -- Ralph
Nelson Elliott's wave theory was published 64 years ago, but
he explored ideas that we still study today in physics,
behavioral sciences, and, of course, investing. How do the
concepts he examined translate to the markets -- and the
world -- today? To find out, STOCKS & COMMODITIES Editor
Jayanthi Gopalakrishnan and Staff Writer Dennis Peterson
interviewed two experts on Elliott wave analysis, Steven
Hochberg and Peter Kendall, in late August 2001.
Steven Hochberg is the co-...
AUTHOR: Jayanthi Gopalakrishnan and Dennis PetersonDATE: NOV2001SUBJECT: Interview
-
Letters to S&C
ARTICLE SYNOPSIS ...CANDLECODES AND BOLLINGER BANDS
Editor,
I liked very much Viktor
Likhovidov's use of
Bollinger Bands on an
indicator in "Light Up
Your Trading System
With CandleCode Trading" (STOCKS &
COMMODITIES, September 2001). Figure
5 on page 26 nicely demonstrates why
this technique is so powerful. (Though
I am leery -- as I always am of
optimization -- of the optimized
parameters used later in the article.)
As Likhovidov astutely observes,
fixed indicator levels rarely serve well.
The markets evolve, and that evolution
is portrayed in indicator action; this
year, one set of levels serves well, while
th...
AUTHOR: Technical Analysis, Inc.DATE: NOV2001SUBJECT: Letters To S&C
Nearest Neighbor Prediction by Hans Uhlig, Ph.D.
AUTHOR: Hans Uhlig, Ph.D.DATE: NOV2001SUBJECT: Trading Systems
Opening Position by Jayanthi Gopalakrishnan
AUTHOR: Jayanthi GopalakrishnanDATE: NOV2001SUBJECT: Opening Position
-
Overbought/Oversold, With Covered Calls by Austin Passamonte
ARTICLE SYNOPSIS ...Overbought/Oversold, With Covered Calls by Austin Passamonte
Knowing when to buy and when to exit or how to protect
equity plays is basic for long-term prosperity. Here is one
way to do it using covered calls.
Every stock trader should be ready and
willing to write covered calls. They are a
powerful tool for locking in partial gains
and/or reducing cost basis. By the same
token, writing covered calls as a specific
trading method also holds great merit. Let's
explore some scenarios for such tactics and see if they might
add to your personal equity curve.
MECHANICS OF TRADING COVERED CALLS
O...
AUTHOR: Austin PassamonteDATE: NOV2001SUBJECT: Options
-
Q&A by Don Bright
ARTICLE SYNOPSIS ...Q&A by Don Bright
SINCE YOU ASKED
Professional trader Don Bright of Bright
Trading, an equity trading corporation,
answers a few of your questions.
INDEX ARBITRAGE
Don, I have enjoyed your commentaries
in STOCKS & COMMODITIES. Can an
individual buy a "basket" of stocks
economically enough (say with your
firm) in order to perform index
arbitrage: selling futures versus buying
cash and vice versa? "Spread trading"
or hedged strategies appeal to me; what
valid spreads do you teach or trust, and
can an individual perform S&P or E-mini
arbing almost as effectively as the
floor traders or market...
AUTHOR: Don BrightDATE: NOV2001SUBJECT: Q&A
-
Three Traders by Don Bright
ARTICLE SYNOPSIS ...Three Traders by Don Bright
What makes them successful? What makes them fail? Here's
how these three made it through the good times and the bad.
When things are good, we often forget what
the bad times were like until they hit again.
When the bad times do hit, it's those who
are diligent, persistent, and flexible who
thrive. Impatience has no place.
In past articles I examined the
differences between professional, proprietary traders, and
customers of a retail brokerage firm. This time, I would like
to take you through the real-life experiences of three traders
I know. You'll see what it tak...
AUTHOR: Don BrightDATE: NOV2001SUBJECT: Real World
-
Trade Sector Funds With Pure Momentum by Jay Kaeppel
ARTICLE SYNOPSIS ...Trade Sector Funds With Pure Momentum by Jay Kaeppel
In the July 1999 Technical Analysis of
STOCKS & COMMODITIES, I wrote about
one of the systems I use to trade Fidelity
Select sector funds. That system was
referred to as the relative strength system
(or RS System for short). In this article,
I will discuss another system that I use
for trading sector funds. This one is referred to as the
pure momentum system (or PM System). Like the RS
System, the PM System holds a portfolio of up to five
sector funds at any time. Because the PM System is
similar to the RS System, the results tend to be hig...
AUTHOR: Jay KaeppelDATE: NOV2001SUBJECT: Trading Systems
-
Traders' Resource: Hardware
ARTICLE SYNOPSIS ...Traders' Resource: Hardware
Hardware Hardware choices these days often boil
down to getting the fastest processor and
the most memory you can afford, to-gether
with a cable connection or an-other
high-bandwidth connection for
quotes. Dual processors aren't too much
for some of the software that's available
for traders. The new LCD screens are
much easier on the eyes, so pay up for
those. That said, the vendors listed here can supply you with
some tweaks, such as customized trading setups and multiple-monitor
setups.
Regarding multiple monitors, you'll probably want to
have Windows 98 or late...
AUTHOR: Technical Analysis, Inc.DATE: NOV2001SUBJECT: Traders' Resource
-
Traders' Tips
ARTICLE SYNOPSIS ...NEUROSHELL TRADER
Hans Uhlig's nearest neighbor prediction (NNP) trading
system presented in his article in this issue works by finding
near neighbors of the reference pattern, and then averaging
the next moves of the neighbors to get an estimate of the next
move of the reference pattern. In the article, under the
heading "Refinements," Uhlig outlines a method of improving
the performance, wherein each neighbor is weighted in
proportion to its distance. A further refinement he describes
would be to apply different weights to individual elements of
the pattern.
Here's how to implement the NNP...
AUTHOR: Technical Analysis, Inc.DATE: NOV2001SUBJECT: Traders' Tips
-
What Can Market Cycles Tell Us? by Tim W. Wood, CPA
ARTICLE SYNOPSIS ...The Secrets Of Cycles And What They Can Reveal
What Can Market Cycles Tell Us? by Tim W. Wood, CPA
Everything in nature moves in cycles -- the solar system, the
migration of geese, sleep patterns. Of more immediate interest
to traders are cycles in the agricultural and financial markets. Cycle analysis is the one approach that can provide relatively
accurate time and price projections.
""Usually, the effect of cycles is of only passing
interest to market analysts and traders, unless
the cycles in question are related to market
prices and can be used to identify tops and
bottoms of price movem...
AUTHOR: Tim W. Wood, CPADATE: NOV2001SUBJECT: Cycles
-
Winning With Failure by Christopher Narcouzi
ARTICLE SYNOPSIS ...Winning With Failure by Christopher Narcouzi
Believe it or not, you can take advantage of
failed patterns and profit handsomely.
Have you ever bought a stock
after it broke through the
resistance line, only to see
the price drop a few days
later? Have you ever
bought into a breakout
from a reverse head and shoulders pattern,
just to watch that breakout fail a few days
later? If you had placed a stop, as recom-mended,
your position would have closed
out. But you don't have to stop there. In-stead,
close your position and trade the stock
in the opposite direction.
Patterns form because the ma...
AUTHOR: Christopher NarcouziDATE: NOV2001SUBJECT: Charting
-
Working Money: Interview: Laura Granger by David Penn
ARTICLE SYNOPSIS ...Working Money: Interview: Laura Granger by David Penn
How The Small Survive
Laura Granger Of Oppenheimer Emerging Growth Fund
When the going gets tough, do the small
get growing? That's how Laura
Granger, portfolio manager of
OppenheimerFunds' new Emerging Growth Fund,
sees it. At the helm of the fund since October
2000, Granger has parlayed her success in turning
around underperforming mutual funds (she helped
bring the Fortis Capital Appreciation Fund from
the bleachers to the luxury boxes during the late
1990s) into some winning stockpicks for her
emerging growth fund, including companie...
AUTHOR: David PennDATE: NOV2001SUBJECT: Interview
-
Working Money: Resistance And Support by Dennis D. Peterson
ARTICLE SYNOPSIS ...Working Money: Resistance And Support by Dennis D. Peterson
Do you want to profit in the market? Then
you need to understand resistance and
support levels.
A resistance level is the ceiling price area that a stock
repeatedly tries to break through above, but for
reasons that will become clearer later, temporarily cannot.
A support level is the counterpart to resistance, an area that
a stock repeatedly tries to go below but temporarily cannot.
After repeated attempts, the price will often finally rise
above the resistance level or go below the support level.
The most common resistance and su...
AUTHOR: Dennis D. PetersonDATE: NOV2001SUBJECT: Investing
Working Money: Setting Financial Goals by Bruce R. Faber
AUTHOR: Bruce R. FaberDATE: NOV2001SUBJECT: Investing
-
Working Money: The Lazy Man's Guide To Long-Term Investing by R.M. Sidewitz
ARTICLE SYNOPSIS ...Working Money: The Lazy Man's Guide To Long-Term Investing by R.M. Sidewitz
Are you a buy-and-hold
believer? Enhance your
returns by using this
simple technique.
One of the major chall-enges
for the long-term
investor involves the amount of
time and attention they have to
devote to managing their
portfolio. What with reading the
financial pages, subscribing to x-number
of magazines, and time
spent online seeking new ideas
and perspectives, it's easy to see
how managing investments could
evolve into a true part-time job.
Wouldn't it be great if investors
with a long-term outlook could
have a...
AUTHOR: Roy M. Sidewitz, Ph.DDATE: NOV2001SUBJECT: Investing