Article Archive For
NOV2009
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A Seasonal System For Soybean Futures by Markos Katsanos
ARTICLE SYNOPSIS ...A Seasonal System For Soybean Futures by Markos Katsanos
Here's a system that exploits
historical seasonal patterns to
trade soybean futures.
Some markets are affected by certain fundamental factors that are seasonal in nature. These tend to recur at the same time each year, influencing the price trend of these markets. The commodity markets have always offered seasonal trading opportunities. Soybeans, corn, and heating oil are three examples of typical seasonal markets. In the case of grains, seasonality is defined by planting and harvest.
SEASONALITY
Normally, we can expect prices to ...
AUTHOR: Markos KatsanosDATE: NOV2009SUBJECT: Trading Systems
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At The Close by Dan Altman
ARTICLE SYNOPSIS ...At The Close by Dan Altman
Is Trading Right For You?
If you are interested in becoming a trader, this is
a very important question to ask yourself.
ost traders new to the business don't ask themselves if trading is right for them. They may assume that trading is the thing for them because they have the desire to trade. Anyone who wants to trade should consider whether it is a good fit for them personally. Every profession has its rewards and challenges, including the requirements of hard work and years of practice. However, trading in its specifics is unique.
MISCONCEPTIONS ABOUT TRADIN...
AUTHOR: Dan AltmanDATE: NOV2009SUBJECT: At The Close
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Books For Traders by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Books For Traders by Technical Analysis, Inc.
? Electronic Exchanges: The Global Transformation From Pits To Bits
? Financial Instruments: Equities, Debt, Derivatives, And Alternative Investments
? The Midas Touch: The Strategies That Have Made Warren Buffett The World's Most Successful Investor
? The Leverage Space Trading Model: Reconciling Portfolio Management Strategies and Economic Theory
? Reading Price Charts Bar By Bar: The Technical Analysis Of Price Action For The Serious Trader
? The Truth About Day Trading Stocks: A Cautionary Tale About Hard Challenges, And What It Takes...
AUTHOR: Technical Analysis, Inc.DATE: NOV2009SUBJECT: Books For Traders
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Continuation Price Patterns by Alexander Sabodin
ARTICLE SYNOPSIS ...Continuation Price Patterns by Alexander Sabodin
Take a look at some of the more common continuation patterns that you find on charts.
Like reversal models (or patterns), continuation models are formed during periods of market instability. These appear when bullish and bearish forces are about equal. As a result, price stops moving in the direction of the trend and starts to fluctuate within a range. The appearance of continuation models usually indicates that the period of price standstill that you see on a chart is nothing more than a pause in the development of the prevailing trend. The ...
AUTHOR: Alexander SabodinDATE: NOV2009SUBJECT: Chart Patterns
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Explore Your Options by Tom Gentile
ARTICLE SYNOPSIS ...Explore Your Options by Tom Gentile
SHORT STOCK RISK IN CALL CALENDAR
Sears Holding (Shld) was brought to my attention after Barron's profiled the shares as being overvalued. Looking at the premiums, I noticed a distinct skew between the calls and puts. On the surface, the pricing makes the call calendar appear artificially cheap versus its put counterpart. I'm skeptical, but I'm having problems figuring out if some other factor is at work. Can you help?
Great question and a hat tip for seeing potential trouble rather than establishing a position that could be riskier than it appears. I ch...
AUTHOR: Tom GentileDATE: NOV2009SUBJECT: Explore Your Options
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Futures For You by Carley Garner
ARTICLE SYNOPSIS ...Futures For You by Carley Garner
VIX FUTURES
How can I trade Vix futures?
On March 26, 2004, the Chicago Board Options Exchange (Cboe) listed a futures contract with its volatility index (Vix), often referred to as the fear index, as the underlying asset. Although the Vix has been in existence for some time, it wasn't always tradable via futures contracts. As is the case with any new listed product, liquidity has been an issue for Vix speculators; however, volume and open interest are on the rise.
That said, don't make the mistake of attempting to trade the miniversion of the Vix. It is c...
AUTHOR: Carley GarnerDATE: NOV2009SUBJECT: Futures For You
Jay Kaeppel On Trading Futures, Options, Gold, Sectors by J. Gopalakrishnan and B.R. Faber
AUTHOR: J. Gopalakrishnan and B. FaberDATE: NOV2009SUBJECT: Interview
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Letters To S&C by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Letters To S&C by Technical Analysis, Inc.
INTERVIEW WITH GREG MORRIS
Editor,
Thanks for the interview with Greg Morris ("The Danger Zone With Gregory Morris," interview, September 2009 S&C). It especially hit home for me since I too was reading Zahorchak in 1974, using multicolored pens to keep track of weekly prices on a big analysis pad I kept for about 50 high-beta stocks. I too got the data from my weekly Barron's and kept track of the Nyse A/D line. I was taking a course in stock market analysis. Fifty of us in the class had a trading contest. I came in second using Zahorchak's method...
AUTHOR: Technical Analysis, Inc.DATE: NOV2009SUBJECT: Letters To S&C
Looking At The Market With Auction Market Analysis by Tom Alexander
AUTHOR: Tom AlexanderDATE: NOV2009SUBJECT: Indicators
Opening Position by Jayanthi Gopalakrishnan
AUTHOR: Jayanthi GopalakrishnanDATE: NOV2009SUBJECT: Opening Position
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Q&A by Don Bright
ARTICLE SYNOPSIS ...Q&A by Don Bright
IMBALANCES
I've been watching end-of-day (Eod) imbalances to see what effect they may have on price and I can't find any pattern. Do market-on-close (Moc) imbalances mean anything? I read recently on Yahoo that in theory, a large buy imbalance would cause a stock to gap up at the closing price to accommodate the order and the reverse would be true for a sell imbalance, which should gap down the stock price. Traders would profit from the move with a buy imbalance by buying the stock right before the close and sending an immediate sell on close order. This way, the buy imbala...
AUTHOR: Don BrightDATE: NOV2009SUBJECT: Q&A
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Short-Term Profits With Gap Trading by Glaister Welsh
ARTICLE SYNOPSIS ...Short-Term Profits With Gap Trading by Glaister Welsh
Mispriced stocks are often caused by gaps, which you can take advantage of by applying a strategy that generates above-average returns while reducing your risk. Check it out.
A convergence trading strategy is based on the theory that when the price of a stock or stock portfolio significantly deviates from its long-term trend, it will return to its original trend sooner or later. Normally, convergence trades tend to move prices toward their long-term equilibrium values and, thereby, stabilize markets. However, some research suggests that i...
AUTHOR: Glaister WelshDATE: NOV2009SUBJECT: Charting
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Spread Trading to Reduce Risk by L.A. Little
ARTICLE SYNOPSIS ...Spread Trading to Reduce Risk by L.A. Little
What are spread trades, how do they work, and how can we use them?
The spread trading strategy receives too little attention even though a well-designed spread can offer excellent profit potential while decreasing risk. Spread trading isn't viewed to be as glamorous as directional trades, so at the risk of turning you off I am going to turn your attention to what spread trades are and how they work; when they make sense; and how to implement them. Finally, I will show you a concrete example of how spread trades work in an actual trade.
WHAT ARE...
AUTHOR: L.A. LittleDATE: NOV2009SUBJECT: Trading Techniques
Traders' Resource Brokerages by Technical Analysis, Inc.
AUTHOR: Technical Analysis, Inc.DATE: NOV2009SUBJECT: Traders' Resource
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Traders' Tips by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Traders' Tips by Technical Analysis, Inc.
Most of this month's Traders' Tips are based on Markos Katsanos' article in this issue, "A Seasonal System For Trading Soybean Futures." Others are on a topic of the contributors' choosing.
Code for use in Multi Charts is provided in Katsanos' article, as well as at the end of this document. Additional code is presented here as contributed by various software developers.
Readers will find our Traders' Tips section in its entirety at the Stocks & Commodities website at www.Traders.com in the Traders' Tips area, from where the code can be copied and...
AUTHOR: Technical Analysis, Inc.DATE: NOV2009SUBJECT: Traders' Tips
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Using The Emini S&P 500 To Trade Options by Tom Busby
ARTICLE SYNOPSIS ...Using The Emini S&P 500 To Trade Options by Tom Busby
Here's a technique one veteran S&P futures trader uses to trade options.
I rarely come across a trader who has not traded options at one time or another. Option strategies come in many shapes and forms, but they are all intended to do one thing: make money. I've been trading since 1980 and was at one time one of the largest option traders in the brokerage industry until the crash of 1987, which made me realize that holding a leveraged position overnight could be devastating.
Though I still trade options, I have a totally different pers...
AUTHOR: Tom BusbyDATE: NOV2009SUBJECT: Real World
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Websites For Traders by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Websites For Traders by Technical Analysis, Inc.
NEWSIMPACT.COM
NewsImpact.com is a website devoted to foreign exchange. It has two major components: alerts that can be sent to your cell phone, and SpikeCharts. The alerts, which are sent as Sms messages, are of two types: news and price. The news alerts are received when economic data is released and price alerts are received when the price level you set your alert to is hit. This is very useful when you are not sitting in front of your quote screen; given that forex trades around the clock, there is a strong chance that you are not going t...
AUTHOR: Technical Analysis, Inc.DATE: NOV2009SUBJECT: Websites For Traders
Working Money: Crash Course For Novice Traders by Donald Pendergast
AUTHOR: Donald W. Pendergast, Jr.DATE: NOV2009SUBJECT: Novice Traders' Notebook
Working Money: Do You Need Volume To Move Stocks Higher? by Michael Carr
AUTHOR: Michael J. Carr, CMTDATE: NOV2009SUBJECT: The Chartist