OCT 1985 STOCKS & COMMODITIES Magazine

Article Archive For OCT1985

Data Smoothing using a Kalman Filter by Vince Banes

ARTICLE SYNOPSIS ...Data Smoothing using a Kalman Filter by Vince Banes ""The analysis of continuous pricing information works well with this form of filtering"" The concept of optimum estimation was introduced by Dr. R.E. Kalman in 1960. The first major application of his theories was to reduce the noise found in the data of modern navigation systems. With these theories, system designers were able to use knowledge about the noise in a system to filter out its effects and to improve system performance without additional hardware. This led engineers to apply his principles to many different problems. These same...

AUTHOR: Vince BanesDATE: OCT1985

Facelift for an Old Favorite by Gregory L. Morris

ARTICLE SYNOPSIS ...Facelift for an Old Favorite by Gregory L. Morris ""There are many ways in which the Relative Strength Index can be adjusted and redefined."" Technical analysts who have not heard of J. Welles Wilder, Jr., and more specifically, his Relative Strength Index, probably have not delved into the art of technical analysis with much enthusiasm. The Relative Strength Index (RSI) was first presented in his now-classic book, New Concepts in Technical Trading Systems, published in 1978. Those who are familiar with RSI know that it is a very useful momentum indicator because its range is always between...

AUTHOR: Gregory L. MorrisDATE: OCT1985

Gambler's Paradox by Clifford J. Sherry

ARTICLE SYNOPSIS ...Gambler's Paradox by Clifford J. Sherry If you know the price of a commodity today, can you predict the price tomorrow? A week from tomorrow? A month from tomorrow? Can you predict whether the price will increase or decrease and by how much? The answer to that question depends on who you ask. Some people, like technical analysts, who use such things as charts and moving averages, believe that you can. Others do not. One reason this question is so difficult to answer is there is no general agreement about how commodity prices are 'generated.' If the underlying 'process' is random and/or indep...

AUTHOR: Clifford J. Sherry, Ph.D.DATE: OCT1985

Gann Lines and Angles by Robert Pardo

ARTICLE SYNOPSIS ...Gann Lines and Angles by Robert Pardo ""Integrated use of Gann Lines and Angles... appreciably enhances the accuracy of the identification and verification of potential turning points."" INTRODUCTION Gann Lines and Gann Angles are technical charting methods for the projection of Forward Support and Resistance. This article will discuss these techniques, their applications, the concept of Forward Support and Resistance, and the Principle of Coincidence. The projection of potential future turning points is one of the more interesting and rewarding applications of Forward Support and Resistan...

AUTHOR: Robert PardoDATE: OCT1985

AUTHOR: Technical Analysis, Inc.DATE: OCT1985

Revery: Computerized Stock Market Trading by Henry S. Patricoff

ARTICLE SYNOPSIS ...Revery: Computerized Stock Market Trading by Henry S. Patricoff A recent article in Barron's expressed the view that the options Index market has become so large that possibly it is the tail that is wagging the dog. Aside from a spectacular one or two day rise now and then, the stock market has been in a narrow trading range for many past months. Traders who look for a fluctuating market find themselves frustrated by an inability to eke out a profit either on the up or down side. Could there be another reason for this grid-lock? Is it possible that portfolio managers and market trading oper...

AUTHOR: Henry S. PatricoffDATE: OCT1985

Riding for Profits with "Irv the Liquidator" by Richard J. Maturi

ARTICLE SYNOPSIS ...Riding for Profits with ""Irv the Liquidator"" by Richard J. Maturi Wall Street Journal articles over the past few months have reported the financial dealings of Irwin Jacobs, better known as ""Irv the Liquidator."" Jacobs invests in companies he considers financially sound but in need of turning around. He has completed several such acquisitions (Bekins, Aegis) and has sold other interests back to the pursued company for a handsome profit. Recent headlines include: Disney Buys Out Jacobs' Stake for $158.1 Million Group Led By Jacobs Plans Bid For Rest Of Lyon Metal Jacobs Increases Stake i...

AUTHOR: Richard J. MaturiDATE: OCT1985

Where to Put Your Stops by John Sweeney

ARTICLE SYNOPSIS ...Where to Put Your Stops by John Sweeney Stops protecting an initial entry position are like forward passes in football: Three things can happen to you and only one of them is good! 1)You can be taken out of a strong adverse move early (That's good). 2)You can be taken out of a losing trade at the worst possible price (That's bad). 3)You can be taken out of a winning trade by an interim fluctuation (That's catastrophic!). It's worth keeping in mind how these events come about, although the first is easy. Protection is what stops are supposed to provide. You have presumably set a stop where...

AUTHOR: John SweeneyDATE: OCT1985