Article Archive For
OCT1986
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Agricultural Options by Dr. Alexander Elder
ARTICLE SYNOPSIS ...Agricultural Options by Dr. Alexander Elder
Agricultural Options
George Angell
American Management Associates
135 West 50th St.
New York, NY 10020
230 pages, $22.95 hardcover
It used to be that each new book by George Angell could be counted on to provide fresh insights into the
workings of the futures markets and give a few good trading ideas, Agricultural Options, however, is
relatively disappointing for anyone who has read Angell's earlier books.
This is the author's first major foray into the new and growing field of agricultural options. Buying
agricultural options allows market partic...
AUTHOR: Alexander Elder, MDDATE: OCT1986
AUTHOR: James Covington BryceDATE: OCT1986
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Daily price and volume study: trading windows by Frank Tarkany
ARTICLE SYNOPSIS ...Daily price and volume study: trading windows by Frank Tarkany
This article investigates day-to-day price changes of the Dow Jones Industrial Averages (DJIA) and
New York Stock Exchange (NYSE) total volume over a 85 year period to see whether the changes are
random and/or serial independent, as is generally believed.
Using a chi-square (x2) goodness of fit statistical analysis of daily DJIA price and NYSE volume
changes, I found statistically significant trading windows in both series. The NYSE volume is serially
time dependent while the DJIA daily closing price is both non-random and serial...
AUTHOR: Frank TarkanyDATE: OCT1986
In This Issue by John Sweeney
AUTHOR: Technical Analysis, Inc.DATE: OCT1986
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Letters to S&C by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Letters to S&C by Technical Analysis, Inc.
More on the Computer-Assisted Investment Handbook
Editor,
Thanks for the Computer-Assisted Investment Handbook review in your June issue. However, there are
some factual errors that need correction:
1. It was published in 1983 (not 1982) 2. The Foreign Exchange programs are not ""genuinely trivial"" (see
pages 134-145 of the handbook). The use of these programs could have successfully forecast the trends in
foreign exchange rates since generalized floating in March 1973. (Also see Richard & Schumpeter, et.al.)
3. It is not true that ""no evidence i...
AUTHOR: Technical Analysis, Inc.DATE: OCT1986
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Part 1 Assessing risk on Wall Street A philosophy of investing by Thomas A. Rorro
ARTICLE SYNOPSIS ...part 1 Assessing risk on Wall Street A philosophy of investing by Thomas A. Rorro
The goal of investing is to make a profit. To achieve this goal, the investor places his money at
risk--with the hope of increasing his wealth. Whether by buying real estate, depositing funds in a savings
account, or buying shares of stock, the investor wants to protect his current assets and make a profit.
Investors invest with an intuitive knowledge of risk. But only the banking community has been able to
quantify both the expected profit and the risk. Most banks provide a specified rate of return in a risk-fr...
AUTHOR: Thomas A. RorroDATE: OCT1986
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Part 2 Succeeding with options by Leonard Yates
ARTICLE SYNOPSIS ...part 2 Succeeding with options by Leonard Yates
As promised in the first half of this article, here are three safe and reliable methods for succeeding in
options without forecasting the underlying security.
Method #1: Temporary mispricings
Options frequently trade for as much as a one-half point difference from theoretical values for short
periods. In such times of temporary mispricings, you should buy undervalued options and/or sell
overvalued options. Strategies can be found that minimize your exposure to price movements in the
underlying asset if desired, while waiting for option prices ...
AUTHOR: Len YatesDATE: OCT1986
AUTHOR: Wilbur CorellaDATE: OCT1986
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SIDEBAR: The basics by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...SIDEBAR: The basics by Technical Analysis, Inc.
There is a special vocabulary of options trading that must be mastered in order to understand the uses
of options and communicate with brokers and other option traders.
An option is a legal contract that gives the holder the right to buy or sell a specified amount of the
underlying asset at a fixed or determinable price (called the exercise or strike price) upon exercise of the
option. Options that can be exercised at any time before they expire are sometimes called American
options. They are to be distinguished from European options, which can...
AUTHOR: Technical Analysis, Inc.DATE: OCT1986
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Sweeney Agonistes by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Sweeney Agonistes by Technical Analysis, Inc.
KNOW YOUR TIME-HORIZONS
My Club 3000 buddies and subscribers often ask how I go about trading. The truth is I use only moving
averages and RSI. These are both ""optimized"" with time-horizons approximating the cycle length which I
literally eye-balled on daily and weekly charts drawn on my Commodore 64 with QuickTrieve software!
Believe me, none of this impresses anyone else. Yet my back-testing and actual trading is consistently
profitable. That simple basis is continually being refined these days and that work has convinced me that
far more wo...
AUTHOR: Technical Analysis, Inc.DATE: OCT1986
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The relative strength quality factor by Donald Jones and Tod Stromquist
ARTICLE SYNOPSIS ...The relative strength quality factor by Donald Jones and Tod Stromquist
The relative strength index (RSI), as popularized by J. Welles Wilder in his book and later by a chart
service, is possibly the most widely used technical indicator in futures trading. An oscillator, the RSI can
take values from zero to l00, with 50 being the neutral, or most expected value. As suggested by Wilder
and generally used, an RSI of 70 or more indicates an overbought (OB) market; 30 or less is oversold
(OS). Consequently, the real action, i.e., the OB/OS areas, tends to be crammed into limited regions.
Experien...
AUTHOR: Donald Jones and Tod StromquistDATE: OCT1986
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Wyckoff method of trading stocks part 6 Figure charts by Jack K Hutson
ARTICLE SYNOPSIS ...Wyckoff method of trading stocks part 6 Figure charts by Jack K Hutson
Thus far in this series we've concentrated on the price volume information supplied by vertical charts,
which are the mainstay of Richard D. Wyckoff's technical analysis. But as an adjunct to vertical charts,
most Wyckoff analysts also employ figure charts, which record only price movement.
Figure charting allows the analyst to quickly see where and how strongly supply or support is building
and to actually calculate the distance a price should rise or fall. Therefore with a vertical chart pointing
out direction, the figu...
AUTHOR: Jack K. HutsonDATE: OCT1986