public

Technically Speaking, September 2018

From the Editor

As Randy Quaid’s character said as he was about to slay the alien ship in Independence Day, “Hello boys – I’m baaack!” Hello boys and girls! After a 20-year hiatus, I am back at the helm of Technically Speaking. The good news is that unlike last time when it was just me, with the indomitable Barbara Gomperts handling production, we’ve got a full team handling the particulars, including gathering some of the content. Shout outs to Tyler Wood, Shane Skwarek, CMT Association CEO Alvin Kressler and the staff for all the help. The biggest change you will notice is that we’ve taken Technically Speaking back to a more traditional association newsletter where we focus on you, the member, and how the CMT Association can help you in your careers. Kudos to Mike Carr, CMT for his stewardship over the past few years. That was a flashback for me, because the last time I was editor, I relied on Mike for all sorts of content. Maybe we can twist his arm again! Aside from bringing you your association news, this inaugural newsletter

To view this content you must be an active member of the CMT Association.
Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

What's Inside...

President's Corner

by Scott G. Richter, CMT, CFA, CHP

As I started penning this short CMT Association update with the phrase “summer has ended…” it struck me that the accuracy of that statement depends on which hemisphere the reader is in! ...

Judgment for Traders: Lessons from Dead Pilots (Part I)

by Mark Eidem, CMT, CFA

Originally published June 2000 Alaska is the “flyingest” state in America, having more pilots and airplanes per capita than any other state.  Alaska pilots fly through some of the...

Ethics: A Critical Part of the CMT Program and the CMT Association

by Stanley Dash, CMT

An integral part of the CMT Association’s mission is to establish, maintain, and encourage the highest standards of professional competence and ethics among our membership.  As such, CMT...

A Market of Stocks - A new look at the Advance-Decline Line

by Vincent M. Randazzo, CMT

As we have learned over the course of many bull and bear markets, prices alone can sometimes be misleading, especially those of large-capitalization-weighted indexes. When the vast majority of...

Member Interview featuring Ralph Acampora, CMT

by Ralph Acampora, CMT

Each month, we will bring you interviews or stories from members who have been there and done that. It is fitting that we start with the “Godfather of Technical Analysis” and CMT Association...

CMT Association News & Member Updates

by Marie Penza

Exemption for CFA Charter Holder At the February 13, 2018 board meeting, the CMT Association Board of Directors approved an exemption to CFA charter holders enrolling in the CMT Program for the CMT...

CMT Program News - You’ve Completed CMT Level III – Now What?

by Chelsey Clevenger

You’ve worked hard studying for your exams and are eager to get your CMT designation. Even before you get the word you’ve passed the Level III Exam you can start your application for membership...

Chapter News - Houston

by Adin Gosine

On July 12, 2018, at Morton’s The Steakhouse in downtown Houston, the CMT Association partnered with GARP (Global Association of Risk Professionals) to host a presentation on machine learning and...

Upcoming Events

Categories 2016 Annual Symposium Annual Symposium Atlanta, GA Austin, TX Boston, MA Chapter Events Charlotte, NC Chicago, IL Conferences ...

President's Corner

President's Corner

As I started penning this short CMT Association update with the phrase “summer has ended…” it struck me that the accuracy of that statement depends on which hemisphere the reader is in!  It was also a great reminder of how globally diverse the CMT Association has become and that we are currently an organization with members and associates in 137 countries.

“Great,” you may say, “but where is the CMT Association going?” and, “How do we stay relevant in the financial markets?”  Or, more to the point, “What have you done for me, lately?”

These are all important questions and we will answer them, in part, by explaining our organizational strategy to you over the next few months.  I’ll start here with a broad overview of our direction, and in the coming months we’ll do more of a deep dive into the elements of our strategy.  If we leave any questions open,

To view this content you must be an active member of the CMT Association.
Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

Contributor(s)

Scott Richter, CFA, CMT, CHP

Scott G. Richter, CMT, CFA, CHP

Back to top
Judgment for Traders: Lessons from Dead Pilots (Part I)

Judgment for Traders: Lessons from Dead Pilots (Part I)

Originally published June 2000

Alaska is the “flyingest” state in America, having more pilots and airplanes per capita than any other state.  Alaska pilots fly through some of the most remote and demanding terrain anywhere in the world.  Imagine flying from Boston to Washington, D.C. in a small single engine airplane and crossing a mountain range larger than the Rockies through a remote mountain pass.  In addition, the weather can change suddenly and is only reported at Boston, New York and Washington, D.C.  Further, there are no roads to follow and the largest population center a pilot flies near is less than 1,000 people. That is a typical day in the life of an Alaska bush pilot.

Flying (like trading) is not in and of itself dangerous.  However, flying (like trading) is terribly unforgiving of ineptitude, carelessness or neglect.  National Transportation Safety Board accident statistics consistently rank “pilot error” as the

To view this content you must be an active member of the CMT Association.
Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

Contributor(s)

Mark Eidem, CMT, CFA

Back to top
Ethics: A Critical Part of the CMT Program and the CMT Association

Ethics: A Critical Part of the CMT Program and the CMT Association

An integral part of the CMT Association’s mission is to establish, maintain, and encourage the highest standards of professional competence and ethics among our membership.  As such, CMT Association members must abide by the CFA Institute’s Code of Ethics and Standards of Professional Conduct, licensed by the CMT Association on behalf of its members.  Violations may result in disciplinary sanctions by the CMT Association which can include revocation of membership and the right to use the CMT designation.

There are two essential documents for members to review and CMT Program candidates to study.  The two-page Code and Standards document is the succinct expression of our ethical principles.  The extensive Standards of Practice Handbook examines and expands on the Code and Standards with explanations and case studies.

When preparing for all three levels of the CMT exams, candidates should be aware that the Code and Standards is the

To view this content you must be an active member of the CMT Association.
Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

Contributor(s)

Stanley Dash, CMT

Back to top
A Market of Stocks - A new look at the Advance-Decline Line

A Market of Stocks - A new look at the Advance-Decline Line

As we have learned over the course of many bull and bear markets, prices alone can sometimes be misleading, especially those of large-capitalization-weighted indexes. When the vast majority of publicly traded companies are not mega- or even large-cap companies, it’s important to remember that the stock market is actually a market of stocks. This is why measuring stock market breadth is so valuable.

Breadth in these terms is a gauge of “market internals” (i.e., how many stocks are actively participating in an uptrend). In the same way that a doctor with the right tools and experience is able to diagnose an ailment in an otherwise healthy-looking patient, we strive to do the same as it relates to the health of market trends.

There are many ways to examine stock market breadth, but one of the oldest and most incorruptible measures is the Advance-Decline (A/D) Line, which measures net advances defined as the

To view this content you must be an active member of the CMT Association.
Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

Contributor(s)

Vincent M. Randazzo, CMT

Back to top
Member Interview featuring Ralph Acampora, CMT

Member Interview featuring Ralph Acampora, CMT

Each month, we will bring you interviews or stories from members who have been there and done that. It is fitting that we start with the “Godfather of Technical Analysis” and CMT Association co-founder Ralph Acampora, written by Ralph himself.

In 1967 I was involved in a life-threatening automobile accident: a trailer-truck (40 tons, traveling at 60 mph) totaled my car and I wound up in a hospital for the following three months – I underwent a spinal fusion operation and an extensive period of recovery. My father’s friend, Mr. Bill Downey, visited me often in the hospital and regularly dropped his reading material into my bed – the Wall Street Journal, the Economist and Forbes magazine. It was the first time I was exposed to the field of finance.

I told him that I liked reading that stuff. “Oh, that’s research”, he said, “I’ll get you a job.” He introduced me

To view this content you must be an active member of the CMT Association.
Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

Contributor(s)

Ralph Acampora, CMT

Ralph Acampora, CMT

Back to top
CMT Association News & Member Updates

CMT Association News & Member Updates

Exemption for CFA Charter Holder

At the February 13, 2018 board meeting, the CMT Association Board of Directors approved an exemption to CFA charter holders enrolling in the CMT Program for the CMT level I exam, beginning in the fall of 2018.  Please note that the CMT level I & II exams provide an exemption to FINRA’S Series 86.

CMT November- December 2018 Testing

Curently, we have over 860 members from 57 countries signed up for the next test administration period.  We encourage all who are thinking of taking the exam in late November and December 2018 to take advantage of the standard registration price and register by October 1st.  Late registration is from October 2nd to November 9th.

The level I & II exams will take place November 27-December 5, 2018. The level III exam will take place on November 29th.

For those who have already registered, please be sure to go to

To view this content you must be an active member of the CMT Association.
Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

Contributor(s)

Marie Penza

Back to top
CMT Program News - You’ve Completed CMT Level III – Now What?

CMT Program News - You’ve Completed CMT Level III – Now What?

You’ve worked hard studying for your exams and are eager to get your CMT designation. Even before you get the word you’ve passed the Level III Exam you can start your application for membership by asking your sponsors to complete the sponsorship questionnaire

As you know, in order to officially receive your CMT designation, you must apply to become a professional member of the CMT Association. Here’s what you need to have:

  1. Affiliate CMT Association membership in good standing
  2. Three years of professional experience where you apply technical analysis to your job.
  3. Three sponsorship forms filled out and submitted by professional members with the CMT designation.
    • All sponsors must be in good standing with the association
    • There cannot be more than two sponsors working at the same firm.
    • Sponsors also cannot be current volunteers on the Admissions Committee.

The Admissions Committee reviews the full application and supporting materials, and pending approval, goes to the Board

To view this content you must be an active member of the CMT Association.
Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

Contributor(s)

Chelsey Clevenger

Back to top
Chapter News - Houston

Chapter News - Houston

On July 12, 2018, at Morton’s The Steakhouse in downtown Houston, the CMT Association partnered with GARP (Global Association of Risk Professionals) to host a presentation on machine learning and blockchain. Tucker Balch, professor at Georgia Tech and co-founder of Lucena Research, lead the talk on machine learning. Partha Chatterjee, Program Director at Shell, lead the talk on blockchain.

Members of the CMT and GARP learned how innovative technologies affect the financial and commodity markets. While some of these technologies were already in use in the financial markets, they are now permeating the commodity markets. Many global commodity trading firms are now adopting both blockchain and machine learning.

Attendees loved the interactive format. They were able to ask questions pertaining to how these technologies affect their work, and how they may benefit from them. Overall, this event brought members of different organizations together for a fun and educational experience.

Adin Gosine
Co-Chair, Houston

To view this content you must be an active member of the CMT Association.
Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

Contributor(s)

Adin Gosine

Back to top
Upcoming Events

Upcoming Events