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Technically Speaking, August 2009

Letter from the Editor

Trading and getting involved in the MTA are the focus of this month's newsletter. Dan Zanger is a short-term trader with an enviable record of success. Ajay Jani offers insights into his thinking, and then we reprint what Dan considers to be among his most important rules. We also review a new book by Larry Connors and Cesar Alvarez from TradingMarkets.com. Short-term trading can offer high potential profits, but these articles also address the risk which is inseparable from trading. We also have news from the MTA Educational Foundation and the Journal Committee. The MTA is constantly advancing into academia and these initiatives are at the forefront of that march. This will add value to your membership and bring added prestige to the CMT designation by improving the acceptance of technical analysis within the investment community. Please let us know what you think of the newsletter, and how we can improve this member benefit for you. Sincerely, Mike Carr, CMT

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What's Inside...

Perseverance DefinedThe Story of Dan Zanger

by Ajay G. Jani, CMT

On April 23rd 2009, I had the opportunity to speak with Dan Zanger. Zanger is a legend in the stock trading business, having run up a six figure account to $42 million during the heyday of the...

Dan Zanger's 10 Golden Stock Rules And Trading Tips

by Dan Zanger

This article is excerpted from Dan Zanger’s web site http://www.chartpattern.com/10_golden_rules.html and is reprinted with permission. Notice: This method and its methodology work best for those...

HIGH PROBABILITY ETF TRADING: 7 Professional Strategies to Improve Your ETF Trading by Larry Connors, Cesar Alvarez, and Connors Research

by Laurence Connors & Cesar Alvarez & Michael Carr, CMT

Exchange Traded Funds (ETFs) have been around for more than 16 years – the American Stock Exchange began trading SPDRs on January 29, 1993. From this humble start, there are now more than 800 ETFs...

Letter from the Editor of the Journal of Technical Analysis

The MTA Journal of Technical Analysis Welcomes Robert R. Prechter, Jr. CMT and Sid Mokhtori, CMT On behalf of the MTA Journal of Technical Analysis, we would like to announce changes in our...

An Interview with Jeremy Berkovits, CMT

by Jeremy Berkovits, CMT & Yevgen Avramych

After speaking at the MTA Symposium in May, Jeremy Berkovits took a few moments to discuss the path he took to become a market technician. He also offered some career advice for aspiring CMTs, and...

On Campus

by Kimberly Sokoloff, CMT

I recently had the pleasure of teaching two Series 7 classes with MTA Educational Foundation President Bruce Kamich, CMT, at the University of Delaware. We had 24 students in each of the classes,...

MTA Financial Position

by Diana Perez

As the Controller of the MTA, I am pleased to announce the fiscal year ending June 30, 2009 financial results. Please note that at this point the financials are “unaudited”. The audit is...

CMT Program Update

by Jeanette Schwarz Young CMT, CFP, CFTe, MS

The CMT Test Development Committee and CMT Advisory Committee will be very busy during the next several months in a combined effort to continually enhance the CMT program. We are pleased to announce...

MTA Announcements

MTA Educational Web Series Registration is now open for the following upcoming presentations of the FREE MTA Educational Web Series. Sign Up Now – Monday, August 10th, Joe Kinahan and Ryan...

Perseverance DefinedThe Story of Dan Zanger

Perseverance DefinedThe Story of Dan Zanger

On April 23rd 2009, I had the opportunity to speak with Dan Zanger. Zanger is a legend in the stock trading business, having run up a six figure account to $42 million during the heyday of the internet bubble. Many dismissed his performance as sheer luck, but it took 20+ years of hard work and dedication before he became an “overnight success”. The story of Zanger’s struggles and learning experiences before he turned the corner should be an inspiration to all aspiring traders.

From 1969-1972, Zanger spent his life as a “ski bum”, working at resorts in Mammoth Lakes, CA and Steamboat Springs, CO. During this time, he came across Ed Thorp’s book “Beat the Dealer”, and every 3-4 weeks would travel to Lake Tahoe to play blackjack using Thorp’s card-counting methodology. He was thrown out of casinos several times using the strategy, and quickly learned that to succeed counting cards

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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)

Ajay G. Jani, CMT

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Dan Zanger's 10 Golden Stock Rules And Trading Tips

Dan Zanger's 10 Golden Stock Rules And Trading Tips

This article is excerpted from Dan Zanger’s web site http://www.chartpattern.com/10_golden_rules.html and is reprinted with permission.

Notice: This method and its methodology work best for those people that can act promptly and without hesitation executing the golden rules and general notes listed below. It is also for those that are preferably on real-time quotes. Many stocks are listed in the nightly newsletter (provided as a service by Zanger) and only those that move quickly, on heavy volume, through the trend lines and buy points, should be considered.

In addition to these 10 rules, please see notes below. And if you are new to trading or investing please see the paragraphs with the * at the bottom.

  1. Make sure the stock has a well formed base or pattern such as one described on this web site and can be found on the tab “Understanding Chart Patterns” on the home page, before considering purchase. Dan highlights

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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)

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HIGH PROBABILITY ETF TRADING: 7 Professional Strategies to Improve Your ETF Trading by Larry Connors, Cesar Alvarez, and Connors Research

HIGH PROBABILITY ETF TRADING: 7 Professional Strategies to Improve Your ETF Trading by Larry Connors, Cesar Alvarez, and Connors Research

Exchange Traded Funds (ETFs) have been around for more than 16 years – the American Stock Exchange began trading SPDRs on January 29, 1993. From this humble start, there are now more than 800 ETFs according to some counts and their total market cap exceeds half a trillion dollars. While they seem to have been started as a buy-and-hold alternative to index funds, there is no doubt that ETFs are now used by traders.

In “High Probability ETF Trading,” Connors and Alvarez offer proven strategies that take advantage of the deep liquidity of ETFs. In fact, the authors offer five reasons that ETFs are a preferred trading vehicle for many traders:

  1. ETFs Are Safer Than Stocks – There is less single stock corporate risk as ETFs are a basket of underlying securities. With multiple securities, you aren’t subject to the wide array of risks including corporate scandals, aftermarket earnings reports, and other

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)

Larry Connors

Laurence Connors

Cesar Alvarez

Cesar Alvarez

Michael Carr, CMT

Michael Carr, CMT

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Letter from the Editor of the Journal of Technical Analysis

Letter from the Editor of the Journal of Technical Analysis

The MTA Journal of Technical Analysis Welcomes Robert R. Prechter, Jr. CMT and Sid Mokhtori, CMT

On behalf of the MTA Journal of Technical Analysis, we would like to announce changes in our manuscript review board.

What does the review board actually do for you? We are about to begin our process for the next Journal. The authors of papers are made anonymous and their papers are sent to two reviewers for their judgment if a paper has merit for publication. This is more than just a thumbs up or down decision that is made. Sometimes a paper is very close but needs an omission corrected, a concept clarified, formulas have to be checked and results confirmed. As your editor I review these recommendations and communicate directly with the authors. While our reviewers have an important role to accept papers that reflect the highest standards within our industry, they also strive 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.

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An Interview with Jeremy Berkovits, CMT

An Interview with Jeremy Berkovits, CMT

After speaking at the MTA Symposium in May, Jeremy Berkovits took a few moments to discuss the path he took to become a market technician. He also offered some career advice for aspiring CMTs, and shared his views on the financial markets in these volatile times.

Like many technicians, the path Jeremy took towards a career in finance is an unconventional one. He had absolutely no investment background and in fact studied political science and conflict resolution theory. After exploring the job market with various non-governmental organizations, he realized that prospects in this field of work were not very good. At that point Jeremy tried his luck at retail brokerage to pay the bills, expecting eventually to return to international relations. Jeremy found some success and was able to stick around for a long time in a job that had a very high turnover rate.

Recognizing that he could not rely on

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)

Jeremy Berkovits, CMT

Yevgen Avramych

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On Campus

On Campus

I recently had the pleasure of teaching two Series 7 classes with MTA Educational Foundation President Bruce Kamich, CMT, at the University of Delaware. We had 24 students in each of the classes, which were conducted this past May. The class was very well received by the students, and we also had the dean of the business school sit in on one of the classes.

When I contacted the business department in September 2008, they were very agreeable to having Bruce and I visit the campus to teach the Series 7 class. This may have been due to the fact that the exam now has a chapter dedicated to Technical Analysis.

Walking into the Alfred Lerner business school, then stepping into their Exelon trading simulation room was a trip in itself. It simply amazes me how much schools have advanced in terms of technology over the past twelve years, since I completed

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)

Kimberly Sokoloff, CMT

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MTA Financial Position

MTA Financial Position

As the Controller of the MTA, I am pleased to announce the fiscal year ending June 30, 2009 financial results. Please note that at this point the financials are “unaudited”. The audit is being conducted now by RSM McGladrey and we expect to be complete by the end of September, 2009.

For the fiscal year just ended (July 1, 2008-June 30th, 2009) the MTA recorded:

  • Total Revenues of $1.7 Million
  • An Operating Excess of revenues over expenses, of $152 thousand
  • Net Assets as of June 30th, 2009 of $1.4 Million, the majority of which is cash and laddered certificates of deposit.

These results will be audited by our auditors, RSM McGladrey in the upcoming months. Once their review is complete, the audited Financial Report will be posted on-line.

For additional information about our fiscal year I can be reached at diana@mta.org or 646-652-3300.

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)

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CMT Program Update

CMT Program Update

The CMT Test Development Committee and CMT Advisory Committee will be very busy during the next several months in a combined effort to continually enhance the CMT program. We are pleased to announce that the MTA Board of Directors has commissioned a Job Analysis facilitated by Prometric (an outside psychometric consultant) for the CMT 1 and CMT 2 exams. This analysis will seek to obtain current information about the tasks, tools, knowledge and skills required to perform the job of technical analysis. This is the first full update since implementing the original Job Analysis in 2004. Smaller Pulse Surveys were done in 2007. The objective of this initiative is to ensure that our curriculum and exams are up-to-date with current and new advances in technical analysis.

We will have our first task force meeting during the weekend of August 15-16 to kick-off this very important process. Almost all the members of

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)

Jeanette Schwarz Young CMT, CFP, CFTe, MS

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MTA Announcements

MTA Announcements

MTA Educational Web Series

Registration is now open for the following upcoming presentations of the FREE MTA Educational Web Series.

    • Sign Up Now – Monday, August 10th, Joe Kinahan and Ryan Campbell, CMT will present “High Probability Option Trades with Reversal Patterns.” Register for this webcast.
    • Sign Up Now – Wednesday, August 26th, Michael Carr, CMT will present “Applying Academic Studies to Real World Trading.” Register for this webcast.

* New Archive Available – For those of you who were unable to attend Dennis Gartman’s August 3rd presentation on Fundamentals and Technicals: Stealing from Both Schools, it has now been posted to the mta.org website. Please click here to view the recording.

View the entire schedule of upcoming webcasts…

Knowledge Base – New Addition!

Today, August 3rd, the MTA announces its first blog posting! In the inaugural edition of the MTA’s Chart of the Week, Jeffery E.

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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.

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New Educational Content This Month

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