LETTER FROM THE EDITOR
We are starting this month’s newsletter with an article that challenges the traditional models used to explain market prices. Dr. Ben Hunt argues that just as the heliocentric model of the solar system replaced a geocentric model over time, long-held beliefs about markets need to be reexamined and updated to reflect new knowledge. Fortunately, Dr. Hunt points out that there is a market theory which lays the groundwork for a new understanding of market:
“Technical analysis is, at its heart, behavioral analysis, and as such is prime real estate to build a new investment paradigm that incorporates game theoretic behaviors.”
This is a thought-provoking piece that is followed by a practical example of how the MTA Educational Foundation is working to further this goal. We then have practical examples of how the theory of technical analysis is applied in the real world.
I hope you are a part of the theoretical and practical changes that are occurring in the financial community. If you would like to share your thoughts on those changes, please email us at email@example.com.
THE MUSIC OF THE SPHERES AND THE ALCHEMY OF FINANCEby Ben Hunt
“You say that we go round the sun. If we went round the moon it would not make a pennyworth of difference to me or to my work.” – Sherlock Holmes (from “A Study in Scarlet” by Arthur Conan...
MTAEF CONTINUES BUILDING ON SUCCESSES IN THE ACADEMIC COMMUNITYby J. Cody Tafel, CMT, CAIA & Michael Carr, CMT
The MTA Educational Foundation has been working to create and fund educational programs in the field of technical analysis since 1993. In recent years, the MTAEF has been developing a complete course...
NAVIGATING THE DOW GEOMETRICALLY USING ‘EARTH-MEASUREMENT’by Scott Hathaway, CFTe
INTRODUCTION Geometry: ‘Geo’ means Earth and ‘metry’ refers to measurement. I find this very profound; the word for the world of angles, shapes and associated ratios and formulas actually...
INTERVIEW WITH PHIL ROTH, CMTby Phil Roth, CMT & Amber Hestla-Barnhart
What led you to look at the particular markets you specialize in? The first market I focused on was equities. My first technical job, starting in 1967, was an assistant to Bob Farrell, who ran the...
A TECHNICAL GUIDE FOR DOMESTIC ETF PORTFOLIOSby Jonathan Beck
Editor’s note: This is an example of an analysis that applies the theory of technical analysis to create an action plan. The thought process Jonathan applies to portfolio management is easy to...
BOOK REVIEWSby Michael Carr, CMT
Shareholder Yield: A Better Approach to Yield Investing by Mebane Faber, CAIA, CMT Technical analysis involves identifying changes in the market. Generally technicians focus on price action but...
THE TECHNICAL TAKE: A WEEKLY TECHNICAL PERSPECTIVEby Robert Dombrower, CMT
Editor’s note: This is an extract of an internal, weekly macro technical research report written solely to address the concerns of the Quantitative Strategies Group (QSG) at ICC Capital Management...
CHART OF THE MONTH
CHART PROVIDED BY SRC The NASDAQ 100 could be undervalued by some measures. Over the past ten years, the index has provided investors with a total return of 9.6% while earnings have risen by an...
New Educational Content This Month
November 22, 2023
Utilizing Trend & Mean Reversion in Breadth Studies to Gauge Market Conditions
Presenter(s): Victor Riesco
November 18, 2023
Beating the Bench
Presenter(s): Scott Brown, CMT
October 25, 2023
Equity Risk & Potential – Q4, ’24 & Beyond
Presenter(s): Timothy Hayes, CMT