Technically Speaking, August 2014

LETTER FROM THE EDITOR

Technically Speaking includes an interview with a practicing technical analyst almost every month. This month, we feature Amber Hestla-Barnhart’s exchange with Cynthia A. Kase, CMT, MFTA. Cynthia’s interview is striking for several reasons.

A standard question in each interview is “What advice would you have for someone starting in the business today?” The answers to this question are always interesting. This month, Cynthia provides a list of what every technician should consider as they strive for success. All readers, new and experienced analysts, should consider spending a few hours working
through this list.

Cynthia lists 13 short pieces of advice in her answer. Each one of them is important. Technical analysts, and any other professional, will need to “be realistic about the “cost” of meeting your goals. Be prepared to “pay the price.” The other twelve items on the list are equally succinct but could require hours of thought to understand.

If you find these interviews and our other content to be valuable, or if you would like to be the subject of an interview, please email us at editor@mta.org to provide your thoughts.

Sincerely,
Michael Carr

What's Inside...

THE REPEATING STORY OF ON BALANCE VOLUME

Editor’s note: This is a brief abstract of the 2013 Charles H. Dow Award winning paper.

For readers who are...

Read More

HOW THE CHARLES H. DOW AWARD BEGAN

I was invited to write about the beginnings of the Charles H. Dow Award. This article looks back at the...

Read More

INTERVIEW WITH CYNTHIA KASE, CMT, MFTA

How would you describe your job?

Well I wouldn’t really ask the question that way. I would ask, “What do...

Read More

BLOOMBERG BRIEF HIGHLIGHTS CHART PATTERNS IN STOCKS AND NATURAL GAS

In the July 24 issue of Bloomberg Brief Technical Strategies, Bloomberg’s analysts detailed developing chart patterns could have in two...

Read More

A QUICK REVIEW OF THE VENN CIRCLE SACRED STOCK INDEX

Fundamental data can be charted and analyzed. The chart below illustrates this point. The price-to-earnings (P/E) ratios of the stocks...

Read More

GLOBAL MACRO TRADING BY GREG GLINER

What information does a trader really need? There are a number of ways to answer this question but most readers...

Read More

TRADING OPTIONS USING TECHNICAL ANALYSIS TO DESIGN WINNING TRADING TRADES BY GREG HARMON, CMT, CFA

The title of this book, Trading Options Using Technical Analysis to Design Winning Trading Trades, summarizes the book. This is...

Read More

MTA CHAPTER REPORT: CHARLESTON, SC

Let me begin by saying if there are any readers out there who are considering starting a chapter in their...

Read More

CHART OF THE MONTH

On Balance Volume (OBV) is charted for ETFs tracking several major market indexes from around the world. These charts were...

Read More

THE REPEATING STORY OF ON BALANCE VOLUME

Editor’s note: This is a brief abstract of the 2013 Charles H. Dow Award winning paper.

For readers who are not familiar with the indicator, On Balance Volume (OBV) is designed to measure whether there is more buying or selling pressure in the market. It is a cumulative indicator, always adding the current day’s value to the previous value of the indicator. OBV is...

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)

George A. Schade, Jr., CMT

George A. Schade, Jr., who holds a Chartered Market Technician (CMT) designation, has written extensively about the people and innovations that have advanced the field of technical analysis within financial markets. A member of the CMT Association since 1987, he has written about...

HOW THE CHARLES H. DOW AWARD BEGAN

I was invited to write about the beginnings of the Charles H. Dow Award. This article looks back at the first five years of what is today a preeminent honor for market technicians. As the Associate Editor of the then Market Technicians Association Journal, I became involved in late 1993 in the dream that led to the Award.

The seminal idea was recognizing 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)

George A. Schade, Jr., CMT

George A. Schade, Jr., who holds a Chartered Market Technician (CMT) designation, has written extensively about the people and innovations that have advanced the field of technical analysis within financial markets. A member of the CMT Association since 1987, he has written about...

INTERVIEW WITH CYNTHIA KASE, CMT, MFTA

How would you describe your job?

Well I wouldn’t really ask the question that way. I would ask, “What do you do professionally?”

I don’t really think of myself as having a job, per se, as I have owned and operated my own business, Kase and Company, Inc., since 1992. The company has two foci. One is providing hedging and trading advisory services and...

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)

Cynthia A. Kase, CMT, MFTA

Cynthia A. Kase, CMT, MFTA is the president of Kase and Company, Inc. CTA, founded in 1992. With a BS UMass and an ME Northeastern, both in chemical engineering, she worked in that field for 10 years before beginning her trading career at...

Amber Hestla-Barnhart

Bio coming soon.

BLOOMBERG BRIEF HIGHLIGHTS CHART PATTERNS IN STOCKS AND NATURAL GAS

In the July 24 issue of Bloomberg Brief Technical Strategies, Bloomberg’s analysts detailed developing chart patterns could have in two important markets.

In Nasdaq Composite Index Showing Larger-Than-Normal Bearish Divergence, Paul Ciana, CMT wrote:

“Fewer components within the Nasdaq Composite are participating as the index advances to new highs, a possible signal of a larger-than-normal correction. The index is also showing a lack 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)

A QUICK REVIEW OF THE VENN CIRCLE SACRED STOCK INDEX

Fundamental data can be charted and analyzed. The chart below illustrates this point. The price-to-earnings (P/E) ratios of the stocks in the Venn Circle Sacred Stock Index are shown. P/E ratios are calculated using forward earnings for fiscal year (FY) 2015 for each company. The multiples for each of the 13 stocks co-exist in the US Stock Market Venn Circles.

Contributor(s)

John Bougearel, CMT

John Bougearel, CMT, is a founder and principal of Structural Logic Inc, a Commodity Trading Advisor.  Structural Logic incorporated in August 2000 as a financial newsletter and later became a CTA, offering managed futures accounts to clients in 2012. John’s career in...

GLOBAL MACRO TRADING BY GREG GLINER

What information does a trader really need? There are a number of ways to answer this question but most readers will find many of the answers to be inadequate. For some, the answer will be that a trader just needs a chart and a current quote. For others, the answer will involve various indicators or wave counts. The truth is that in the modern...

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)

Michael Carr, CMT

Mike Carr, who holds a Chartered Market Technician (CMT) designation, is a full-time trader and contributing editor for Banyan Hill Publishing, a leading investment newsletter service. He is an instructor at the New York Institute of Finance and a contributor to various additional...

TRADING OPTIONS USING TECHNICAL ANALYSIS TO DESIGN WINNING TRADING TRADES BY GREG HARMON, CMT, CFA

The title of this book, Trading Options Using Technical Analysis to Design Winning Trading Trades, summarizes the book. This is a comprehensive look at what options are and how these trading instruments can be traded. This is a unique work because it provides basic knowledge about the subject along with detailed strategies that can be applied in the markets.

Contributor(s)

Michael Carr, CMT

Mike Carr, who holds a Chartered Market Technician (CMT) designation, is a full-time trader and contributing editor for Banyan Hill Publishing, a leading investment newsletter service. He is an instructor at the New York Institute of Finance and a contributor to various additional...

MTA CHAPTER REPORT: CHARLESTON, SC

Let me begin by saying if there are any readers out there who are considering starting a chapter in their area; do it! The MTA is greatly supportive of its members who are willing to put in the time and effort to start their own chapter.

To start, I’d like to give a bit of background on our chapter in Charleston, South Carolina. Back...

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)

Trent Derrick

Trent Derrick is an Independent Financial Advisor and Chief Market Technician at Legacy Wealth Management in Mt. Pleasant, South Carolina. Outside of the Legacy Offices, Trent acts as chairman of the CMT Association’s Charleston Chapter. In addition to this, he serves as...

CHART OF THE MONTH

On Balance Volume (OBV) is charted for ETFs tracking several major market indexes from around the world. These charts were created at Stockharts.com.

SPDR S&P 500 ETF (NYSE: SPY)iShares Russell 2000 (NYSE: IWM)

Contributor(s)