LETTER FROM THE EDITOR
Just four months after the winner of the 2015 Charles H. Dow Award was recognized it’s time to plan for the 2016 Award. This month we are announcing the deadlines for the Award. Although there are several months before papers are due, planning and writing the papers is a large undertaking. We hope many of you will begin that pursuit. This month’s newsletter also includes an admission by one of Wall Street’s most-respected strategists that technical analysis is an important component of his work. Byron Wien, a name familiar to many readers, credits technical analysis with turning his career around. We also have research on market liquidity, a growing concern especially in the fixed income markets. Liquidity is a major factor in supply and technical analysis is dedicated to the study of supply and demand. Changes in market structure could make price action more volatile. As this article highlights, we have already seen several liquidity-related market events and are likely to see more. The potential implications of liquidity changes are important to technicians and we hope you’ll find this research to be useful. Please let us know which areas of research interest you by emailing us at firstname.lastname@example.org.
TREND FOLLOWINGby Riccardo Ronco & Michael Carr, CMT
Editor’s note: Riccardo Ronco, CFTe, is the head of technical analysis at Aviate Global in London. He provided an overview of the benefits of trend following strategies at the MTA Annual Symposium...
BYRON WIEN IS A CLOSET TECHNICIANby Michael Carr, CMT
Economist Byron Wien is well known for his annual list of ten surprises. Less well known is Wien’s reliance on technical analysis to develop his more traditional market forecasts. In a recent Wall...
DOW HIGHLIGHTS: DOES KIRKPATRICK'S AWARD WINNING STRATEGY STILL WORK?by Michael Carr, CMT
In 2001, Charles D. Kirkpatrick II, CMT, received the Charles H. Dow Award for his paper, Stock Selection: A Test of Relative Stock Values Reported over 17 ½ Years. The paper included results of a...
IT REALLY IS DIFFERENT THIS TIMEby Jeremy Grantham
Editor’s note: Jeremy Grantham is a widely-followed market analyst who has made a detailed study of bubbles. In the most recent quarterly letter to clients of his firm, GMO, he addressed the...
THE DEATH OF THE ZIMBABWE DOLLARby Dr. Bryan Taylor
Editor’s note: this article was originally published at the Global Financial Data blog and is reprinted here with permission. The government of Zimbabwe announced this week that they were finally...
MARKET PRICES AND INFLATION, DEFLATION AND HYPERINFLATIONby Michael Carr, CMT
Editor’s note: Dr. Taylor’s research inspired a search for hyperinflation in the world today. That search led to Venezuela and that country’s stock market shows the impact of...
INTERVIEW WITH NUTTAPOL KAMWONGSA, CMTby Amber Hestla-Barnhart
How would you describe your job? I work for an Asset Management firm where I work in a dual job as a technical analyst for the investment team and also as a buy-side trader who handles orders for the...
BLOOMBERG BRIEF HIGHLIGHTS: A RECIPE FOR CHECKING U.S. SECTOR LEADERS AND LAGGARDSby Cedric Thompson, CMT
Editor’s note: This article was originally published in the July 30 issue of Bloomberg Brief: Technical Strategies. Below is an extract of that article. In the same way that recipes can improve...
RESEARCH UPDATE: MARKET LIQUIDITY: A PRIMERby Douglas J. Elliott, Fellow, Economic Studies at the Brooking Institution
Editor’s note: this paper was originally published at The Brookings Institution web site. It is reprinted here because it provides into the supply side of markets, a critical area of study for...
ETHICS CORNER: DUTIES TO EMPLOYERS
When leaving a job, is it ethical to take old files and code for technical models you developed over the years? Under the Code of Ethics and Standards of Practice, members have significant...
CHART OF THE MONTHby Frank Teixeira, CMT, CFA
Editor’s note: while the Chart of the Month usually highlights a market of interest, this month’s chart highlights a potential investment management business opportunity that could be of interest...
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