I hesitate to use that headline because of the obvious political overtones. But I cannot think of more appropriate words to describe what the MTA has done or a group that is more deserving of this victory. By now you probably know that the NYSE has filed a rule interpretation with the SEC that recognizes CMT 1 and CMT 2 as an alternative to the Series 86 examination required for all financial analysts employed by member firms. Without this  exemption, many of you would have had to take an exam that was entirely irrelevant to the practice of your profession. However, the significance of this recognition of the CMT and the MTA by the NYSE is far broader than that. The text of the initial memo from NYSE is reprinted below. But the more important words were in the 28 page document filed with the SEC. It said in part… “Exchange staff

SUBJECT: RULE 344 – RESEARCH ANALYST QUALIFICATION EXAMINATION (“SERIES 86/87”) FOR TECHNICAL RESEARCH ANALYSTS The New York Stock Exchange has submitted a rule filing with the Securities and Exchange Commission to provide for an alternative qualification standard for Part I (Series 86) of the Research Analyst Qualification Examination for analysts that prepare technical research reports. This alternative is similar to the CFA exemption approved by the SEC (see NYSE Information Memo 04-16, dated April 1, 2004). The exemption would permit research analysts who have passed Levels I and II of the  Chartered Market Technician (“CMT”) Program and who only prepare technical research reports, to obtain an exemption from the Series 86 examination. Similar to the CFA exemption, an analyst granted an exemption from the Series 86 examination will be qualified as a Research Analyst only after passing Part II (Series 87) of the Research Analyst Qualification Examination and the prerequisite examination

Drew disagreed with the popular misconception, highlighted by the media, that odd lot investors were “always wrong.” He advocated a deeper analysis: Odd-lot trading represents speculative activity, as it is carried out by small investors. Odd-lot investors don’t initiate trends. They join a rising or a declining trend after the trend has started and has become well-established. The balance of odd-lot buying and selling should be maintained. A ratio of Sales/Purchases is the best representation of the balance. Odd-lot indexes have an excellent record in pointing the climactic bottoms, but not as good in pointing the tops. It is not the levels of odd-lot buying and selling that count, but rather the trend of sentiment indicated by the balance of odd-lot trading that is important. Pay attention to sudden and significant changes in the levels of odd-lot buying and selling, as a change in trend may be occur. Odd-lot indexes are not perfect indicators.

Over the weekend of January 21-23 the MTA hosted it first annual mid-winter retreat in warm and sunny San Diego, CA. Our timing was perfect as the worst blizzard of the century was pummeling the East Coast with over a foot of snow. The retreat was attended by about 50 individuals who gathered for round table sessions and keynote presentations by two leading technicians. The keynote lunch sessions were presented by John Bollinger and Richard Russell, perfectly underscoring how both the “art” and “science” camps of our field have made major contributions to our craft. Attendees represented a mix of traders, sellside analysts, consultants and portfolio managers. Topics ranged from the presidential cycle, to DeMark to Elliott. In his keynote speech, John Bollinger paid tribute to the decades of contributions by the late Art Merrill. John explained how Mr. Merrill was a major contributor to our field, despite the fact that

As of January 31, 2005 there are 342 people who have received the CMT designation. Of this number, 47 have both the CFA and CMT designations. These numbers are not a misprint. There was an article written a few months ago that said there were 350 people who had both CMT and CFA, but it was obviously incorrect. TO ALL CFAs – please make sure you are in the count of those who have received CFA and CMT designations. Check your record in the MTA database to see if your CFA is there. If not, send an email to cmt@mta.org asking to have it added to your name. The Accreditation Committee reports the following passing rates for the November 2004 CMT exams: CMT Level 1 76% CMT Level 2 61% CMT Level 3 33% Congratulations to the following who were granted the CMT designation since the last report in the January/February 2004 issue of Technically Speaking: Amir Arif Richard