Technically Speaking, February, 2006

From the Editor’s Desk

First of all, I’m very pleased to report that we are starting to see a little more participation from our Membership, in terms of contributions to your Newsletter, Technically Speaking. However, we still have a long way to go. Ironically, the portion of our Membership that has shown the most interest in contributing to TS has been our ever-growing overseas contingent. For example, in this month’s issue, we have an interesting analysis of the Sensex, the Indian stock market index, by Mohan Turaga, who is actually a Contributing Editor from India.

Equally ironic is that, sadly, most of our Regions here in the States have not responded to our repeated requests for a brief article now and then, just to recap their monthly meetings and generally keep the rest of the Association abreast of what they are doing in their particular area of the country. We have even gone so far as to offer to provide digital cameras to any region that would agree to send us a monthly meeting recap now and then and a couple of pictures. The offer still stands, and I continue to hope the Regions will eventually come around and get more involved.

Moving on to this month’s issue, we lead off with an article on Bow Ties by Dave Landry. This is not about outdated clothing from the 1940s, but rather a relatively new analytical technique (at least to me) that has received some attention recently on the Market List email forum, hosted by our own John Bollinger. Inside, we have an interesting article by Mark Thomas on how the first peers to report during earnings season have a tendency to indicate how the rest of the group will react. In addition, we have included some much-needed and long-overdue levity from MTA Member and CFA Sam Levine entitled “Financial Words You Won’t Hear On TV”.

Finally, since I’m the editor, allow me to editorialize for a moment. During the past several years, your MTA Board (of which I am a member) made a series of changes to the infrastructure of the Association. These changes, based on feedback from you, were designed to improve and professionalize the MTA. Our objective was to bring more professional recognition and respect to Market Technicians, with the ultimate goal of creating more jobs and business opportunities for our Membership. As a result, we made a lot of decisions that, at least to some, were very unpopular. Some harsh words were spoken, and a lot of misinformation was circulated.

But now, a few years later, securities regulators have granted a Series 86 exemption to those that have passed the CMT I and II exams, our testing process has been radically professionalized and is now administered by the same firm that administers the NASD exams, educational classes are now being offered to CMT candidates around the world via our new electronic classrooms, the MTA is offering an array of various benefits and discounts to Members that were never before available, we have installed a new internet platform that allows us to service our Membership in ways that were never before possible, and is backed by a company that serves more than 40 million individuals and 750 member-based organizations, and we have installed a new, eager, professional staff that understands our new technology and direction and is capable of making it all work. Objections aside, I think our Association is moving forward, and quickly, in ways that we can all be proud of. I hope you all feel the same.

John Kosar, CMT
Editor

What's Inside...

From the Executive Director CMT Institute Launched

One of the first events that I had the pleasure of attending shortly after joining the MTA several years ago...

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From the President’s Desk Problems at the MTA

This is a very difficult column to write. The first thing I need to tell you is that there is...

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Bow Ties

My style of swing trading is momentum based. Therefore, in order for me to get excited about a setup, the...

Read More

Sensex Crosses 10,000 Mark... Monday, February 13, 2006

Indian stock market index, Sensex which is the 30 share sensitive index of Bombay Stock exchange crossed the 10,000 mark...

Read More

Gaps that Give Up the Ghost: Positive Correlations and Covariance with Event-Driven Peer Group Price Reactions

As a measure for sector out-performance, relative strength naturally highlights areas that are doing well in the stock market. When...

Read More

New York Region Monthly Meeting

Below are some pictures that were taken form January 17th, during the New York Region monthly meeting. This even featured...

Read More

Financial Words You Won’t Hear on TV

Financial people talk in shorthand to communicate a large amount of information quickly. After twelve years of listening to boring...

Read More

From the Executive Director CMT Institute Launched

One of the first events that I had the pleasure of attending shortly after joining the MTA several years ago was a monthly meeting that was webcast to a worldwide audience. I recall the speaker Jeff Weiss fielding questions from MTA members in Lebanon and the UK as well as around the USA. At the time, it was my hope that this technology would...

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)

John R. Kirby

Bio Coming

From the President’s Desk Problems at the MTA

This is a very difficult column to write. The first thing I need to tell you is that there is a major problem with our staff in Woodbridge. It is simply this….I have not had a complaint about them or from them since I can remember. They have become, in my opinion, without a doubt, simply the most professional, courteous and efficient staff the...

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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)

Jordan Kotick, CMT

Bio Coming Soon.

Bow Ties

My style of swing trading is momentum based. Therefore, in order for me to get excited about a setup, the stock must first trend strongly in the intended direction of the trade. Requiring such strong momentum has helped to keep me on the right side of the market. However, I found that it often kept me out of stocks that were in the early...

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)

Dave Landry

Dave Landry has been have been actively trading the markets since the early 90s. In 1995 he founded Sentive Trading, LLC, a trading and consulting firm. He is author of Dave Landry on Swing Trading (2000), Dave Landry’s 10 Best Swing Trading...

Sensex Crosses 10,000 Mark... Monday, February 13, 2006

Indian stock market index, Sensex which is the 30 share sensitive index of Bombay Stock exchange crossed the 10,000 mark on Feb. 6th 2006 and is closed at 10,173 on Monday, February 13, 2006. The rise of the Sensex to 10,000 level was faster than most people expected. The broader index Nifty, a composite of 50 leading stocks, also crossed 3000. Nifty closed at...

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)

Mohan Turaga

Mohan Turaga is a Chemical engineer and a Petroleum refiner by profession. He worked for 20 years for Indian Oil Corporation (IOC) and voluntarily separated from IOC with a liberal retirement package at the age of 46. Now, at 51 years of...

Gaps that Give Up the Ghost: Positive Correlations and Covariance with Event-Driven Peer Group Price Reactions

As a measure for sector out-performance, relative strength naturally highlights areas that are doing well in the stock market. When coupled with the fundamental screens that are commonly used by growth fund managers, the larger macro themes in play can then be further scrutinized to isolate which individual issues are behind any given group that is outrunning the broader indices. The big picture at...

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)

Mack Thomson

Mack Thomson, a dual national of the U.S. and the UK, has been an Affiliate of the MTA since 2000 and a stockbroker since the late 1990s. Based in Miami, Mack’s trading concentrates on set-ups that are both event-driven and technically derived...

New York Region Monthly Meeting

Below are some pictures that were taken form January 17th, during the New York Region monthly meeting. This even featured Jordan Kotick, CMT, the President of the MTA, Steven Poser, Regions Committee Chair, and Barry Sine, CFA, CMT, Seminar Committee and Audit Committee Chair. These gentlemen spoke about the current status and future of the MTA. The New York Region monthly meetings are now...

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)

Financial Words You Won’t Hear on TV

Financial people talk in shorthand to communicate a large amount of information quickly. After twelve years of listening to boring phrases like, “chasing yield”, and “way overweighted in…”, it’s time to bring in some new words and phrases. Here are a few that I came up with:

Alicrony: When friends from a previous life pop up to borrow money that will never be repaid....

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)

Sam Levine, CMT, CFA

BIO COMING