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Technically Speaking, February 2007

From the Executive’s Desk

The month of January traditionally sees the start of many initiatives as attention turns to the New Year. The MTA is no different. This past month saw the culmination of several initiatives that was in process and the start of some exciting new initiatives. Let me describe them for you.

On the completed side

  • In Mid-January we held our Mid-Winter Retreat in Miami Beach, Florida. Over 125 seminar attendees, speakers, guests and staff were in attendance. By all accounts this retreat was certainly one of our very best. Over 10 well-known and highly regarded speakers provided a learning environment which allowed for the passing of ideas in a relaxed networking environment. Our Awards dinner continued our time-honored tradition of recognizing our exemplary performers. Please read about the Retreat in the following pages and don’t forget that our May Educational Seminar is right around the corner (May 18th-19th) in NYC. I hope to see you there.
  • By the time you read this newsletter, the MTA headquarter staff will be set up in our new Headquarters facility at 61 Broadway, 5th floor, in NYC. We will slowly transfer phone lines, computers and library materials so we are ALWAYS in touch with our membership base. We will have an “Open House” at the facility in the beginning of March, 2007 and if you are in the town, we would hope you stop by. If not, however, when you are next in NYC, we would urge you to take a couple of minutes and visit us in our new location.
  • Our Annual “Journal” was issued to the membership. Special thanks to our Journal Editor, Charles Kirkpatrick, CMT, for the selection of some of the finest articles in the industry today. We urge you to read through this publication. In addition, Charlie is taking completed articles all the time so if you have a piece that you wish to share, please pass it to Charlie at Kirkco@capecod.net.

This month, we “kicked-off” several initiatives

  • Fred Meissner, CMT as our Volunteer Czar, has developed a process to match volunteers to MTA needs and to ensure this experience is rewarding for all parties. If you are interested in volunteering for certain MTA matters, and I urge you to do so, please contact Fred at Fred@MTA.org.
  • We have commenced a process to capture, through in-depth interviews, some of the early leaders in technical analysis. We owe it to ourselves to capture this wealth of knowledge surrounding the formulation of our industry, and where it is going, from the early leaders of our practice. It is truly a worthwhile initiative in our opinion. It is being led by Messrs. Acampora and Meissner and will be coordinated by our MTA headquarter staff.

On the Horizon

  • We have recently opened registration for the Spring CMT test. Our Window for the examination will be April 26th to May 5th, 2007. We urge you to register early for your exam to ensure the best time and location. You can register on-line or contact Marie Penza at Marie@mta.org for any questions you may have. For this examination, we are planning on providing:
    • A free internet web-cast, led by Chris Ruspi, CMT, on the overall test process, materials for study and best practices to the exam taking, to be held on Feb. 17.
    • A free internet web-cast on the MTA Ethics which is, of course, part of the examination process.

Be on the lookout for announcements on these sessions and please sign-up early.

  • We will provide, as in the past, an internet based tutorial for all parts of the examination (Levels I-III) through our CMT Institute. Our experience in this format continues to grow and gain acceptance by the participants. In addition to the instructor led sessions, we will provide a free web-cast on the technology behind these sessions to ensure that the technology is familiar to you BEFORE the sessions start. See the announcement on the CMTi in this newsletter (see page 4) which includes some testimonials from previous participants.

Be on the lookout for announcements on these sessions as well and again, please sign-up early.

Sincerely,
Tom Silveri
MTA Executive Director

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How They Do It

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Recently, a member suggested that we feature interviews with successful technical analysis practitioners on how they apply technical analysis to make money in the real world. MTA affiliate Matt Caruso agreed to conduct interviews and prepare this feature. MTA President Phil Roth took some time to talk about his day job in late December. Part II of this interview will be published next month. Matt Caruso: What is your professional job description? Phil Roth: Well I’ve been an analyst my whole career, this is my 41st year right now. I’ve been on the sell side with major brokerage firms for most of my career; 11 years at Merrill Lynch, more than 11 years with the E. F. Hutton/Shearson combination, more than 11 years at Dean Witter/Morgan Stanley, and now I’m with an institutional firm and all we do here, is institutional research. So I have a much smaller audience, but an institutional

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)

Matthew Caruso, CMT

Philip J. Roth, CMT

Phil Roth, CMT

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2007 Mid-Winter Retreat MTA Award Recipients

2007 Mid-Winter Retreat MTA Award Recipients

John Bollinger, CFA, CMT On behalf of the MTA Awards Committee I recently had the honor of presenting Service Awards to Shelley Lebeck and Mike Epstein and the MTA Award to David Krell. The presentations were made at the Saturday night Awards Banquet at the 2007 Winter Retreat. Shelley’s award recognized her long-term service to the MTA and its members. Most importantly, it recognized her vital role in the growth of the MTA, nurturing it from a nascent organization to the international powerhouse it is today. Mike Epstein, Sam Hale, Ralph Acampora and Ken Tower spoke for her. Anyone who has met and or worked with Shelley will know how richly deserved this award was. Shelley’s husband, Tom MacMahon, who has also done a lot for the society, accompanied her. Mike Epstein was recognized for his long service to the MTA and his work with the Education Foundation. The focus of the award

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.

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MTA MOVES BACK TO NEW YORK

MTA MOVES BACK TO NEW YORK

As many members and affiliates will remember, the MTA had its global headquarters in the World Trade Center in downtown New York City until the tragic date of September 11, 2001. Shortly thereafter, the staff and facilities were relocated to nearby Woodbridge, New Jersey—an inauspicious location for an Association with ties to Wall Street and the international financial markets. It has always been the intent of the Boards of Directors for the last five years to move the MTA back “home” to New York. By the time most of our readers receive this newsletter, such a move will either have been completed or will be in the final stages of completion.  In early February, the MTA headquarters, staff, and full facilities will be moving to 61 Broadway, Suite 514, New York, NY 10006-2701 (diagonally opposite the corner of Broadway and Wall Street). The new phone numbers are not ready as of 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.

Back to top
Correlation Behavior Between Single Name CDS and Common Stock After Bad Corporate News: 3 Case Studies

Correlation Behavior Between Single Name CDS and Common Stock After Bad Corporate News: 3 Case Studies

Introduction The global credit derivatives market has grown dramatically in recent years. One of the reasons for this dramatic growth is the belief that credit derivative prices are non-correlated to other asset classes, and thus offer portfolio diversification and volatility reduction benefits not available from other instruments. The purpose of this article is to analyze single name CDS spreads in relation to the common stock of three major U.S. listed companies following the recent release of negative company news. I focus on short term price correlation behavior, with the intent to provide some real-world perspective to investors and traders involved in the U.S. CDS market. There is substantial debate whether buying credit default swaps (CDS) or shorting common stocks are effective hedges against bond defaults. Recent events in May 2005 surrounding the downgrade of GM and Ford bonds to junk status indicate that presumed correlation behavior between CDS, bonds, and common stock

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)

Lawrence H. Klamecki, MBA, JD

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New MTA Undertaking: We Need Your Input

New MTA Undertaking: We Need Your Input

When I was President of the MTA, I started thinking about a project that would video some of the older, retired (or still practicing!) Technicians to create an “Oral History” of our craft. Like many ideas we have had over the years, other tasks seemed more important and this kept getting pushed back. The death of Kennedy Gammage, publisher of The Richland Report, on January 3, 2007, has given new impetus to this project (More about Kennedy and his career in the next newsletter). As a young Technician in Los Angeles in the 1980’s, Kennedy was one of my first mentors. Indeed, the first “real live” Technicians I met at the start of my career were Kennedy Gammage and Gene Morgan. I would like the membership’s help in coming up with two lists. The first is a list of prospective interview questions. The idea is to ask each Technician the same

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)

Fred Meissner, CMT

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New Educational Content This Month

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