Letter from the Editor
In this month’s issue of Technically Speaking, we offer several short articles that could stimulate some fresh thoughts on the markets.
John R. McGinley, CMT, offers details on a reliable January indicator. What is interesting about his work is that he includes a test of statistical significance, a step lacking in most articles written about technical indicators. We are also reprinting a very readable explanation of the chi squared test written John’s friend and mentor, the late Arthur Merrill, CMT.
We follow this with some very specific trading lessons. Mike Moody, CMT, quantifies how much following a disciplined approach can be worth in “The $ Value of Patience.” Ken Winans, CMT, contributes an article which shows that simple strategies can work very well. David Penn of TradingMarkets.com also explains a specific trading strategy. Bob Palmerton, CMT, provides details on a disciplined way to look at the markets each day.
Finally, we have some reviews of trading tools developed by MTA members. We are always happy to bring your work to the attention of others. Books can be reviewed as Adobe files so that the article can be published at the time the book is being formally released. Please email us at firstname.lastname@example.org to arrange for a review, or to contribute an article that will be read by thousands of MTA members and affiliates around the world.
Mike Carr, CMT
World’s Best January Indicatorby John R. McGinley, CMT
(If the 1st five days are net up, the year will be up. If down, no prediction, a coin-toss) This is hands-down THE best of the January Indicators. This year for only the second time in six years, the...
Chi Squaredby Arthur Merrill, CMT
Editor’s Note: Arthur Merrill, CMT, was a leading advocate of the need to apply statistical rigor to technical analysis methods. He frequently employed the Chi squared test to assess the validity...
The $ Value of Patienceby Mike Moody, CMT
This article was originally published at Systemic Relative Strength, the official blog of Dorsey Wright Money Management on January 6, 2010. It is reprinted here with permission. Additional articles...
Buy and Hold Investing: Bonds-Yes & Stocks-No!by Ken Winans, CMT
Every bull market produces its fair share of “proven” investment strategies that promise easy riches. During the “Roaring 1920’s”, buying equities with high levels of margin debt was...
Moving Averages: ETF Strategies for Short Term Tradersby David Penn
What are the two most important moving averages for short-term, high probability ETF traders? Moving averages are a very popular tool, and are a key ingredient in many trading strategies. Moving...
Baseline Analytics’ Market Tourby Robert F. Palmerton, Jr., CMT
At the close of each trading day, Baseline Analytics conducts a streamlined yet comprehensive review of the financial markets. To short-cut the time spent reviewing the markets without compromising...
Fibozachi – Taking the Trading World by Stormby Deberah Bringelson
The first thing you’ll want to know is were the name comes from. Fibozachi is a combination of the words Fibonacci and Zachary. Fibozachi.com is the creation of two brothers who combined...
The FOG Index: Recognizing Extremes of Fear and Greed in the Financial Markets by Jeff Cheah, CMT, and Russel D. Ogdenby Jeff Cheah & Russel D. Ogden & Michael Carr, CMT
In a short book about 80 pages in length, Cheah and Ogden introduce the FOG Index, an indicator offered exclusively to subscribers of Thomson Reuters’ DataStream and 3000 Xtra products. However,...
MTA Website Orientation Video – New! Over the course of the last month the MTA has gone through the process of creating an orientation video for our mta.org website. The purpose of this video...
New Educational Content This Month
October 22, 2021
Systematic Multiple Time Frame Investing
Presenter(s): Bill Kelleher, CMT, CFA
October 20, 2021
Volume Analysis Series (Part 3): Volume Analysis with Indexes
Presenter(s): Buff Dormeier, CMT
October 13, 2021
Understanding Market Internals to Identify Turning Points
Presenter(s): Mike Hurley, CMT