
LETTER FROM THE EDITOR
In February, the MTA is recognizing Women in Finance and will be featuring webcasts by experts in technical analysis who also happen to be women. We have tried to recognize the contributions some women have made to technical analysis in this issue of Technically Speaking.
The MTA has a long history of recognizing the role of women in finance including Bernadette Murphy, CMT, who served as the fifth president of the organization in 1977. We also briefly highlight the work of another past President, Gail Dudack, CMT, in this month’s newsletter along with brief articles about the work of Louise Yamada, CMT and Jeanette Schwarz Young, CFP, CMT.
While celebrating the fortieth anniversary of the MTA, it is interesting to note that the MTA has always focused on “attract(ing) and retain(ing) a membership of professionals devoting their efforts to using and expanding the field of technical analysis and sharing their body of knowledge with their fellow members.” Those words in found in the MTA constitution and history shows that women just happen to have been among the leading contributors to the body of knowledge over the years.
We would appreciate receiving any comments you have on the newsletter, which can be emailed to editor@mta.org.
Sincerely,
Michael Carr
What's Inside...
APPLYING STANDARD TOOLS IN UNIQUE WAYS
by Louise Yamada, CMTLouise Yamada, CMT, is Managing Director of Louise Yamada Technical Research Advisors (LYA), the firm she founded in 2005 after a 25-year career at Smith Barney (Citigroup) where she had been...
EXPLAINING COMPLEX IDEAS IN SIMPLE TERMS
by Gail Dudack, CMTGail Dudack, CMT, now the Managing Director of Dudack Research Group a division of Wellington Shields & Co. LLC., is an analyst who has enjoyed a long and successful career by delivering clear...
DETAILED OPERATIONAL KNOWLEDGE CAN LEAD TO SUCCESS
by Jeanette Schwarz Young CMT, CFP, CFTe, MSThe successful career of Jeanette Schwarz Young, CFP, CMT, demonstrates the importance of understanding how markets work. She understands the theory of technical analysis and can demonstrate how to...
INTERVIEW WITH LASZLO KOVACS, CMT
by Laszlo Kovacs, CMT & Amber Hestla-BarnhartHow would you describe your job? I am an asset manager and also deal with financial risk management in the insurance industry. What led you to look at the particular markets you specialize...
GEORGE LINDSAY’S “AN AID TO TIMING” ANNOTATED EDITION
by Ed Carlson & Michael Carr, CMTIn 2011, Ed published George Lindsay and the Art of Technical Analysis, bringing the work of a forgotten technician to the attention of a new audience. Lindsay used counts to precisely identify...
A TECHNICAL GUIDE FOR DOMESTIC ETF PORTFOLIOS
by Jonathan BeckEditor’s Note: This is a weekly report developed by Jonathan Beck using a classical technical approach to investing. This approach is intended to uncover trends, patterns, relative strength...
THE THIRD: A KEY TO TOPS AND BOTTOMS IN THE DOW
by Scott Hathaway, CFTeINTRODUCTION AND FOUNDATION “3 shall be the number thou shall count, and the number of the counting shall be three…” The Monty Python reference not-withstanding, the number 3 generates much...
CONNORS RSI: UPDATES AN OLD INDICATOR WITH MODERN TOOLS
by Michael Carr, CMTTechnical analysis is a mixture of old and new tools. Dow Theory was developed more than one hundred years ago at a time when even handheld calculators were unavailable. Actually many of the most...
Louise Yamada, CMT, is Managing Director of Louise Yamada Technical Research Advisors (LYA), the firm she founded in 2005 after a 25-year career at Smith Barney (Citigroup) where she had been Managing Director and Head of Technical Research. In order to have a long career, it is important to offer valuable market insights and Louise continues to do that. She was recently in the headlines for her analysis of the bond market and her opinion that emerging markets are set up to outperform U.S. equities in the next few years. Jeff Macke of Yahoo! Finance Breakout introduced Louise as a “national treasure” in their interview which can be seen at http://go.mta.org/3347. Summaries of that interview focused on comments Louise made about emerging markets and bonds. These opinions are based on long-term trends: “Emerging markets have for this little period of time started to turn up at their eleven year uptrend. We’ve had about
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)

Louise Yamada, CMT
Louise Yamada is the Managing Director of Louise Yamada Technical Research Advisors (LYA), which she founded in 2005. Previously, she was Managing Director and Head of Technical Research for Smith Barney (Citigroup), and while there, was a perennial leader in the Institutional...
Gail Dudack, CMT, now the Managing Director of Dudack Research Group a division of Wellington Shields & Co. LLC., is an analyst who has enjoyed a long and successful career by delivering clear forecasts and research. Gail is also a past President of the MTA and has a number of other honors on her resume which serve as recognition of her ability to concisely present detailed analysis of the complex problems that she encounters in the markets and in business. Her career also shows that markets evolve and successful analysts adapt to those changes. In The Heretics of Finance by Andrew W. Lo and Jasmina Hasanhodzic (Bloomberg Press 2009), Gail noted that she discovered technical analysis working on Wall Street at a summer job while in college. Inspired by that job, she selected two topics related to technical analysis for her senior thesis – short interest and odd lots. While these
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)

Gail Dudack, CMT
Gail M. Dudack is the managing director of Dudack Research Group, an independent institutional research firm that provides economic, fundamental, quantitative and technical strategy and tools to mutual funds, hedge funds and private money managers. Dudack Research Group is a...
The successful career of Jeanette Schwarz Young, CFP, CMT, demonstrates the importance of understanding how markets work. She understands the theory of technical analysis and can demonstrate how to apply that theory to charts. She combines this knowledge with a detailed understanding of how markets actually work and is an expert on options markets. This expertise allows her to not only apply the tools of technical analysis but also to understand firsthand the impact changes in supply and demand are having on prices. Her skills have been developed over years of trading options on and off the exchange floor. Detailed market knowledge can help technical analysts understand why some indicators work better than others. This knowledge can also help when building strategies to implement insights based on price charts. It is a combination of skills that many analysts never develop and success can be obtained without understanding how markets work but
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)

Jeanette Schwarz Young CMT, CFP, CFTe, MS
Jeanette Schwarz Young, who holds a Chartered Market Technician (CMT) designation, is a Technical Analyst and Portfolio Manager at Kensington Capital. She is also the author of the Option Queen Letter, a weekly newsletter issued and published every Sunday, and...
How would you describe your job? I am an asset manager and also deal with financial risk management in the insurance industry. What led you to look at the particular markets you specialize in? I have been managing assets for a multinational insurance company operating in Central and Eastern Europe for more than a decade and prior to that I also managed pension fund and investment fund assets focusing on the same markets. These balanced portfolios made me focus on fixed income, equities and forex markets and those are the markets that I still follow. Do you look at any fundamental or economic inputs to develop your opinions? Having fundamental opinions is always crucial for several reasons. But what I would emphasize the most is that fundamentals drive the sales stories, the leading articles in financial dailies, as well as the retail sales forces, thus fundamentals become the utmost concern of the end clients. Not
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)

Laszlo Kovacs, CMT
Laszlo Kovacs, CMT, is the head of Asset Management and Risk Management at UNIQA Hungary, a position he has held since 2012. Prior to that, Laszlo was a Regional Asset Manager at UNIQA Group’s Central and Eastern Europe (CEE) divisions in Vienna, Austria. He was responsible...

Amber Hestla-Barnhart
Bio coming
In 2011, Ed published George Lindsay and the Art of Technical Analysis, bringing the work of a forgotten technician to the attention of a new audience. Lindsay used counts to precisely identify market tops and bottoms in advance. For those who are unfamiliar with Lindsay’s work, the general concept behind his approach to the markets is summarized by Joe Granville, who quotes Lindsay in the introduction this book: How is it that such very long-term counts prove accurate to the very day, or close to it? As we all know to our sorrow, the market is made up of a succession of advances and declines of widely varying duration. No two of them seem to be of exactly the same length. My theory is that, unequal as they are, they always come out even in the end. Such seems to be the nature of price movements. Counts are the also the basis of
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)

Ed Carlson
Ed Carlson, who holds a Chartered Market Technician (CMT) designation, is the Chief Market Technician at Seattle Technical Advisors. He has close to 30 years of experience in the markets, and is a leading expert on George Lindsay's market timing methods. Seattle Technical...

Michael Carr, CMT
Mike Carr, who holds a Chartered Market Technician (CMT) designation, is a full-time trader and contributing editor for Banyan Hill Publishing, a leading investment newsletter service. He is an instructor at the New York Institute of Finance and a contributor to various...
Editor’s Note: This is a weekly report developed by Jonathan Beck using a classical technical approach to investing. This approach is intended to uncover trends, patterns, relative strength leaders, and other potential profitable trades by revealing the leading and lagging equity sectors. It is reprinted as an example of a comprehensive way to develop technical research that can be used to manage equity portfolios using Exchange Traded Funds. It was originally published on January 28, 2013 and is reprinted with permission. BIG CALLS ARE NOT MADE EVERY DAY, BUT WHEN THEY ARE, WE WILL MAKE A BIG DEAL OF THEM. In this report the goal of our sector allocation will be to tactically outperform the S&P 500 on a relative basis. We will adjust our portfolio weightings by maneuvering into leading sectors and shying away from the losers, at least from a technical perspective assuming a 1-3 month timeframe. My objective is
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)

Jonathan Beck
Jonathan Beck brings over 10 years of buy/sell-side equity research experience to the table at J. Beck investments. He has previously spent more than half of his career working exclusively as a technical analyst on one of the most well respected technical analysis teams on Wall...
INTRODUCTION AND FOUNDATION “3 shall be the number thou shall count, and the number of the counting shall be three…” The Monty Python reference not-withstanding, the number 3 generates much curiosity for me in the markets. Usually this involves linking 3 with its inversion (1/x) of ‘1/3’; dividing 90 degrees into thirds providing the ever useful 30 degrees and 60 degrees; dividing a price range into thirds of 33.3% and 66.6%; or linking reversals with any combination of 3 and these facets of thirds. (Author’s note: Short on time? Please by all means skip the nitty-gritty and jump to the last few charts for patterns and projected resistance levels.) Editor’s note: the conclusion is bullish. But lately I have found a new ‘mathematical toy’, 1/3 of 10 (the basis of our counting system), or ‘3 to infinity’: 10 /3 = 3^(1/3) = 3.33333333333333333333333333333… And, even seemingly further off topic of the markets is, of course, its partner
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)

Scott Hathaway, CFTe
Scott Hathaway, CFTe is the Co-Founder and Manager of Pattern to Profit, LLC, a new independent technical investment research firm utilizing unique geometric analysis of global markets. A musician by trade, Scott committed to the constant study, exploration and...
Technical analysis is a mixture of old and new tools. Dow Theory was developed more than one hundred years ago at a time when even handheld calculators were unavailable. Actually many of the most popular charting techniques were developed before calculators, as were relatively simple indicators like moving averages. The history of the McClellan Oscillator, a story told by Sherman McClellan and brought online by his son Tom McClellan, illustrates the techniques applied to developing indicators before the 1980’s. Sherman offered some insights into how breakthroughs in technical analysis were made n a 2004 MTA Annual Symposium presentation. He was inspired by P.N. Haurlan who first used exponential moving averages (EMAs) for tracking the stock market in the 1960’s. EMAs were new at that time and would be used to calculate the McClellan Oscillator. From Tom’s web site: “As a Christmas gift in 1968, (Sherman’s wife) Marian gave me some chart paper
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)

Michael Carr, CMT
Mike Carr, who holds a Chartered Market Technician (CMT) designation, is a full-time trader and contributing editor for Banyan Hill Publishing, a leading investment newsletter service. He is an instructor at the New York Institute of Finance and a contributor to various...
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