LETTER FROM THE EDITOR
Many publications are dedicating January issues to a look at the year that was or a forecast for the year that is to be. We decided to ignore time and in this issue of Technically Speaking we review timeless techniques.
Gaps, for example, have been a part of charts for hundreds of years and will always be visible on charts. This month, we review the Dow Award-winning paper written by Julie R. Dahlquist, PH.D., CMT and Richard J. Bauer, JR., PH.D., that explains how to trade gaps.
Relative strength (RS) is also a technique that has worked for decades and is likely to continue providing useful trade signals in the future. John Lewis, CMT, from Dorsey Wright & Associates, expands on how RS can be applied to generate profits. Looking a little bit ahead, Tom Dorsey, co-founder of Dorsey Wright & Associates, will have more insights into successful strategies at the MTA Symposium in March.
Bloomberg recently highlighted a useful application of the relative strength index (RSI) in Bloomberg Briefs and a summary of that information is presented here. Andrew Thrasher, CMT, then explains how copper has been replaced by semis in the modern economy as a stock market indicator.
While trend lines have been useful in the past and will be useful in the future, Greg Schnell, CMT, demonstrates that they can be applied incorrectly. In an article that does provide a specific forecast for 2015, Mark Ungewitter uses timeless techniques like the Dow/Gold ratio, cycles, market breadth and the Coppock Curve to look at the stock market.
Although we try to provide articles that will interest everyone, if we aren’t featuring a topic you find interesting, please let us know what you’d like to see more of by emailing us at email@example.com.
ANALYZING GAPS FOR PROFITABLE TRADING STRATEGIESby Julie Dahlquist, Ph.D., CMT & Richard J. Bauer, Jr. Ph.D., CFA, CMT
Editor’s note: This is a brief abstract of the 2013 Charles H. Dow Award winning paper. Gaps have attracted the attention of market technicians since the earliest days of stock charting. A gap up...
RELATIVE STRENGTH AND PORTFOLIO MANAGEMENTby John Lewis, CMT
Editors’ note: This paper was originally published as a white paper by Dorsey Wright & Associates Money Management. It was republished here as an introduction to the type of work done by...
BLOOMBERG BRIEF HIGHLIGHTS RSIby Paul Ciana, CMT
In the December 23 issue of Bloomberg Brief Technical Strategies, Bloomberg analyst Paul Ciana, CMT, offered insights into how RSI can be used to identify long-term trends in the stock market. In...
DR. COPPER HAS BEEN REPLACEDby Andrew Thrasher, CMT
Editor’s note: Intermarket relationships are important but they can change over time. It is important to consider the reason a relationship exists and to watch for changes in economic fundamentals...
TREND LINE BREAKS - THE DIFFERENCE IN THE DISPLAY MAKES THE TIMING CRITICALby Greg Schnell, CMT, MFTA
Editor’s note: This was originally posted at the StockCharts.com Chart Watchers blog on December 20, 2014 and is reprinted here with permission. Technicians are a serious bunch. When we get a trend...
DAVID BLAKE, CMTby David Blake, CMT & Amber Hestla-Barnhart
How would you describe your job? I work for a small research firm called Computrade Systems in Atlanta, GA that provides a web-based research product for retail and professional money managers. The...
THE YEAR AHEAD – 2015by Mark Ungewitter
Editor’s note: This was originally published at SeekingAlpha.com by Mark Ungewitter, a Vice President at Charter Trust Company. The entire presentation, including Mark’s outlook for bonds, gold,...
CHART OF THE MONTH
StockCharts.com has created an indicator called the StockCharts Technical Ranking (SCTR) created by John Murphy. The SCTR indicator has been in use for the last 7 years so the value of the data...
APPENDIX: ADDITIONAL TEST DETAILS FROM RELATIVE STRENGTH AND PORTFOLIO MANAGEMENTby John Lewis, CMT
New Educational Content This Month
November 22, 2023
Utilizing Trend & Mean Reversion in Breadth Studies to Gauge Market Conditions
Presenter(s): Victor Riesco
November 18, 2023
Beating the Bench
Presenter(s): Scott Brown, CMT
October 25, 2023
Equity Risk & Potential – Q4, ’24 & Beyond
Presenter(s): Timothy Hayes, CMT