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Technically Speaking, June 2010

Letter from the Editor

The MTA Symposium held in May was very successful in every way. Attendees had plenty of time to interact with each other and the sponsors, and each speaker presented practical information. In this month’s newsletter, we try to present some details on the event. We’ll have even more from the Symposium in the July issue. But it is impossible to capture all the information in Technically Speaking. I’m already making plans to attend next year’s event, and hope to meet even more of you in New York. As anyone who has ever studied for the first level of the CMT exam knows, technical analysis is built on the assumption that history repeats itself. Many successful technicians study the history of the markets and economics. They often understand how politics affected the economy, and the markets. To bring a long-term understanding of the markets into focus, we are reprinting an article on the history of currency. This was researched by Dr. Brian Taylor, who details the history of every currency at his web site (https://www.globalfinancialdata.com/index_tabs.php?action=ghocmainpage).

One theme at the Symposium was that success in our field requires good communications skills. Many have learned that clients like stories with their analysis. This is fairly common when presenting an analysis of equities. Using the resource provided by Dr. Taylor can help you highlight stories even when analyzing the foreign exchange markets. While current politics is interesting, the historical perspective adds a sense of comfort for many clients.

We’ve also included a product review for High Growth Stock Investor software. HGSI has been a long-time supporter of the MTA and offers a discount to our members. Our members and affiliates receive the first 60 days of the data service for free and a 17% discount off of the regular monthly subscription price thereafter. Sponsors and supporters of the MTA make events like the Symposium affordable. We’ll be featuring more product reviews in the coming months to help you become familiar with the diverse group of companies that offer benefits to our members.

Sincerely,
Mike Carr, CMT

What's Inside...

MTA May Symposium: Global Strategy & Tactics: Risk Management - Solutions for the Institutional Investor

by Kristin Hetzer, CMT, CIMA, CFP

The MTA annual symposium held last week in New York City was the best MTA event I have attended, and I believe I have attended every annual event for the past 10 years. The first day began with a...

Will Go and Stock Prices

by Larry Williams

This article appears on “I Really Trade” the web site of Larry Williams (http://ireallytrade.com/WillGo.html). Larry recently spoke at the MTA Symposium and detailed his VIX Fix and an indicator...

Using Volatility

The MTA Symposium included several panel discussions. Larry McMillan was a participant on the Master Trading Panel, talking about “Technical Analysis as a Risk Management Tool.” Larry is...

A History of Universal Currencies

by Dr. Bryan Taylor

This article was originally published by Global Financial Data and is reprinted with permission. In January 1999, members of the European Union introduced a single currency, the Euro. In 2002, the...

High Growth Stock Investor

by David Steckler

Industry Monitors, Inc is a business enterprise committed to delivering a comprehensive set of integrated end-to-end investment products and services. Customers are individual investors, financial...

MTA Announcements

Fall 2010 CMT Exam – Registration Now Open! The MTA is pleased to announce that registration for the Fall 2010 CMT Administration, is NOW OPEN! Sign up today to ensure your preferred time,...

MTA May Symposium: Global Strategy & Tactics: Risk Management - Solutions for the Institutional Investor

MTA May Symposium: Global Strategy & Tactics: Risk Management - Solutions for the Institutional Investor

The MTA annual symposium held last week in New York City was the best MTA event I have attended, and I believe I have attended every annual event for the past 10 years. The first day began with a Media Panel moderator by Barron’s writer, Mike Santoli. The Panel: Katie Stockton, CMT, Alan Shaw, CMT, and Ralph Acampora, CMT. Given the breadth of Panel experience, it was interesting to hear about the evolution of talking to the media as a Technical Analyst over the past several decades. Thursday’s keynote speaker, Mark Fisher presented his technical trading systems and indicators. The afternoon session began with an Institutional Money Panel: Dodge Dorland, CMT, Martin Pring, Frank Teixeira, CMT, moderated by Scott Richter CFA, CMT. A lively question and answer period followed this panel. The afternoon keynote speaker: Jeremy du Plessis, CMT, FSTA. His point and figure software is thought to be the best in

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)

Kristin Hetzer, CMT, CIMA, CFP

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Will Go and Stock Prices

Will Go and Stock Prices

This article appears on “I Really Trade” the web site of Larry Williams (http://ireallytrade.com/WillGo.html). Larry recently spoke at the MTA Symposium and detailed his VIX Fix and an indicator he developed that combines Price, Volume, and Open Interest. You can read more about these tools at his web site. In the case of the stock market I have developed two Will Go indicators; the first predicts the market 5 to 6 weeks in advance, I call that the short-term version. The longer-term version forecasts the market about 20 weeks in advance. The short-term version is pretty much as presented in my 1970 book, “The Secret of Selecting Stocks”, in that book I mentioned using a 10 week rate of change of the Barron’s Bond/Stock spread ratio and extending that five weeks into the future. That is the basic idea. I have not revealed the construction of the Long Term Will Go and it

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)

Larry Williams

Larry Williams

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Using Volatility

Using Volatility

The MTA Symposium included several panel discussions. Larry McMillan was a participant on the Master Trading Panel, talking about “Technical Analysis as a Risk Management Tool.” Larry is the author of two best selling books on Options, including Options As A Strategic Investment, which is widely recognized as essential resources for any serious option trader’s library. As president of McMillan Analysis Corporation, Larry writes the “Daily Volume Alerts”, and edits and publishes “The Option Strategist”, a derivative products newsletter covering equity, index, and futures options. Larry has been recognized as an expert in options for years. His talk focused on applying volatility as a risk management tool. VIX is a widely followed index to measure volatility in the markets. Larry explained what exactly VIX is and how it can be used in a trading strategy. Futures, options and ETFs are available on VIX, making it possible for every investor to trade volatility. In

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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A History of Universal Currencies

A History of Universal Currencies

This article was originally published by Global Financial Data and is reprinted with permission. In January 1999, members of the European Union introduced a single currency, the Euro. In 2002, the Euro will replace national currencies, and each country’s currency will cease to exist. It is our belief that within the next ten years the Euro will merge with the Dollar to create a single currency for the United States, Europe, and eventually for other countries. These articles explore the impact of this transition to a single international currency. This article provides a brief overview of the history of currencies, beginning with primitive monies and moving up to modern times. The article attempts to show two things. First, whenever feasible, countries and empires have introduced a single monetary standard within their political regions because the benefits of a single currency exceed the costs. Second, historically the existence of currency areas has been

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)

Dr. Bryan Taylor

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High Growth Stock Investor

High Growth Stock Investor

Industry Monitors, Inc is a business enterprise committed to delivering a comprehensive set of integrated end-to-end investment products and services. Customers are individual investors, financial planners, Registered Investment Advisors, and institutional portfolio money managers. Software, data, seminars, training, newsletters, plus a users’ forum are all offered under the brand name of HighGrowthStock (HGS). Their software is HighGrowthStock Investor, known as HGSI. HGSI is an end-of-day application for screening the universe of stocks to find those most likely to outperform the market. It utilizes a top-down approach to parse stocks into 154 industry groups, to rank these groups according to their relative performance over whatever time period is selected by the user, and to then drill down into these groups and rank the group’s stocks according to their relative performance. Groups can be any collection of securities or indexes that have meaning to the user, e.g. baskets, industries, market sectors, portfolios, indices, exchange

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)

David Steckler

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MTA Announcements

MTA Announcements

Fall 2010 CMT Exam – Registration Now Open! The MTA is pleased to announce that registration for the Fall 2010 CMT Administration, is NOW OPEN! Sign up today to ensure your preferred time, date, and location! Contact Marie Penza, 646-652-3300, for information on the CMT Program and/or if you are having trouble scheduling your exam with Prometric. For detailed instructions on how you can register online, please click here. MTA May Symposium – Pictures and Archived Presentations Available! The 2010 May Symposium was a great success with over 250 total attendees! The Market Technicians Association would like to extend their gratitude towards all those who attended, presented, and sponsored the event. Please click here to view the recorded presentations and a slideshow of pictures taken by the MTA Staff at this year’s event. Enjoy! MTA Annual Meeting Results – Board of Directors Announcement At the MTA Annual Meeting (May 22nd) our member’s proxy votes were

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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New Educational Content This Month

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