In this article, I explore investor psychology and investment themes within a framework borrowed from the branch of psychology known as cognitive-behavioral theory. Studies have found cognitive-behavioral therapy to be one of the most effective forms of therapy. Its concepts and tools are extremely powerful and I believe that they are just as applicable for investing. In the context of financial markets, cognition refers to the mental representation and attitude towards information, fundamental or otherwise. (The “mental representation of and attitude towards” information can be abbreviated to the “perception of” information.) Stated simply, cognition deals with how an investor interprets new information, namely, whether it is fundamentally positive or negative, and the investor’s attitude towards it, namely, whether the market has overvalued, undervalued, or fully valued its significance. Over/under/fully valued is equivalent to being over/under/fully discounted. These perceptions translate to three possible behaviors, choosing to buy, sell, or hold. A change

Recently, Level 3 exams were graded in a standard hotel conference room near New York City. We’ve all spent too many hours in those rooms and know all the mind numbing details – plain walls with a dry erase board mounted at the front of the room; inexpensive light fixtures that they call chandeliers; tables with chips on the edges from being stored roughly over the years; chairs that don’t look very comfortable, and actually aren’t very comfortable. The only thing notable about the room was the seriousness of the graders. As the candidate’s answer sheets were handed out early in the morning, the joking among old friends and new volunteers came to a halt. For hours, about two dozen CMTs would be silently reading, the only sound being the turning of pages and the occasional discussion in an effort to ensure fairness to the candidate. Fairness dominated the process. No identifying

John Murphy, CMT made a presentation to the New York chapter on June 14, 2004. It is available on the interactive On Demand Video Archives. Murphy’s 1990 book, Intermarket Analysis, was one of the most important books in the field of technical analysis. The book was updated and a second edition was published in 2004. In this presentation, he updates his original work, in a unique way for a technician. He didn’t use any charts, choosing to focus on the concepts of intermarket analysis which at that time he felt could have an impact on the future of technical analysis. Since the original publication of the book, he noted that markets had changed. Deflation concerns dominated the markets in 1997-1998. The link between bonds and stocks is a cornerstone of intermarket analysis, and their positive correlation had been prominently discussed in the original edition. Deflation threats have continued to impact stocks over

Spring 2011 CMT Exam Administration – Sign Up Now Registration for the Spring 2011 CMT Administration is open for all three levels! Sign up today to ensure your preferred time, date, and location. Contact Marie Penza, 646-652-3300, for information on the CMT Program or if you are having trouble scheduling your exam with our outside test center administrator, Prometric. For detailed instructions on how you can register online, please click here. 2011 Annual Symposium – Space is Limited, Register Today The 2011 Annual Symposium will truly be the most memorable in MTA Symposium history. In addition to some of the world’s most recognized presenters, this two day event also includes two networking cocktail receptions: one on the floor of the New York Stock Exchange and the other at the Museum of American Finance.  The tentative agenda for the 2011 Annual Symposium is now available online! The first day of the Symposium includes presentations by Ken Winans,