Intermarket relationships between metals can not only give cues about the economic cycle but also lead the start of a global equity bear market. Gold did not take much time to move from 800 dollars in Dec 2007 to move up to 1000 dollars. Now it is holding steady at 930. While Gold (Fig 1) and Silver (Fig 2) might be hanging tight, metals as a group are scattered on the price performance scale. Figure 1 Figure 2 For example few would like to talk about Zinc, which has crashed 50% since Nov 2006. It was then a few emerging stocks from India like Hindustan Zinc (Fig 3) started topping despite a positive Sensex (Indian Benchmark). The love has turned into hate. And all the merger talks between Zinifex and Umicore could not prevent Zinifex from crashing 61% from recent highs. Euphoria about mergers, despite a 33% success rate (since 1985) is unsustainable. Figure

A version of the Arms Index computed using averages of the components to correct for a mathematical problem encountered in averaging raw Arms Index values. This is thought in some quarters to be a superior market-timing tool. Reprinted from markettechnician.com and used with permission.

Dick Arms has rewritten Edwards and Magee chart patterns and the basic principles of market analysis to include volume in this short book. It is a truly groundbreaking work which builds upon the previous writings of this pioneer of technical analysis. Arms makes the argument that price describes what the market is doing, while volume explains why the market is doing what it is doing. It is his opinion that visualizing volume allows the trader to see the conviction behind the price action – when prices are going up on heavy volume, demand is overwhelming supply; similarly supply swamps demand as seen in the volume associated with a selling climax. The idea of visually representing volume led Arms to create the Equivolume charting technique. Details on this method were first presented in his 1999 book, Profits In Volume: Equivolume Charting. For those wanting an introduction to this charting method, an ebook called

It’s hard to believe that MTA members have been involved on college campuses for the past 30 years. For perhaps 15-20 years we have been guest lecturers filling in at courses on investing with a one to three hour presentations on technical analysis. More recently we have a number of for-credit courses on the undergraduate and graduate levels in colleges in several states around the country. Also interest is quietly growing overseas in select executive MBA programs. As professors “discover” our tools and test them to their own standards and publish their results, we have gained credibility. Many schools have built “trading rooms” or “interactive labs” to prepare their students for the world of finance and global trading and investing. These rooms with their banks of Reuters and Bloomberg terminals have increased our audience. Students who have grown up in the past 20-25 years have been exposed to one of the

The Columbus, Ohio Chapter of the MTA has been established for professional traders, technical analysts and other investment professionals who currently use or are interested in technical analysis. We also intend to reach out to those involved in quantitative analysis and behavioral finance, including faculty members at the local universities. Our main objective will be to provide networking and professional development opportunities for our members while increasing the visibility of technical analysis and those who use it in the Central Ohio area. Until about 2 years ago, there wasn’t a single CMT in Columbus. Now there are five, and three of these people work for state pension funds (Jason Tincher, Timothy Swingle and Timothy Steitz, all of whom have expressed an interest in the Chapter). Therefore, we finally have some people who are visible in the investment community and who can serve as building blocks for establishing the credibility of technical