From the Editor’s Desk “November Issue of Technically Speaking”
I believe these past several years have been the most dynamic and important ones in the history of the MTA. During this time, the MTA grew up. We went from an obscure social club primarily for New-York-based technicians, to a professional regulatory organization (PRO) with an industryaccepted professional certification program, computerized testing and a new state-of-the art computer platform to service its Membership. But, with growth and success often comes change – you just can’t get around it.
One of these changes has been our relationship with IFTA, the International Federation of Technical Analysts that our own Ralph Acampora founded many years ago. On the cover, MTA President Jordan Kotick explains our current relationship with IFTA and how we arrived there, and also shares some of the dialogue that he has had with IFTA President Bill Sharp to try to resolve our current conflict. Being on the MTA Board myself, I realize we have already sent out a very detailed account of this issue. But, because we feel it is so important for us to make every effort to accurately inform the Membership on the details of this issue, we would rather provide a little too much information than not enough.
Inside, Contributing Editor Mike Carr, covers the July 16th meeting of the Denver Chapter, which featured a presentation by Andy Ratkai on Insider Trading. Also inside, Contributing Editors Jeannette Young and Garry Rissman provide detailed coverage of the October meeting of the New York City Chapter, which featured a presentation by Christopher Cady on Market Profile. Market profile is a relatively obscure charting technique that is very popular with floor traders. This issue also features a “how-to” article by professional trader Austin Passemonte, who uses mathematically-derived pivot point numbers to determine market trend and trading opportunities.
Finally, just a quick reminder to make your reservations for the MTA’s 2006 Winter Retreat to be held on January 20th and 21st at the Four Points Sheraton in Miami Beach.. Each session will explore technical analysis from a different perspective, including trading, research and portfolio management. It looks to be a great event, not to mention just being in Miami in January is a great event in itself.
Hope you enjoy this issue.
John Kosar, CMT
Editor
What's Inside...
From the President’s Desk “Surprising Feedback”
by Jordan Kotick, CMTBased on our recent letters, based on my note in this newsletter, the IFTA issues are well defined. It is interesting though…. after the letters were sent from the Board to the MTA membership,...
From the Executive Director’s Desk “NEW CMT testing”
by John R. KirbyThe weekend before October 31, 2005 was another big one for your MTA. It was the first day of our first world-wide computerized testing for the CMT. Approximately 600 members and affiliates took the...
Where We Stand
by Jordan Kotick, CMTFellow Members and the International Technical Community, By now, everyone should be aware that we are no longer part of IFTA, an organization that was launched to serve as a framework for the global...
Profits and Pitfalls of Insider Trading Analysis
by Michael Carr, CMT & Andre Ratkai, CFAOn July 16th, Andy Ratkai provided the audience at the Denver MTA Chapter meeting with specific guidelines they could use to benefit from the activities of corporate insiders. Like any good...
MTA NY Monthly Meeting
by Garry RissmanEditor’s Note: Contributing Editors Jeanette Young and Garry Rissman covered the October 3rd meeting of the New York City Chapter of the MTA. for Technically Speaking. The featured presentation ,...
How To Use Pivot Points
by Austin PassamontePivot points, floor levels, support/resistance values. Various labels for the same tools: a calculated formula for what should be “fair value” in a market to follow. Before the days of palm...
Based on our recent letters, based on my note in this newsletter, the IFTA issues are well defined. It is interesting though…. after the letters were sent from the Board to the MTA membership, I immediately received a flurry of emails with feedback and opinions. What surprised me was that there was not a single negative or critical email. Aside from some those that remained neutral, every single other email was very positive about our behaviour and approach with IFTA, the steps we have taken and what the MTA’s role is as a leader in the global technical community both now and going forward. This is very heartening to see and hear and I thank you for the very positive comments. As always, another month seems to bring another piece of good news about the MTA. In fact, I think the last month has been one of the most important 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)

Jordan Kotick, CMT
Bio Coming
The weekend before October 31, 2005 was another big one for your MTA. It was the first day of our first world-wide computerized testing for the CMT. Approximately 600 members and affiliates took the exams at 347 sites around the world. Although Thomson cautioned us that we should expect a decrease in the number of test takers the first time around, and although we did experience some capacity limitations in a few sites, we did not experience any hesitation on the part of test takers. The demand for the CMT is strong and growing. Marie Penza and I were in the Woodbridge office on Saturday October 29, 2005 to field questions and respond to problems during the kickoff. I am pleased to report that overall the experience for candidates was extremely positive. They found the test sites professionally run and the proctors courteous and helpful. Frankly, the opinion was that these sites
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)

John R. Kirby
Bio
Fellow Members and the International Technical Community, By now, everyone should be aware that we are no longer part of IFTA, an organization that was launched to serve as a framework for the global technical analysis community. People on both sides of the ongoing controversies between the two organizations have various opinions but I thought it was incumbent upon me to let everyone know what steps have been taken and where we currently stand. There are now two technical organizations with members around the world. There are now two technical certification programs with test-takers around the world. I do not think this is a good thing for our profession which, while having made great strides over the last few years, is still not where it needs to be when compared to the fundamental community. We are fractured, we are competing with each other. In this situation, we will all lose. The MTA has
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)

Jordan Kotick, CMT
Bio Coming
On July 16th, Andy Ratkai provided the audience at the Denver MTA Chapter meeting with specific guidelines they could use to benefit from the activities of corporate insiders. Like any good instructor, Andy began with simple definitions to establish a common knowledge base for meeting participants: Operating officers are insiders with day-today knowledge of sales and product trends. Their actions usually offer the most reliable indication of insider activity. Directors represent “Big Picture” insiders with varying degrees of knowledge. It is best to confirm their activities with an analysis of the actions of operating officers. Large shareholders are those that control at least 10% of a company’s stock. These insiders are often savvy individuals with insight into the company and proven track records of successful investment. Hedge funds may file as insiders because of their size and trading style. However, since they are mostly driven by short-term performance, their activity is not nearly as reliable
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...

Andre Ratkai, CFA
Andre Ratkai, CFA is President and Chief Investment Officer of Praxis Advisory Group, Inc., an independent investment advisor providing portfolio management and asset allocation services for stock, bond, and mutual fund investors. Mr. Ratkai provides the investment management...
Editor’s Note: Contributing Editors Jeanette Young and Garry Rissman covered the October 3rd meeting of the New York City Chapter of the MTA. for Technically Speaking. The featured presentation , by Christopher Cady, was entitled Voyage through Market Profile and the Associated Studies of Cap Flow. Jeanette, Regional Chairperson for the NYC Chapter, begins with an overview of the presentation. Garry then follows up with a recounting of the presentation, including his comments and a post-presentation interview with Christopher Cady. The included charts are a little difficult to read, because they are a scan of the actual hard-copy charts Mr. Cady used in the presentation, along with his hand-written annotations. Overview by Jeanette Young, CMT, CFP October 12, 2005 Last week the New York chapter of the Market Technicians Association had a wonderful meeting at the New York Board of Trade. The subject of the meeting was Market Profile. We were lucky to
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)

Garry Rissman
Bio
Pivot points, floor levels, support/resistance values. Various labels for the same tools: a calculated formula for what should be “fair value” in a market to follow. Before the days of palm pilots, cell phones and the general wireless world, floor traders and market makers relied on hand-scribbled price points of where buyers / sellers should cluster their stops. The information age has arrived, but these valuable price points still retain their power over market action hence. Pivot Point General Guidelines Of utmost importance to know, daily pivot point values tend to be touched or traded thru roughly 75% of the time. In other words, seven out of every ten sessions for any liquid market will see the daily pivot point come into play at some point during live trading. I know this to be true, because fellow traders and I have done the math, counted daily touches of stock index E-mini markets
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)

Austin Passamonte
Austin Passamonte is a full-time professional trader who specializes in E-mini stock index futures, equity options and commodity markets. Mr. Passamonte’s trading approach uses proprietary chart patterns found on an intraday basis. Austin trades privately in the Finger Lakes...
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