LETTER FROM THE EDITOR
In this month’s issue we sadly note the passing of 2003 MTA Annual Award winner, Richard Russell. The story of his life was inseparable from his work and we present two examples of his work. There are many other examples available and young analysts would benefit from studying Richard’s approach to both work and life.
Young analysts would also benefit from studying the life of Ralph Acampora, CMT, who recently spoke to business students at the University of Denver. He began by talking about a bubble that developed in railroad stocks in the 1800’s. This bubble played out on the charts just like the internet bubble would almost 150 years later. As technical analysts know, history repeats. This time-tested idea is the subject of an article about the failure of a financial firm in 19th century Britain. Overend, Gurney & Co. is a company few traders remember but Dr. Bryan Taylor provides us with the details of one of the most dramatic events in the financial history of Victorian England. The collapse of Overend, Gurney and Co. had a more severe impact on the London financial market than the collapse of Bear Stearns had on U.S. markets over 140 years later. During the financial crisis of 1866, over 200 firms went bankrupt, including a number of banks. The similarities with 2008 are startling but few technical analysts will be surprised to see that history and human nature never seem to change.
This month’s issue also includes calls for papers from the sponsors of the Charles H. Dow Award and the Wagner Award. Research papers can be a valuable source of trading ideas as you can see in this issue’s Chart of the Month feature which shows the indicator highlighted in the 2015 Dow Award winning paper for several key markets around the world. In the next few months, we will be charting several other Dow Award-winning ideas.
RICHARD RUSSELL: THE PASSING OF AN ICON
Richard Lion Russell, 91, of La Jolla, California, passed away on November 21, 2015 from natural causes at his home, surrounded by his family. Russell was founder and publisher of Dow Theory...
THE HISTORY OF THE DOW THEORYby Richard Russell
Editor’s note: this was originally posted at DowTheoryLetters.com and is reprinted here with permission. The following piece is for serious market students. What I wrote below is information that...
RICH MAN, POOR MANby Richard Russell
Editor’s note: this was originally posted at DowTheoryLetters.com and is reprinted here with permission. MAKING MONEY: The most popular piece I’ve published in 40 years of writing these...
VOLATILITY AND TRADING: RISK AND REWARDby Kirk Northington, CMT
Editor’s note: This article was originally published at The Educated Analyst, an education blog maintained by Market Analyst. The first two articles in this series are available at The Educated...
CALL FOR NAAIM WAGNER AWARD PAPERS
Launched in 2009, the NAAIM Wagner Award is designed to expand awareness of active investment management techniques and the results of active strategies through the solicitation and publication of...
ABSOLUTE STRENGTH MOMENTUM INVESTING STRATEGYby Jack Vogel, Ph.D.
Editor’s note: this was originally published at Alpha Architect on October 13, 2015 and is republished here with permission. Here we highlight an interesting working paper titled “Absolute...
THE UNIVERSITY OF DENVER WELCOMES TECHNICAL ANALYSIS TO THEIR FALL FORUM
Technical analysts and the academic community have not always had a close relationship. This situation could be changing and it is likely students are pushing the change. Ralph Acampora, CMT,...
EXIT FROM WONDERLAND: CHANGE IS NOW ON THE HORIZONby Ed Easterling
Editor’s note: this was originally published at Crestmont Research on August 11, 2015 and is reposted here with permission. Many investors and advisors are unsure about the current financial market...
ORPHEUS INDICESby Mukul Pal
Winners don’t always win Indexing in capital markets has proven to be a popular method to gain broad market participation in a low cost vehicle that tends to outperform active managers net of fees...
OVEREND, GURNEY & CO.: AN INSPIRATION TO KARL MARX AND BEAR STEARNSby Dr. Bryan Taylor
Editor’s note: This article was originally published at the Global Financial Data blog and is reprinted here with permission. One of the most dramatic events in the financial history of Victorian...
CHART OF THE MONTH: FIXING THE VIX
The 2015 Charles H. Dow Award winning paper, Fixing the VIX: An Indicator to Beat Fear by Amber Hestla-Barnhart, demonstrates a market timing technique based on volatility. While the VIX, the CBOE...
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