public

Technically Speaking, September 2007

From the Editor’s Desk

Traders enjoy instantaneous feedback - seconds after placing a trade they know whether or not it’s working. Traders also have the ability to review their performance at any time just by checking their equity curve. In most other professions, an annual employee performance review is the only feedback available. In large corporations, it is possible to spend 364 days in a delusional bliss, only to learn on appraisal day that they have failed miserably at supporting corporate objectives. As editor of your newsletter, I must admit it would be great to receive constant feedback on whether or now we are meeting your needs. But, we rarely hear from the more than 2,600 recipients of Technically Speaking, and we are wondering if we are doing well or enjoying an extended period of delusional bliss. This month, we thought we’d ask for feedback, and we hope to hear from everyone. Feedback of any kind is welcome: just send an email to editor@mta.org. For those thinking they have nothing to say, consider answering any, or all, of these questions:
  • In the

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.

What's Inside...

A Letter from the MTA Treasurer

by Julia E. Bussie, CMT

This month, instead of A Letter from the Executive Director, we have decided to provide you with an update on the MTA financials from our Treasurer, Julia E. Bussie, CMT. As Treasurer, I am pleased...

Walter Bressert Thoughts on Cycles and Trading

by Matthew Caruso, CMT

This month, we feature excerpts from a discussion with Walter Bressert, a name synonymous with cycle analysis in the markets. Matt Caruso, CMT, recently spoke to Walt about his 30+ years in the...

2008 Charles H. Dow Award Competition

by George A. Schade, Jr., CMT

The competition for the 2008 Charles H. Dow Award is open. The award for excellence and creativity in technical analysis has been presented since 1994, and today it is the most important writing...

Trading Alert: Elimination of the Shorting Up-Tick Rule/ A New Field

by Christopher Gurkovic, CMT

On July 6, 2007 the SEC fully eliminated the requirement for an up-tick needed for shorting. These rules were put into place in the 1930’s, first restricting shorting on a down tick in 1931, then...

Preferreds - Wall Street’s Best-Kept Income Secret by Kenneth G. Winans, CFA, CMT

by Michael Carr, CMT & Ken Winans, CMT

Technical analysis is generally applied to common stocks, market averages, debt instruments and futures markets. An overlooked investment, preferred stocks, is rediscovered in this book, and the...

The Options Doctor, Options Strategies for Every Kind of Market by Jeanette Schwarz Young

by Michael Carr, CMT & Jeanette Schwarz Young CMT, CFP, CFTe, MS

Jeanette Schwarz Young, CFP, CMT, has written an easy-to-read book that will appeal to novice and professional alike, a rare accomplishment in the field of investment and finance publishing. In the...

MTA Updates

Here are some updates on MTA happenings… Traders’ Library and the MTA have reached an agreement and have created a special website that offers all MTA Members and Affiliates our recommended...

A Letter from the MTA Treasurer

A Letter from the MTA Treasurer

This month, instead of A Letter from the Executive Director, we have decided to provide you with an update on the MTA financials from our Treasurer, Julia E. Bussie, CMT.

As Treasurer, I am pleased to report that the financial condition of the MTA is excellent. Membership continues to grow as does interest in the CMT program. Our annual budget is developed and monitored through the joint efforts of our Executive Director, Tom Silveri, our able and enthusiastic Bookkeeper, Elliott Capon and the input of the Finance Committee – Brad Herndon, Harold Parker, Tom McClellan and myself. The budget is then approved by the Board of Directors.

Fiscal year 2007 which ended June 30 finished with a surplus of $274,000, exceeding our budget forecasts. Annual expenses for 2007, at $1.2 million, were up slightly from 2006 due to costs associated with the move back to NYC and additional salary expenses. Major expenses

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)

Back to top
Walter Bressert Thoughts on Cycles and Trading

Walter Bressert Thoughts on Cycles and Trading

This month, we feature excerpts from a discussion with Walter Bressert, a name synonymous with cycle analysis in the markets. Matt Caruso, CMT, recently spoke to Walt about his 30+ years in the markets.

Basically I look at my job as a trader and analyst using cycles to anticipate tops and bottoms in a market, and to generate high probability buy and sell signals in the direction of the cycle. It’s not that cycles affect markets, rather markets move according to the cycles. In other words – the cycles come first, they’re there and we use oscillators to click into that energy of the cycles. I don’t make the cycles; I have a program that finds them and identifies the cycle lengths in any market I choose to look at. So, my job is to try and figure out how accurate specific cycles actually are, and then how to integrate them

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)

Matthew Caruso, CMT

Back to top
2008 Charles H. Dow Award Competition

2008 Charles H. Dow Award Competition

The competition for the 2008 Charles H. Dow Award is open. The award for excellence and creativity in technical analysis has been presented since 1994, and today it is the most important writing competition in the field.

The last day to submit papers is February 1, 2008. The Board of Directors has approved a $2,000 cash prize. The standards for writing content and style have been raised.

The winning author will be invited to discuss the paper at a national MTA seminar or at a monthly meeting of an MTA regional chapter. The paper or a summary may be published in the MTA’s Journal of Technical Analysis, in Technically Speaking, and the MTA website. The author of the runner-up paper may receive a certificate.

The guidelines are posted on the MTA’s Web site under Activities. Address inquiries to DowAward@ mta.org.

Recipients of the Charles H. Dow Award have been:

  • 1994 Charles D. Kirkpatrick, II, CMT,

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)

George A. Schade, Jr., CMT

Back to top
Trading Alert: Elimination of the Shorting Up-Tick Rule/ A New Field

Trading Alert: Elimination of the Shorting Up-Tick Rule/ A New Field

On July 6, 2007 the SEC fully eliminated the requirement for an up-tick needed for shorting. These rules were put into place in the 1930’s, first restricting shorting on a down tick in 1931, then confining shorting to an up tick in 1938. Basically the last 70 years of data have new definitions, the playing field has been changed for Technicians. It should be taken as no surprise that in the next weeks to follow July 6, volatility picked up immediately. The VIX (Volatility) index closed at 14.72 on Friday July 6. By Friday August 3, four weeks later, the close was 25.16. This represents a 70% increase by the VIX. True the market was going down during this period, but I am sure the up-tick elimination has added to the steepness and severity of the decline. In my opinion, the impact on Technical Analysis, and especially Quantitative Analysis is

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)

Christopher Gurkovic, CMT

Back to top
Preferreds - Wall Street’s Best-Kept Income Secret by Kenneth G. Winans, CFA, CMT

Preferreds - Wall Street’s Best-Kept Income Secret by Kenneth G. Winans, CFA, CMT

Technical analysis is generally applied to common stocks, market averages, debt instruments and futures markets. An overlooked investment, preferred stocks, is rediscovered in this book, and the author demonstrates that technical analysis works in these issues. This book, which may be the first book dedicated to preferred stocks published since the 1930s, is a worthwhile read for investment managers and advisors looking for new ideas to generate returns in their income investing accounts.

Winans noticed that the number of listed bonds was declining at a time when conservative investors were facing a bear market and increasing downside stock market volatility. From 1988 through 2005, the number of NYSE-listed bonds declined by 88%, the number of retirees was increasing, and concerns about stock market returns worried many investors after the declines of 2000-2002. Offsetting these

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

Michael Carr, CMT

Ken Winans, CMT

Back to top
The Options Doctor, Options Strategies for Every Kind of Market by Jeanette Schwarz Young

The Options Doctor, Options Strategies for Every Kind of Market by Jeanette Schwarz Young

Jeanette Schwarz Young, CFP, CMT, has written an easy-to-read book that will appeal to novice and professional alike, a rare accomplishment in the field of investment and finance publishing. In the final chapters of The Options Doctor, she describes the actual techniques she uses to enhance her own trading profits after building a common level of knowledge among all readers in the earlier chapters. In my opinion, this is where many authors fail to hold their readers’ attention. But, her review of the basics includes tales of her trading pit experience along with her unique take on indicators and patterns that are well known to the professional audience.

In Part I, she provides an overview of technical analysis. This section by itself might serve as a good review for CMT candidates. Part II details options strategies, making the theory behind the Greeks completely

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

Michael Carr, CMT

Jeanette Schwarz Young CMT, CFP, CFTe, MS

Back to top
MTA Updates

MTA Updates

Here are some updates on MTA happenings…

  • Traders’ Library and the MTA have reached an agreement and have created a special website that offers all MTA Members and Affiliates our recommended reading list at the lowest possible rate! To visit this site please got to www.invest-store.com/mta.
  • Several new job openings have been posted in the MTA Job Bank. To view these new postings, please log into the website and click on Job Bank located on the Member Homepage. If you are interested in posting a job, please contact Tim Licitra at tim@mta.org.
  • CMT Institute (CMTi) is open for registration!! For more information on the CMTi, please visit the CMT Institute page. To register online, please go to the “Events” section of the “Shopping Cart” and follow the prompts. If you would like more information on the CMTi, please contact Tim Licitra at Tim@mta.org or 646-652-3300.
  • If you have recently had your work published 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.

Back to top

New Educational Content This Month

Back to top