Technically Speaking, September 2014

LETTER FROM THE EDITOR

This month we are including a number of charts. As technicians, it is a relatively simple matter to generate charts. The challenge is to create meaningful charts. We think the authors of the charts in this month’s newsletter accomplished that. Each of the charts presented in this issue can be studied to develop new insights into the markets.

Many members enjoy obtaining information on career opportunities. We try to include that information in the newsletter when we can and will be including more information in the next few months about the QGLDX Trading Strategy Contest. This contest has a rigid, quantified process that allows money managers to demonstrate their skill and to obtain a oneyear exclusive contract to trade at least $1 million in assets.

We also have a news release from a company that has created a platform designed to help financial services firms launch new technology applications. The cost and time dedicated to software development can be daunting to professionals focused on the financial markets. New innovations in technology are creating new opportunities for professionals to expand their product offerings.

If you are aware of similar opportunities, please let us know by sending an email to editor@mta.org.

Sincerely,
Michael Carr

What's Inside...

USE RSI TO SPOT THE END OF THE CURRENT BULL MARKET

Paul Ciana, CMT

Editor’s note: Additional charts illustrating the concept explained in this article are included as an Appendix to this month’s newsletter.

...

REFLECTING ON THE 2014 DOW AWARD

Charlie Bilello, CMT

Michael Gayed, CFA

Though only a few months have passed, it feels a like a lifetime ago when the Market Technicians Association honored...

POPULAR INDICATORS ON THOMSON REUTERS EIKON

Cornelius Luca

Editor’s note: This was originally published by Thompson Reuters and is reprinted here with permission. Knowing which indicators are widely...

THE BULL MARKET WANTS TO GO HIGHER. BUT HOW MUCH FUEL IS LEFT FOR A POST-LABOUR DAY ADVANCE?

Ron Meisels

One month ago the markets looked weak and the bulls duly retreated in what we forecasted to be “an overdue...

INTERVIEW WITH CHRISTOPHER DIODATO, CMT

Christopher Diodato, CMT, CFA | 2019 Charles H. Dow Award Winner

Amber Hestla-Barnhart

How would you describe your job?

Currently, I am a fee-only, ETF-only, financial advisor with Morgan Stanley Wealth Management. I...

BLOOMBERG BRIEF DEMONSTRATES HOW TO PROGRAM RELATIVE HIGHS AND LOWS IN ANY SOFTWARE

Eoghan Leahy, CMT, CFTe, CAIA

In the August 21 issue of Bloomberg Brief Technical Strategies, a simple technique for programming relative highs and lows was...

SEVEN REASONS AN ANALYST’S CALL TRACKER AND A TRADER’S LEDGER NEVER MATCH

Apurva Sheth, CMT

Over the past 4 years I have been analyst providing trading ideas to institutional and retail clients. Over that time,...

MTA CHAPTER REPORT: HONG KONG

Jackson Zhu, CFA, CMT, ACCA, FRM

Assuming the leadership role 2012, I quickly realized that we were working with a relatively small member base in Hong...

ETNA TRADER INTRODUCES DISRUPTIVE FINTECH TECHNOLOGY

Roman Zrazhevskiy

ETNA, a trading platform provider traditionally catering to broker-dealers, announced today that it is partnering with FinTech startups as well...

CHART OF THE MONTH FROM THOMSON REUTERS EIKON

The following Ichimoku Cloud charts of major market indexes are provided by Thomson Reuters Eikon.

Dow Jones Industrial...

APPENDIX: CHARTS OF RSI STREAKS IN BULL MARKETS

The weekly charts below of the Dow Jones Industrial have all been provided by Bloomberg LP.

November 2012...

USE RSI TO SPOT THE END OF THE CURRENT BULL MARKET

Editor’s note: Additional charts illustrating the concept explained in this article are included as an Appendix to this month’s newsletter.

The Relative Strength Index, or RSI, is among the most popular indicators selected on Bloomberg and is commonly used as an oscillator to time overbought and oversold markets. It can also be used as an indicator of future market weakness. You may be thinking...

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)

Paul Ciana, CMT

Paul Ciana is a Managing Director and Chief Technical Strategist at Bank of America, based in New York. He publishes his short- and long-term technical views on Rates, FX, Commodities and emerging markets in the coveted and most read Technical Advantage report...

REFLECTING ON THE 2014 DOW AWARD

Though only a few months have passed, it feels a like a lifetime ago when the Market Technicians Association honored us with the 2014 Charles H. Dow Award for our paper titled “An Intermarket Approach to Beta Rotation.” One of our goals in writing the paper was to further bridge the gap between technical analysis and institutional money management. Without question the MTA and...

To view this content you must be an active member of the CMT Association.

Contributor(s)

Charlie Bilello, CMT

Charlie Bilello, who holds the Chartered Market Technician (CMT) designation, is the Director of Research at Pension Partners, LLC, where he is responsible for strategy development, investment research and communicating the firm’s investment themes and portfolio positioning to clients. Prior to joining...

Michael Gayed, CFA

Michael A. Gayed is Portfolio Manager at Toroso Investments, an investment management company specializing in ETF focused research, investment strategies and services designed for financial advisors, RIAs, family offices and investment managers. Prior to Toroso Investments, Michael was the Co-Portfolio Manager and...

POPULAR INDICATORS ON THOMSON REUTERS EIKON

Editor’s note: This was originally published by Thompson Reuters and is reprinted here with permission. Knowing which indicators are widely used can help traders understand why prices react in certain ways.

Technically inclined traders gauge markets with either trend tools or various analyses. They are looking for insight on the strength or weakness of the ongoing trend and on possible beginning of a new...

To view this content you must be an active member of the CMT Association.

Contributor(s)

Cornelius Luca

Corelius Luca authored “Trading in the Global Currencies Markets,” published by Prentice Hall (3rd edition – 2007), a comprehensive analysis of the foreign exchange markets, instruments, players and methods of forecasting, and “Technical Analysis Applications in the Global Currencies Markets,” also published...

THE BULL MARKET WANTS TO GO HIGHER. BUT HOW MUCH FUEL IS LEFT FOR A POST-LABOUR DAY ADVANCE?

One month ago the markets looked weak and the bulls duly retreated in what we forecasted to be “an overdue and probably modest correction” in the first week of August. We said in our last Market Comment that the 1,900 area for the S&P 500 would prove to be a battleground for the bulls and bears and that proved to be the case. The...

To view this content you must be an active member of the CMT Association.

Contributor(s)

Ron Meisels

Ron Meisels is Founder and President of Phases & Cycles Inc. with over 50 years of stock market experience. He specializes in the independent research of Canadian and U.S. securities and market using Behavior Analysis. Institutions ranked him among the top three analysts...

INTERVIEW WITH CHRISTOPHER DIODATO, CMT

How would you describe your job?

Currently, I am a fee-only, ETF-only, financial advisor with Morgan Stanley Wealth Management. I try to simplify the investment management process using my ETF-only models and give my clients active portfolio management at a lower cost than one would find from many other advisors.

What led you to look at the particular markets you specialize in?

My concentration...

To view this content you must be an active member of the CMT Association.

Contributor(s)

Christopher Diodato, CMT, CFA | 2019 Charles H. Dow Award Winner

Chris Diodato became a student of technical analysis at a young age, enrolling in the CMT program during his freshman year of college. Since then, he attained his CMT and CFA charters and worked in various research and portfolio management roles. Currently,...

Amber Hestla-Barnhart

Bio coming soon.

BLOOMBERG BRIEF DEMONSTRATES HOW TO PROGRAM RELATIVE HIGHS AND LOWS IN ANY SOFTWARE

In the August 21 issue of Bloomberg Brief Technical Strategies, a simple technique for programming relative highs and lows was explained. Relative highs and lows can help individual traders identify stocks or ETFs with unusual strength or price action that is diverging from the broader trend. This is a form of relative strength analysis and in effect provides a way to highlight relative strength...

To view this content you must be an active member of the CMT Association.

Contributor(s)

Eoghan Leahy, CMT, CFTe, CAIA

Eoghan Leahy is a CEO, author, and speaker with over 18 years of experience in quantitative technical analysis, algorithmic trading, and cryptocurrency investment. He leads Quant Market Intelligence Ltd., a fintech company that develops and licenses innovative trading algorithms and research for...

SEVEN REASONS AN ANALYST’S CALL TRACKER AND A TRADER’S LEDGER NEVER MATCH

Over the past 4 years I have been analyst providing trading ideas to institutional and retail clients. Over that time, I’ve come to realize my call sheet and their ledger would not always agree. Rather than debating my performance, let’s hit the nail on the head and tackle the main problem:

Why does a trader who trades based on the calls of...

To view this content you must be an active member of the CMT Association.

Contributor(s)

Apurva Sheth, CMT

Apurva Sheth, CMT, has been working with the Institution Research Desk of JHP Securities Pvt. Ltd (India) for the last four years as a Technical Analyst. He can be reached at apurvabms4035@gmail.com.

MTA CHAPTER REPORT: HONG KONG

Assuming the leadership role 2012, I quickly realized that we were working with a relatively small member base in Hong Kong. From the very beginning I have been focusing on two main initiatives

grow the community
provide deep connections

Looking back at our activities these past two years, I can see several things that influenced our current success. We organized a series...

To view this content you must be an active member of the CMT Association.

Contributor(s)

Jackson Zhu, CFA, CMT, ACCA, FRM

Mr. Zaiqing ‘Jackson’ Zhu, CFA, CMT, ACCA, FRM is a Desktop Developer at Bloomberg in Hong Kong. A self-taught programmer, Jackson builds and delivers VBA solutions to the Bloomberg community for research and trading purposes. Jackson was formerly a Bloomberg Technical Analysis...

ETNA TRADER INTRODUCES DISRUPTIVE FINTECH TECHNOLOGY

ETNA, a trading platform provider traditionally catering to broker-dealers, announced today that it is partnering with FinTech startups as well as established financial services firms looking to launch new software. Having noticed an up-tick in development costs over recent years as consumer expectations grow, ETNA’s goal is to lower the buy-in for new and established FinTech firms looking to create new technologies. Their platform...

To view this content you must be an active member of the CMT Association.

Contributor(s)

Roman Zrazhevskiy

CHART OF THE MONTH FROM THOMSON REUTERS EIKON

The following Ichimoku Cloud charts of major market indexes are provided by Thomson Reuters Eikon.

Dow Jones Industrial Average DailyDow Jones Industrial Average Weekly

To view this content you must be an active member of the CMT Association.

LOGIN UPGRADE YOUR MEMBERSHIP

Contributor(s)

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APPENDIX: CHARTS OF RSI STREAKS IN BULL MARKETS

The weekly charts below of the Dow Jones Industrial have all been provided by Bloomberg LP.

November 2012 to PresentApril 1997 to August 1998
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.

LOGIN UPGRADE YOUR MEMBERSHIP

Contributor(s)

BACK TO TOP