TECHNICAL ANALYSIS AND CHART INTERPRETATIONS

12131Technical Analysis:Tools and TacticsJust as with fundamental analysis, there are tools that technical analystsuse to determine when to buy or sell a stock. All of the tools explainedin this chapter can be found on a stock chart (since technicians studys[r]

the way the market operates. The widespread notion that the stock marketneeded ‘‘fixing’’ after the 2000 break just was not as prevalent as before. It mayhave been a speculative bubble that burst, but the basic functioning of themarket was not questioned as it had been in previous episodes.What did o[r]

stock index. The fund, popularly known as the SPIDER, takes its name fromthe popular ETF Standard and Poor’s Depository Receipts (SPDR). Thisfund takes investors’ monies and invests a pro rata share of these funds in eachof the 500 stocks in the S&P index. The fund really does[r]

the commodity markets. And everyone has to watch the U.S. dollar. Then there's theJapanese stock market to consider. So who needs intermarket analysis? I guess justabout everyone; since all sectors are influenced in some way, it stands to reason thatanyone interested in any of the fina[r]

coexist with a rising bond and stock market for a period of time. However, a fallingdollar indicates that the clock has begun ticking on the bull markets in the other twosectors. Correspondingly, a bullish dollar is telling traders that it's only a matter oftime before bonds and stocks[r]

that from 1982 to 1999, stocks had a total return of 17.3 percent.2This returnwas accomplished by being in stocks everyday and reinvesting dividends backinto the market. However, for those investors who made the wrong decisionabout being in the market on only twenty-four days during this peri[r]

nership that was not universally welcomed.Against this backdrop of economic expansion and commercial largess, theProgressive movement gathered momentum. Taking some of their platformfrom the fading populist movement that had vaulted William Jennings Bryanto national prominence, the Progressiv[r]

7.2 Economic Growth before and after an ExchangeIs Opened 116TABLE7.1 Exchanges Ranked by Market Capitalizationin U.S. Dollars, End of 2004 102Series ForewordScanning the pages of the newspaper on any given day, you’ll find headlineslike these:‘‘OPEC Points to Supply Chains as Cause of Price H[r]

something of a quantum leap. They were faster, more capable, and their useto gather and process information reached new levels. As the IT revolutiontook off, the economy (and stock prices) went along for the ride.Not only did the economy grow and incomes rise, but inflatio[r]

casts to four trading days, which is more than enough lead time togain a tremendous trading advantage.Trying to predict crude oil or the S&P 500 Index a month, sixmonths or a year from now is impractical from a trading standpoint.This is due in part to the fact that market dynamics entail bo[r]

markets on a specific target market.Full Field of Vision Is CriticalYou can get a sense of the difference between single-market analy-sis and intermarket analysis if you put a hand over one of your eyesand try walking around the room. With only one eye open, your fieldof vision is limi[r]

accurate forecast of market direction, he would still have one finalchallenge to surmount. This involves market timing.You Can Playthe Markets, or You Can Timethe MarketsOnce a trader analyzes a specific market and forms an opinionabout the likely trend direction of that market, he must still[r]

NEURAL NETWORKS How to Raise Your Financial IQ toStay Ahead of the CompetitionThe human brain is composed of hundreds of billions of cellsknown as neurons, which through their connections to eachother relay information from one neuron to another. This pro-cess allows a person to learn relationships,[r]

gold. From the October peak, the S&P gold index lost about 46 percent of its value.The price of gold, however, after an initial selloff in late October, firmed again andactually challenged contract highs in December.While gold was threatening to move into new highs, gold stocks barely manage[r]

to expect the commodity/bond ratio to turn first. Used in this fashion, the CRB/bondratio can be used as a leading indicator for stocks. The CRB/bond ratio started to rallystrongly in the spring of 1987 while the CRB/stock ratio was still falling (Figure 12.7).The result was the October 1987 stock m[r]

exist all over the globe, and their price action is reported instantaneously on quotemachines and video screens to every other part of the globe. To put it mildly, muchhas changed in the financial markets in the past two decades and in the observer'sability to monitor them.INTER[r]

below the middle band.Sharp price changes can occur after the bands have tightened and volatility is low. In thisinstance, Bollinger Bands do not give any hint as to the future direction of prices. Direction mustbe determined using other indicators and aspects of technical an[r]

take advantage of time decay as well as market direction. In a vertical bullput spread, the premium received for selling the higher strike is greater thanthe premium paid for buying the lower strike. If the underlying instrumentis above the higher strike at expiration, both put options will expire w[r]

and kinetics analysis for microwave pyrolysis of Douglas fir sawdust pellet.Journal of Analytical and Applied Pyrolysis 94, 163–169.Rocha, J.D., Luengo, C.A., Snape, C.E., 1996. Hydrodeoxygenation of oils fromcellulose in single and two-stage hydropyrolysis. Renewable Ener[r]

A simple relative strength ratio could be constructed as ___________. •Increases in the relative strength ratio indicate the stock is outperforming the index or its particular industry and could indicate a buy or bullish signal.•If relative strength can be assumed to persist over time, then t[r]