September 1996
Letters to the Editor
Editor,
SOMETIMES SIMPLE IS BETTER
First, I want to send you all my best compliments for the magazine and for all the articles you feature, which I read every month with great interest and attention, especially the articles about trading psychology, which in my opinion is a matter of the same importance as any trading technique.I am a private, part-time trader. In your 1996 Bonus Issue, I read the article by Nelson Freeburg, "Evolution of a timing model." The section concerning the 4% swing system I found of great interest because of the simplicity of the technique. In many articles you feature, your contributors explain that it's not necessary for a trading technique to be complicated to give good results, but rather, on the contrary, it's the simple techniques that seem to be the secret for the most profitable trades.
Please advise me in which issues of S&C or other publications I can read about simple, mechanical systems to trade.
Thank you and go forth with your great magazine!
CIABATTI ALESSIO
Florence, ItalyWe have published many, many articles that present simple techniques or mechanical trading systems. Keep reading S&C each month for new techniques. Past STOCKS & COMMODITIES articles are available in book form by year or on CD-ROM, which has the advantage of a sophisticated search feature for locating specific topics. -- Editor
NOW WE'RE FLYING
Editor,
I have enjoyed reading your magazine for the past few years. The knowledge I have gained is priceless. The article in the May 1995 STOCKS & COMMODITIES by Dennis Meyers titled "Making the Titanic fly" has been a very useful tool toward managing my 401k account. The investment choices I have in my 401k plan are the S&P 500, the bond index and Treasury bills. The "flying Titanic" has worked wonderfully for timing the S&P 500. My employer is considering adding the Russell 2000 index as an investment option. Can you refer me to a model that focuses on the NASDAQ?Thank you for your time.
CAROL STAVECSorry, we haven't published any articles that focus solely on the NASDAQ.-- Editor
North Royalton, OH
CHARTING BY HAND
Editor,
I am new to the subject of technical analysis. My key interest is equities. I would like to do some initial graphing myself and have read books by John Magee, Martin Pring and other technicians. I am presently using regular graph paper because I have been unable to find either semilog paper or Magee's Tekniplat paper. I would like to ask several questions.1. Where can I find Tekniplat graph paper or something similar to do manual daily charting of equities? Does the book published by your company Charting the Stock Market: The Wyckoff Method include this paper?2. Where can I find historical information on a single-stock basis that is reasonable in cost (say $1 to $5 for 12 or more months for high, low, close and volume data per stock)? Can you provide me with an overview of what is available and which combination of equipment is required to receive the data on my computer (which is a Macintosh 6220 with a CD drive)? I have written for some information, am a member of the American Association of Individual Investors (AAII) and the computer subgroup and have those resources. If one of your previous articles covers this, I would like a copy or would be willing to buy the back volume book.
Many thanks.
ALAN ANDERSEN
Incline Village, NVWe don't know which distributor sells Tekniplat paper. (Readers?) Regarding data vendors, we publish product reviews in each issue, including some data packages (see our review of InterQuote in this issue) and products that contain historical or real-time data packages. You could also check the Advertising Index at the back of each issue under the Data Services category for a list of data services advertising in that issue, and follow up by calling the toll-free numbers in the ads for product information. Finally, you could check our Readers' Choice Awards for data services winning awards in the data category (see our response to the next letter for more information).-- Editor
SHOPPING FOR TECHNICAL ANALYSIS SOFTWARE
Editor,
Recently I discovered your home page and subsequently requested a copy of your magazine. The next day I happened to find the June 1996 issue at a local magazine store. I have to say that my first impressions were very good and I can say that I will eventually order a subscription to your magazine once I get myself some software. I am just a beginning technician but found numerous articles in the June issue that were very easy to understand. I could follow the logic even with my limited knowledge.Concerning technical analysis software: I noticed a reference in your magazine to a feature you published called the Readers' Choice Awards for software. I was wondering how I could obtain a copy of the 1996 award listings, or if they aren't out yet, the 1995 awards. I am shopping for technical analysis software and a data service providing both end-of-day and historical data.
Any help you could give me would be greatly appreciated.
ED MIDDLETON
Nepean, Ontario, CanadaThe Readers' Choice Awards appear each year in our Bonus Issue, which comes out in January and is free to our paid subscribers. The awards section lists the results of our annual reader survey on investment-related products and services. In this section, we compile and present our readers' votes for the best products and services across 20 different categories, including data services, trading software, artificial intelligence software, options analysis software and more.
The Bonus Issue also contains a Software Comparison Table, which summarizes the features of various technical analysis software. After surveying the industry, we tabulate the individual responses into a grid by product name. Information in the six-page table includes product price, whether data is provided, how many built-in indicators the product offers, whether alerts and screening are included, how many methods of technical support are available, and more.
The STOCKS & COMMODITIES Bonus Issue is automatically mailed to all current, paid subscribers. New subscribers throughout the year also receive a copy of the Bonus Issue upon subscribing. Call our circulation department at 800 832-4642 or 206 938-0570 for more information.-- Editor
USING COPYRIGHTED ARTICLES
Editor,
I'm writing from Indonesia. My company subscribes to your magazine and I've discovered that you have lots of interesting articles regarding technical analysis. My company is a vendor of data from the Jakarta Stock Exchange in Indonesia. We place the data on our BBS so it can be downloaded by our customers.It would be great if I could place some of your articles on our BBS. Can I do that? Is there any legal arrangement I need to work out with you? Of course, I will give the source of the articles.
Thank you for your attention. I really look forward to your reply.
ANGELO MICHEL
via E-mailReusing, reproducing or reprinting anything from the pages of STOCKS & COMMODITIES magazine is illegal and improper without prior written permission from the publisher. Everything in the magazine is copyrighted, and copyrighted material cannot be used without the permission of the copyright owner. We are forwarding you an informational letter about the procedures for obtaining permission to reprint an article from STOCKS & COMMODITIES. Please contact our office if you have any questions.-- Editor
CANADIAN TECHNICAL ANALYSIS
Editor,
It's great to see your Web site. I buy your magazine at the newsstand at random and find it excellent.I have written a few articles myself, but they are more suitable for Canadian readers. Would you be interested in looking at them? If so, please let me know. I just finished writing a book called Handbook of Canadian DRIPs and SPPs. It's being published right now.
CEMIL OTAR
via E-mailWe have forwarded you a copy of our Author Guidelines, which describe the kind of articles we seek to publish. After reviewing the guidelines, you may call our office if you'd like to propose a possible topic for an article.-- Editor
LONGER INTERVIEWS
Editor,
Thank you very much for the great interview with Richard Mogey ("Cycles within cycles: Richard Mogey," STOCKS & COMMODITIES, July 1996). Is there any way to expand the amount of copy space reserved for your excellent interview series? Gosh, it seems that the interview with Mogey ended much too abruptly.Keep up the quality work. It really shows!
MICHAEL SOHASKI
via E-mail
McCLELLAN OSCILLATOR
Editor,
I found your interview with Richard Mogey very interesting since I follow the McClellan oscillator very faithfully. However, I am puzzled by the example shown in the article. It appears that the seed is only calculated once (which is the nature of a seed, I presume). The value of the seed is more accurate if you have been running the calculations for a long time. I calculated the seed as of May 24 and got a value of about 2000, and on June 17 I got a value of about 1000. Since these values are the base to which future values of the oscillator are added, it appears that it's a fixed offset that depends dramatically on which day you start and is never changed. I must be missing something.CHARLES C. HANSONI, in turn, am a little puzzled by your question. You treat the McClellan oscillator as an index that's calibrated. However, the oscillator is not calibrated -- the summation index is. The recommended seed for the EMAs used in the oscillator is zero, a recommendation made by the McClellans themselves. Originally, when my interview with the McClellans appeared in the June 1994 issue of S&C, I provided a sidebar that seeded the EMAs with the first day's difference between the advances and declines. Afterward, the McClellans wrote in a letter that was published in the August 1994 Letters to S&C that zero should be used for the seed values of the EMAs and that the summation index should then be calibrated to 1000.
via E-mailIf you want to verify your work, I suggest subscribing to the McClellans's newsletter, called McClellans' Market Report (800 872-3737 or 818 243-7119).-- Editor
ERRATA: QUICK-SCAN
In the July 1996 Quick-Scan of Astro-Trend 1996 Forecast & Trading Manual, we inadvertently left out the credentials for the book's author, Norman Winski. Mr. Winski has 25 years of experience in studying and trading the markets based on planetary cycles. Of those 25 years, 12 were spent as a member floor trader on the Chicago Board Options Exchange and the Chicago Board of Trade. He won our Trader's Challenge, a monthly mystery chart contest, in the May 1991 STOCKS & COMMODITIES. Copies of Astro-Trend can be ordered from Norman Winski & Associates at 941 261-7261.
ERRATA: TRADERS' TIPS
On page 53 of the August Traders' Tips, an incorrect formula appeared in the code for MetaStock. In column C, the formula given for the inside day should have contained a greater-than sign. The formula should have read:
Col C: Inside HIGH<Ref(HIGH,-1) AND LOW> Ref(LOW,-1)All corrections are also posted on our Web site.-- Editor
