May 2001 Letters To The Editor

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CLARIFICATION, NOT CRITICISM

Editor,

I was shocked to learn that an S&C reader interpreted my letter to the editor in the February 2001 STOCKS & COMMODITIES ("Phasor Displays") as a criticism of John Ehlers. I have so many faults that I have a personal rule never to criticize any person.

My letter was an appeal for help, not a criticism. Ehlers's articles show brilliance, but I'm frustrated because they go over my head. (Perhaps, as my wife reminds me, an idea goes in one of my ears and out the other -- with nothing to stop it.)

If I say that I don't understand Einstein's writings (and I don't), this is certainly not a criticism of Einstein!

Arthur Merrill
Haverford, PA

We'll admit that John Ehlers's articles, such as "Phasor Displays" in the December 2000 S&C and "Nonlinear Ehlers Filters" in the April 2001 S&C are innovative yet challenging. We appreciate the feedback we receive from you, Art, and our other readers.

Note to readers: More than 50 articles by Arthur Merrill have been published over the years in Technical Analysis of STOCKS & COMMODITIES magazine. Merrill -- modest though he is -- has expertise in statistically quantifying technical analysis concepts; is the author of several books, including Behavior Of Prices On Wall Street and Filtered Waves, Basic Theory; and is former editor of the Technical Trends newsletter. -- Editor
 


INDEX COMPONENT STOCKS

Editor,

I was wondering if you know where I could get a complete listing of the stocks in the Standard & Poor's Small-Cap 600 and the S&P Mid-Cap 400? I found information on the S&P 500 easily enough, but not the other two.

Love the mag. Keep 'em coming.

Jeff Painchaud
Saco, ME

You can find this information on the Standard & Poor's website -- https://www.spglobal.com. -- Editor


PAPER TRADING

Editor,

I have been receiving Technical Analysis of STOCKS & COMMODITIES  the Traders' Magazine, and I just recently received a sample issue of Working Money, The Investors' Magazine. S&C is a wonderful publication and I must say that, as a novice trader, I am learning so much. I look forward to the next issue. I think I will subscribe to Working Money as well, because I was pleasantly surprised at the content and the presentation of the topics. They are both great learning tools for me.

My question to you is, What website can I access to paper-trade stocks? I have come across sites that facilitate paper-trading of commodities and futures, but I must admit I am not at that point yet. One thing at a time. If you can recommend such a website, preferably one charging little or no fees, it would be greatly appreciated.

Lisa G. Carter, via e-mail


Try:
https://daytrading.about.com/money/daytrading/cs/simulatedtrading/index.htm

For futures and options paper-trading, try:
https://www.gpfo.com/
or
https://www.onlinefuturesbroker.com/

For stocks, try:
https://www.thegreatgame.com/
or
https://estreettrading.com/paper_traders/Paper_Traders.htm

In addition, most direct-access brokers offer limited, free trial versions of their software that you can use to paper-trade. For a list of direct-access brokers, visit the Traders' Resource feature at our website, www.Traders.com.

Perhaps one of our readers can also send in a suggestion. -- Editor


SUPPORT-RESISTANCE INDICATOR

Editor,

Please help! TradeStation 2000i includes an indicator called support-resistance. I am intrigued by this indicator and would like to know more about how to use it. It apparently comes from one of your articles. (Omega Research wasn't able to help.)

I would be happy to buy any articles or information you have concerning this indicator. Thanks for your help.

Steve Novotny, via e-mail

For more information about support and resistance analysis, see Mel Widner's article "Automated Support And Resistance" in the May 1998 S&C and the accompanying Traders' Tips. Article reprints can be purchased from our Online Store at our website, www.Traders.com. -- Editor


CHARTING BY HAND

Editor,

I'm a beginner in the stock market arena. I have read several books on technical analysis. I have a limited budget and no access to a computer or online service. I would like to chart the stock price action and volume by hand to get a feel for the market. Is there a distributor for Tekniplat graph paper or some other suitable type of paper for charting by hand?

Vernon Miner III
Franklin, NY

We don't know which distributor sells Tekniplat paper. Readers? -- Editor


READERS' CHOICE AWARDS

Editor,

Thank you for the interesting magazine. I especially like the Readers' Choice Awards, which allow me to see which system is best.

Could you please create an award category for companies that cater to electronic daytrading -- companies that allow scalp trading, such as buying at the bid and selling at the ask? I am sure many people would like to know about such companies and subscribe to their services.

Julian Ross
London, England

We'll surely consider it! -- Editor


CODING CANDLESTICKS

Editor,

Viktor Likhovidov's article "Coding Candlesticks(II)" in the March 2001 S&C included a web address where readers could download an Excel spreadsheet. However, I could not get to the address provided at the end of the article. Is the spreadsheet still available, and what is the address to access it?

Phil Olson
Kennewick, WA

Every month, we post new Traders' Tips on our website (www.Traders.com) and move the previous month's tips to the back-issue archives. To download the spreadsheet, go to:

www.traders.com/documentation/feedbk_docs/archive/032001/traderstips/CandleCodExcel.xls.-- Editor


PROFESSIONAL TRADING

Editor,

Thank you for publishing "Professional Stock Trading" in the March 2001 S&C. The article answered most of the questions I recently asked Don Bright (April 2001, "Since You Asked"). In fact, I almost felt Don was writing to me. Maybe I really should consider obtaining professional trader status. I realize now there is more to trading as a career than just being profitable.

Ron Scott, via e-mail


DATA FOR OBSCURE INDICES

Editor,

A lot of data vendors carry the close of the major indices; some even carry the number of advancing and declining issues and volume information. I am looking for a vendor that carries not only the close, but also the number of advancing and declining issues and volume data for some of the more obscure indices (for example, the RU1000 Value index, RU1000 Growth index, S&P 500, Wilshire 5000, and so on). Any ideas?

Mike Cummings, via e-mail

When looking for in-depth data, check Commodity Systems, Inc. (CSI), at www.csidata.com. -- Editor


CHARTING PRICE AND VOLUME

Editor,

I am looking for a software package that will chart/graph price action and volume together -- something with the high and low, but the width of the line would be sized based on the volume.

Dennis Engle, via e-mail

Look for packages that support equivolume charting. -- Editor
 


RELIABLE REAL-TIME DATA

Editor,

I have used technical analysis techniques in the past but have always had difficulty finding a reliable data source. Do any of the online real-time systems lend themselves to use with MetaStock or TradeStation?

B.H. Cook, via e-mail

Both MetaStock and TradeStation have real-time versions. Just ask the companies in question.


BROKERAGES

Editor,

I am looking for a broker who can trade a system that I developed. I need someone who can trade signals on the Globex for the S&P 500 futures that are generated at all hours of the day and night. Do you know of any brokers who do this? If not, can you point me in the right direction?

Jeff Ramsey, via e-mail

Many brokers support this service. For starters, try Zap Futures, MB Trading, and Trade Center, Inc. For a list of brokers, visit the Traders' Resource feature at our website, www.Traders.com. -- Editor


GAPO INDEX

Editor,

I just received the January 2001 S&C. The GAPO index described in that issue is interesting, but fails to take into account the impact of 24-hour trading. Currencies trade around the clock; therefore, their data series appear continuous without any gaps. The same is true with other commodities. In the sense of the GAPO, currencies will always tend to exhibit lower randomness, due to this reason. They are, however, the toughest market to trade from a forecasting standpoint.

The real question here is whether "erratic" and "risky" are related to any reasonable extent. I do not think the article addresses that question. Further, I do not see the rationale and theory behind the formula of the GAPO. How does it differ from simple volatility measures?

Makis Charokopos
Athens, Greece

Your criticisms are well-taken. GAPO is a good start, but it's clearly open to improvement. If we can ever pry Jayanthi loose from editing, we'll give her some time to revisit GAPO. In the future, we hope to cover articles that enhance the GAPO. -- Editor


EDUCATION FOR TRADERS

Editor,

I am planning to attend a graduate program with a curriculum that focuses on financial markets. I am not really interested in subjects such as organizational behavior or corporate finance. It's easy to find information on business schools, but there's very little on schools that specifically teach people how to trade or become money managers. Any recommendations?

Matteo Verna, via e-mail

Probably the furthest along in this respect is the University of Pennsylvania's Wharton School of Business. However, all universities are necessarily oriented to academics, not money. The best training grounds are in the industry.-- Editor


ERRATA: TRADERS' RESOURCE

Editor,

In the 2001 Bonus Issue of STOCKS & COMMODITIES, we incorrectly listed a company in "Traders' Resource." "Roberts-Slade, Inc.," should have read "Neovest, Inc." Neovest FirstAlert for Windows NT or 2000 can be ordered through Neovest, Inc., for $295 per month. For more information, contact Neovest, Inc., at 800 859-9718, www.neovest.com, or sales@neovest.com. We sincerely regret the error.


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