Up-Coming
events:
Last Chance for the "Early Bird" seminar fee of $495 will expire Oct 29th April 2008 Seminar at Sea cruise to Panama Canal after OCT 29th the discount price will no longer be in effect and the normal seminar price will be $795 Seminar at Sea cruise will be departing out of FT. Lauderdale on April 12th, 2008. It’s an 8 day cruise to the Panama Canal with 4 sea days of classroom activities. We would love to have everyone join us! After all, we need to have fun too! Complete details can be found on the Tradingourway website. Note: We encourage you to Sign up now! and take advantage of the "Early Bird" pricing. ___________________________________________________________________________________________ Kermit Prather will be doing 2 presentations on October 27th and November 4th covering major reversal candlestick patterns, their performance and their probability of reversal . Session Topics will be: Candlestick Patterns for Profitable Trading · Major Bullish and Bearish Candlestick Patterns o How to Distinguish Between True Signals and Noise · How to Identify the Trend and Reversals · Combining Indicators with Candlestick Charting to Enhance Probability · Rules for Trading that Work · See Recent Chart Examples for Each Major Candlestick Pattern · Learn Where You Can Find Free Resources on Candlestick Charting o Back Testing and Gauging Results o Books o Websites o Seminars - including the April 2008 Seminar at SeaThe October 27th session at the Jan Platt Library in Tampa 2:00 pm to 5:00 pm will follow the normal 10:30 am to 1:00 pm Cornerstone meeting featuring guest speaker - Toni Hansen. See directions to Jan Platt Library below. The Nov 4th session will be in Ft. Lauderdale, Fl: Date: Sunday November 4th Time: 9:30am - 12:30pm Location: Courtyard Marriott 2440 West Cypress Creek Road Ft. Lauderdale, FL. (Click Here For Map) These sessions are only a small part of what you will receive at the full seminar at Sea. Click Here for More Details | ||
Previous
Issue: In the previous issue I discuss major Candlestick patterns. As a result I was asked to do follow-up presentations mentioned above. | ||
This
Issue: What is a Sector, an Industry and sub-industry? One of the major problems facing the average trader is the mis-use of terms such as sectors, industry and sub-industry. Is it any wonder when you have everyone creating their own versions. Why is it that IBD, Wall street journal, Barrons, Valueline, Zacks and so many others find it necessary to create their list and rankings of industries and now sectors? Granted not all have totally their own versions and that leads to even more confusion. So it's no wonder the average traders can't keep it straight. Example, I was having a discussion a few days ago on a chat session and someone stated that the "Shipping" sector was on fire. Shipping is not a sector. It is a sub-industry of the "Transportation" industry. That is part of the "Industrials" sector which is down 2.3% over the last 3 months. In my case, I use Worden Brothers Telechart charting platinum service which uses the Hemscott industry and sub-industry grouping and Sector identifications. On Telechart I set up the watchlist tabs so that I can view the performance percentage over several times periods for any stock, ETF or index. In the pictures below I show the watchlist for the Major Sectors and indices and the Hemscott groups for the Transportation industry and sub-industry. This shows the price movement for the 1, 5, 30 and 63 day intervals. Here I can see at a glance how each sector is performing or the industry along with the sub-industry in the Transportation industry and how they are each performing.  You can see from the Hemscott groups that the Transportation industry (MG770) is made up of 7 sub-industries (MG771 thru MG777). All having to do with the movement of goods and people.  Yet Transportation is but a small part of the Industrial Sector. So you would think that CNBC, Blomberg and all the talking heads would be more careful how they refer to companies and what they represent. They talk about a few companies in a sub-industry and then make it appear to be representative of the entire sector. In the newsletter 09-09-07 I talked about Sector rotation and the website www.sectorspdr.com On that site you will find the 9 ETFs that represent the 9 Sectors. If you explored the site and poked under the pictures you found list of stocks making up each ETF. I, also, pointed you to the Stockcharts.com webpage that gave you a 2 month chart of all 9 ETFs with 20 moving average above the 50 Moving average and all 9 ETFs were in an uptrend. http://stockcharts.com/charts/candleglance.php?XLF,XLK,XLI,XLB,XLE,XLP,XLV,XLU,XLY Since then, 6 of the 9 have started to decline and are pulling back. As usual the Dow Jones Transport (DJ-20) is leading the way in the down turn as shown in the picture below. Not surprising as transportation usually shows the growth and slow down a few months before companies have to make public their earnings and sales.  | ||
Summary: The information in these newsletters are but a small fraction of what will be covered on our "Seminar at Sea". So don't miss the Early Bird pricing we have been offering, sign up before Oct 29th, 2007. If each of us makes an effort to use the proper terminology it will take away some of the confusion we and others bring upon us. Please feel free to send an email to kermitp@tradingourway.com with your suggestions. If you likethe newslettr feel freeto forward it to your friends usingthe forwarding link below. Thank You and good trading, Kermit Prather |
