Commodity Strategies High-Profit Techniques for Investors and Traders

by Dorsey, Thomas J.; DeRosier, Tammy F.; Keeton, Paul L.; Morrison, Susan L.; Parker, Joshua B.

• ISBN13: 9780470126318
• ISBN10: 0470126310
• Edition: 1st
• Format: Hardcover
• Copyright: 2007-09-28
• Publisher: Wiley

Summary

Praise for Commodity Strategies "I have read many books on Point & Figure charting, but this is the first in its category-on the application of the time-tested methodology of Point & Figure charting, in particular, the concept of 'relative strength,' to pick outperforming commodities as well as to achieve diversification of non-correlated assets. If you are looking for a profitable and comprehensive methodology to making money from the commodity and currency markets and ETFs, look no further-you have found it. This book has it all." -Fred Tam, MPhil, CFTe, MSTA, lecturer in technical analysis at University Malaya and Open University Malaysia "Tom Dorsey is a market wizard who continues to stimulate the investor's mind. Commodity Strategies is powerful from start to finish with charts and many interesting insights. It's a clear guide for anyone looking to expand their investment horizon." -Joseph Barrato, EVP of Investment Strategies, Arrow Funds "This book and Dorsey's commodity strategies provide a much-needed, disciplined, and risk-managed framework for when and how to incorporate commodities into a portfolio. His investment methodologies along with the evolution of ETFs into alternative asset classes like commodities and currencies are a match made in heaven." -H. Bruce Bond, President and CEO, PowerShares Capital Management

Author Biography

Thomas J. Dorsey is President of Dorsey Wright & Associates, a registered investment advisory firm that specializes in research and structured products around the Point & Figure method of technical analysis. Formerly a senior vice president and director of options strategies with Wheat First Securities and a stockbroker with Merrill Lynch, Dorsey has become the world's foremost expert in Point & Figure charting. He has had appearances on mainstream financial media, including having been a regular guest on Fox News' Cavuto on Business, and received the Distinguished Speaker Award from the Wharton School of Finance Securities Industry Association. Mr. Dorsey is also the author of the Third Edition of Point and Figure Charting, which is published by Wiley.

Tammy F. DeRosier is a Vice President at Dorsey Wright & Associates. She is a daily contributor to the firm's "Daily Equity & Market Analysis Report," advises on ETF portfolios, develops training seminars in the Point & Figure methodology, and has appeared on CNBC and Bloomberg.

Paul L. Keeton is an analyst at Dorsey Wright & Associates. He is a daily contributor to the firm's "Daily Equity & Market Analysis Report" in addition to being a comanager of the firm's commodity account. Mr. Keeton also conducts training sessions and can be heard weekly on various financial radio shows.

Susan L. Morrison is a Vice President at Dorsey Wright & Associates. She runs the daily "DWA Equity Roster" and comanages the firm's commodity account. In addition, Ms. Morrison teaches training sessions in the Point & Figure methodology.

Joshua B. Parker is a partner in Gargoyle Asset Management LLC, an investment advisory firm that specializes in options evaluation and options-based trading strategies.

Table of Contents

Preface	p. ix
Developing a Trading System	p. 1
Patterns, Trends, and Price Objectives	p. 13
Chart Patterns	p. 14
Trend Lines	p. 15
Price Objectives	p. 25
Using Spot Charts	p. 30
Commodity Market Indexes	p. 32
Spot Currency Charts	p. 41
Other Useful Spot and Continuous Charts	p. 48
Relative Strength with Commodities	p. 39
RS Calculation Example	p. 60
Other Strategies and Tools	p. 71
Support and Resistance	p. 71
Big Base Breakouts	p. 75
Changing Box Size	p. 77
Using Pullbacks and Rallies to Improve Risk-Reward	p. 82
Momentum	p. 85
Trading Bands	p. 90
Putting It All Together	p. 95
Old Friends with a New Trend	p. 95
Our Approach	p. 97
True Diversification-You Don't Have to Go Far to Find It	p. 98
Putting It All Together	p. 100
Initiating and Managing a Position	p. 102
Risk Management	p. 102
Diversification	p. 103
Stop Loss Points	p. 105
Risk-Reward	p. 106
Putting It All Together: Specific Trading Examples	p. 110
Exchange-Traded Funds (ETFs) and Commodity Markets	p. 129
Timing Is Everything	p. 129
History of Exchange-Traded Funds	p. 131
Today's Commodity/Currency ETF Market	p. 133
Evaluating the Point & Figure Chart of Commodity ETFs	p. 136
Relative Strength Comparisons	p. 139
Know What Is Inside	p. 147
What Does the Future Hold?	p. 151
Mutual Funds and the Evolution of the Commodity Markets	p. 153
From Fruit Baskets to Baskets of Fruit	p. 153
Oils Well That Ends Well?	p. 155
Soft Dollar? Try Franklin's Hard Currency Fund	p. 168
Thinking Tactically about Cash	p. 172
Contemplating Cash	p. 174
The Big Picture?	p. 177
Commodity/Futures-Related Mutual Fund Vehicles	p. 178
Final Thoughts	p. 179
Commodity and Futures Reference Sheet	p. 191
Index	p. 193
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