OPENING POSITION
January 2002
1982
Technical analysts read their first issue of Technical Analysis of
STOCKS & COMMODITIES. Other magazines have come and gone, but we're
still here 20 years later, and we're still going strong. The intervening
years have seen a lot of changes, not only in the increasing interest in
technical analysis, but in terms of products and technology.
1982
The New York Stock Exchange had its first 100 million-share day. Two years
later, that number soared to 200 million. All the optimism dwindled in
1987 when the markets witnessed their largest one-day drop. But the optimism
returned in the 1990s, with the Dow Jones Industrial Average (DJIA) hitting
3000 in 1991 and skyrocketing to more than 10,000 by 1999 with a trading
volume just shy of two billion.
2002
What will we see next?
We entered the new millennium with dramatic
events that have sent the markets on an unpleasant ride. We've seen the
dotcom era turn into the dotbomb followup; we've seen an economy on the
brink of a recession; and we've seen terrorist attacks triggering the start
of a war. But whether bullish or bearish, the markets will evolve. As we
move on, we can expect to see more products being offered by the exchanges
as the trading landscape alters. Exchanges will become more competitive
as more and more make the transition from a members-only organization to
a for-profit one. We can expect to see more global alliances, which will
ultimately make it easier to trade products offered in other countries.
We discuss these changes and more in our interview, "The Future Of
Trading," which begins on page 48.
In addition to changes in the physical marketplace,
we have seen tremendous developments in technology. Hand-drawn charts and
indicators have been replaced by software platforms where you can create
code and automate entire systems, all on an electronic screen. In "Relative
Vigor Index (RVI)" by John F. Ehlers, you can see how an old concept
can be made more practical and useful by using modern techniques. But you
don't have to go into complexities. You can opt to take simpler routes
such as those brought to light in "Detecting Trend Direction And Strength"
by Barbara Star and "Point & Figure Charting" by David Penn.
This issue starts off STOCKS & COMMODITIES'
20th year of bringing useful methods and techniques to our readers, and
we hope you'll be around for the next 20. Here's to a profitable new year
for all our loyal readers. Thank you for reading our magazine, and we wish
you a happy - and rewarding - 2002.
Jayanthi Gopalakrishnan,
Editor
© Copyright 2001, Technical Analysis, Inc.
