Cover Story Euronext, NYSE, Eurex: The Jostling Continues By Steve Zwick With all the attention focused on the battle for control of the Chicago Board of Trade, it’s easy to forget that European exchanges haven’t quite finished their own jostling for position on the View Past Issues | Subscribe Breaking News Credit where it’s due By Chris Mcmahon The OTC market place is growing even faster than the exchange traded futures and options markets; and credit derivatives, which are intended to offer protection against credit events such as a Forex crackdown By Yesenia Salcedo On Feb. 27, 2007, the United States District Court for the Southern District of New York issued a consent order of permanent injunction against Commodity Investment Group, Inc. (CIG) of Ft. Grant in the know? By Chris Mcmahon In response to his request for a separate trial and assertion that he was a minor participant in the fraud at Refco, prosecutors have detailed some of the case that they are bringing against Tone N. RJO gets bought by private equity group By Daniel P. Collins One of the oldest private futures brokers is taking on partners in an attempt to capture more market share as futures continue to display dynamic growth. R.J. O’Brien & Associates, Inc. (RJO), which CME ups bid for CBOT, finally By Daniel P. Collins In the weeks following the Intercontinental Exchange’s (ICE) unsolicited bid for the Chicago Board of Trade (CBOT), there seemed to be a disconnect between CBOT members and the pronouncements of the RCG overreaches By Chris Mcmahon In mid March, Judge James T. Moran sanctioned Rosenthal Collins Group (RCG) and ordered the company to pay for Trading Technologies International Inc.’s (TT) legal and software consulting fees after Trading Techniques Trading stocks with Fibonacci and Lucas By Jeff Greenblatt The time element of technical analysis works the same way as the instrument approach that a seasoned pilot uses to land a plane in zero visibility. “Finding patterns with the Lucas Time Series” Understanding demand in cash-based metals By Jeffrey M. Christian Focusing on short-term commodity price trends, many investors and other market observers conclude that fundamentals do not affect prices, and that prices are determined primarily by speculative A new trick for an old indicator By Larry Connors The Trin is one of the most widely followed market timing indicators is the Trin. It can be found reported on and discussed in publications such as The Wall Street Journal, Barron’s, Investor’s Embracing the option hedge By Robert Steelman After presenting several trading techniques in the context of two short-option strategies in “Understanding options,” April 2007, here we’ll expand our resources for managing the trade after it is in Technology & Trading Testing your trading system By Yesenia Salcedo Once you have built your trading system, you must test it before putting money at risk. CTA Joe Krutsinger, who has developed more than 700 trading systems, put it this way, “Before you can go Getting real with forex By Ugur Cetintemel The industry’s solution is a new way to process data: stream processing. Stream processing makes it possible to execute the same types of queries and computations against real-time streaming data VectorVest Online v6.0 By Leslie N. Masonson Recommended System: PC with Pentium II 266. Windows 98, NT 4.0, Windows ME, Windows 2000 or XP (runs best). Internet Explorer 6.0. 64 MB of RAM, 256 MB. 1 GB hard drive space. Internet access with Forex Trader Getting started: Lessons from a trader By Abe Cofnas Forex traders are not born, they evolve. Successful traders have many things in common. They have applied knowledge, developed timing skills, can recognize repeatable patterns and the ability to Futures 101 Burning at both ends By Chris Mcmahon Japanese candlestick charts date all the way back to the eighteenth century Japanese rice markets, but don’t think for a minute that today’s electronic traders can’t learn a trick or two from this Spotting reversals By Steve Nison Using a candlestick chart can help you to spot an early reversal long before traders who don’t use them. The red semi circle highlights a classic candlestick signal called a Bearish Engulfing Industry Trends Automated trading: An exchange’s best friend By Steve Zwick Peter Green has been there from the start. The company he runs, Kyte Group Ltd., opened its first trading arcade in 1997 with roughly 30 former floor traders from the London International Financial Markets Is the end of easy money the end for metals? By Joseph Nicholson In 2006, gold, up 23%, and silver, up 45%, both soundly outperformed the S&P 500 and the Dow Jones Industrial Average, which improved 13.6% and 19% respectively. In fact, despite the attention paid Tech Talk: Appearances can be deceiving By Joseph Nicholson This weekly silver chart immediately suggests the current five overlapping upward waves are part of a corrective pattern, needing an additional move up. Expectations for new highs in silver depend Editor's Note Gold fever By Ginger Szala It seems this column should be devoted to the bull run in our precious metals, and indeed, many analysts believe those markets will continue their march upward (see “Is the end of easy money the end Book Reviews Beating the Financial Markets: Combining Small Biases into Powerful Money Making Strategies By Lawrence M. Seldin While there are more in-depth books on the subject, Collins lays out a soup to nuts approach to give the reader a clear blueprint to creating trading systems. The book utilizes a building-block Master Traders: Strategies For Superior Returns from Today’s Top Traders By Leslie N. Masonson According to Greg Collins, the portfolio manager who wrote the introduction, master traders possess certain key characteristics. These include self-evaluation, humility, maintaining a strategy and Market Analysis Sweets for the sweet By Chris Mcmahon Cocoa has been one of the darlings of 2007, says James Cordier, head trader at Liberty Trading. “And if you believe in the commodity bull run, it has the best fundamentals: smaller production in 2007 Creamed corn By Chris Mcmahon Corn was already in a downward correction when the USDA planting intention report, released in March, indicated a planting intention of 90 million acres, a 12 million acre increase over last year, Short covering fuels rally By Chris Mcmahon As the S&P 500 reeled from the late February early March correction, few predicted the market would bounce back so aggressively, adding almost 80 points, worth $40,000, since March 14. “There was so Yen carried lower By Chris Mcmahon Rod David, president of Avidtrader.com is bearish the yen. Back in January he noticed a “reverse descending triangle,” one that begins at its apex and expands to include three lows at 0.8350. “It’s a Managed Money FSA welcomes alternatives By Daniel P. Collins While the U.S. Securities and Exchange Commission is attempting to limit the pool of investors able to access certain alternative investments, the United Kingdom’s financial regulator, the Financial Thinking of becoming a CTA or CPO? By Beau Greiman The growing interest in alternative investments in recent years has enhanced the demand for Commodity Pool Operators (CPOs) and Commodity Trading Advisors (CTAs). A growing number of CPOs and CTAs Options Strategy Question: What strategy can offset the added risk in a position during a period of high volatility? By Ron Ianieri It is a particularly good time to look at strategies to offset volatility risk because implied volatility in equity markets has recently spiked. With an increase in volatility, the price of all New For Traders New for Traders By Chris Mcmahon The Chicago Board Options Exchange began publishing the CBOE S&P 500 VARB-X Strategy Benchmark (VTY) in March. The index tracks the performance of a hypothetical volatility arbitrage trading strategy People Becks to lead Campbell team By Chris Mcmahon International Securities Exchange Holdings Inc. announced that Gary Katz will succeed CEO David Krell in January. Krell will retire and become chairman of the board. Katz is currently chief operating News Boca Bits and bites By Daniel P. Collins ~Former Fed Chairman Alan Greenspan when asked to compare the CFTC and SEC. Greenspan, who acknowledged trading oats at the CBOT in his younger days, said he preferred the regulatory model created by Grind it out By Chris Mcmahon metals complex, the New York Mercantile Exchange and its metals division, Comex, finally came to terms and agreed to launch electronic trading of the Comex metals complex on the CME’s Globex trading NYSE, Euronext connect By Steve Zwick With all the attention focused on the battle for the CBOT, it’s easy to forget that European exchanges haven’t quite finished their own jostling for position on the global trading stage. In April, USFE launches contracts on CBOT merger By Yesenia Salcedo The United States Futures Exchange (USFE) has launched binary event futures (BEF) that allow traders to take a “yes” or “no” position on whether or not an event will take place on or by a specified Trader Profiles Capricorn FX: Tested methods that work By Steve Zwick For Mikkel Thorup and his two partners at Swiss-Danish currency group Capricorn FX, trading is neither fancy nor avant-garde. “We’re not trying to do neural networks or things like that,” he says.