Letters to Technical Analysis
This column is our means of communicating with our subscribers and serves as an outlet for questions
and answers. Please feel free to write about anything that you would like to know more (or less) about or
pass along to the rest of us. We all run across trading techniques, services and products that have proven
to be useful to some degree under different market conditions. Without a constant source of new ideas
and subject matter coming from our readers, this magazine would not exist. Each issue is designed to
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Dear Kent (N. Kachigan):
I've found your article on Cobweb Dynamics extremely interesting. It certainly demonstrates that the
tools of neo-classical price theory can be applied to the analysis of individual stocks.
Micro-economic research at Merrill Lynch Economics usually stops at the industry level. Our analyses do
not involve the tracking of stocks or stock market behavior. However, I am forwarding a copy of your
article to Robert McCabe, who heads up the technical analysis section for ML Securities Research. I am
sure he will find that your insights have a direct relation to the type of research that he and his group are
Thank you for sharing this information with us.
James E. Carlson,
Executive Vice President
Merill Lynch, Pierce, Fenner & Smith Inc.
New York, NY