What did the VTO in VTOReport Stand for?
Posted 01 June 2006 - 12:09 AM
Volume Trend Oscillator or how about: Vertical Take Off?
From Forbes.com best of the web 12/3/01
Site: VTOReport.com (now closed)
Location: Pearl City, Hawaii
At 36, Vaughn Okumura, CPA, is retired and living in Hawaii. His story is the same as many successful individual investors: a few hard knocks at the start, "visions of losing it all" as a stock account balance was depleted and a final, miraculous recovery. Okumura says his holdings went from $35,000 to $7,000 to $2 million after taxes in a matter of ten years.
He started his site, VTO Report, in 1998 to satisfy his passion for stock investing and to teach others his technical analysis techniques. Fundamentals? "It's like driving forward by looking in the rearview mirror," he says. On the other hand, "the chart of a stock will give you clues as to how a particular company is operating long before it reports its earnings."
Okumura's most successful strategy outlined on the site is his short-term trades of the Nasdaq 100 index. Up 10% year-to-date and 184% since 1997, the portfolio uses a simple relative strength indicator to determine when the market is overbought and oversold. His site's "smooth" stocks are consistent winners over many years. "Most investors buy stocks in a downtrend thinking they've uncovered a bargain," he cautions. "But in most cases, they end up with a portfolio of clunkers."
NOTE: The strategy mentioned above is one of three shown on MY BLOG:
There is one online source that covers all of the above, and that is the VTO report from http://www.vtoreport.com. The data is updated regularly and graphed and is a one stop shop for examining these indications.
- Put/Call Ratio - The more people taking the bet that the market will drop (by buying puts), the larger the fear factor. Conversely, high call buying means the majority are betting on a rally. In both cases, the market goes against the crowd. Options volume can be used in the ratio but can be skewed by options strategies. Open interest by type, strike and expiration provides a more accurate indication of the financial commitment of traders.
- Short Interest - This one is limited to stocks only but is essentially the same as the put/call ratio. The more short interest, the more people are expecting lower prices and the more likely the market will rise.
- Commercial Activity - In the commodities markets, commercial players such as gold mining companies, grain processors, oil companies command a very large share of trading volume. These are the hedgers seeking to lay off risk onto the speculators in order to lock in prices. When commercials buy or sell, it is based on insider knowledge of the market and is an excellent indication of general market expectations. In the US, the weekly net commitment of traders report isolates who is trading what. It also breaks down large traders vs. small traders.
Edited by Rogerdodger, 01 June 2006 - 08:22 AM.
BIGGEST SCIENCE SCANDAL EVER...Official records systematically 'adjusted'.
Posted 06 June 2006 - 09:14 AM
Hmmm, what does VTO stand for.....?Gee, let me think, I wonder what Vaughn Okumura's Middle name is?