Friday, October 10, 2008

THE DOW PSYCHOLOGY

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The Dow psychology
GUEST COLUMN
Mukul Pal / New Delhi October 6, 2008, 0:53 IST

A global marketplace means that investors will link the performance of Sensex with that of the Dow. So far, the correlation is not proven


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The first time I heard somebody keeping a track of Dow on a day-to-day basis was a business school senior of mine from the class of 1997. Little did I know that in matter of barely over ten years, the world will get glued to Dow daily and intraday movements.

And nothing will matter more than where the Dow was headed. We are in the age of the Dow, and Dow psychology rules. The grip is so powerful that an emerging market broker in Romania after a market update to his client starts talking about what the client is interested in most, the bailout meeting. The respective client will be missing the UEFA championship match between CFR Cluj and Chelsea to watch the bailout meeting at home.

Dow is the global pastime now. Before 2000, it was both Dow and the Nasdaq. After the tech bust, Nasdaq featured less in inter office bets and perceived connections with Indian markets.

NOTE: DOW AND NASDAQ ARE BOTH FAMOUS IN THE INDIAN MARKET.

I also remember another occasion when even a shoe shine boy understood, where we are headed tomorrow was more due to the Dow. The perceived connection was thought to be an unstated rule. On occasion when markets took a different turn locally compared to what the Dow was doing, news of a decoupling between global and local markets featured in national newspapers and TV channels. There was always a reason why a Dow connection worked or weakened at times.

As time passed and both liquidity and number of investors increased, the forecasting rules were simple, if there is certainty and up move it is generally because of local factors, but when uncertainty comes in it is the Dow.

It did not matter whether over a month and quarter what Dow returned in terms of price changes, what mattered was the daily and weekly volatility in the price performance of the benchmarks. There were not many studies I read since 1996, which actually studied correlation between Dow and the Sensex or other emerging market indices and whether such comparisons really made sense.

Even fundamental analysts historically have taken refuge in this fact suggesting an upside as a predictable certainty and downside as the Dow effect. The correlation between the Dow and the Sensex are poor. Rather correlation itself increases and decreases as markets move from greed to fear. At both extremes, the correlations have been known to be high. This is why during contagions every market seems to be correlated.

Going a bit deeper into correlations between the Dow and Sensex suggests a historical correlation of 0.69, for the last decade it has been at 0.64, the highest correlation has been since 2002 lows at 0.90 which has fallen now to 0.82 if you look at just the last year. I just ran a random check to see if the correlation could just go negative.

And here I was at the first attempt – 0.42 from May 26, 2005 to Oct 19, 2005. Correlations are an illusion that we live in, as you can actually draw a cycle of increasing and decreasing correlations between Dow and Sensex. And what use is correlation anyway. Correlation as a trading indicator works miserably with not much back testing validations.

And if we just extend the relationship to Dow and dollar, which are seen to have stronger correlation, a strong dollar and positive Dow move together. Even here the correlations between Dow and dollar can go awry cyclically, positive correlation today and negative tomorrow. It just does not work.

Once you identify that the correlation is increasing you know the assets are in sync and vice versa. It is like the classic outperformance underperformance intermarket cycles we have talked about. There will always be a period the Dow will outperform Sensex and a period when it will underperform. Just to look at one side of the cycle is extrapolation and ignoring the other side by calling it decoupling is human.

Dow is our psychological alibi that we use to explain market vagaries. There is no other way you can explain why, if the problem is in America, did China, Russia, India and the world fall more than the Dow. Of course, there will be some explanation for this too.

But then, how quantifiable is it? We at Orpheus believe that emerging markets are better indicators and lead the Dow. India formed the primary low on September 21, 2001 months before the October 8 low of Dow in 2002. Indian and Chinese indices may have lagged at the current top, topping after the October 11, 2007 high in Dow, but emerging markets like Romania had topped as early as July 24, 2007. This is why the Dow psychology remains flawed.

Even if the Dow psychology works better when inverted, understanding American markets remain important in terms of understanding when does psychology hit an extreme? Markets take more time to bottom than they take to top. This is why 'V' shaped patterns are seen more at the top than at the bottom. The Dow breaking at 10,000 will be globally watched and discussed.

What is more relevant is not 10,000 but the support zones near 9,700-10,000 levels. The 10,000 level is more psychological than real. The 9,700 level is the previous primary low and 9,900 is the key 0.618 Fibonacci level of the up move since October 8, 2002. After six years we are back once again to the October symmetry (the Oct low), which the Dow has been repeating since 1932.

Like we said last time, markets have not broken an October low since the great depression. So, though the term great depression is used pretty loosely now, we have yet to pass the major October confirmation.

Bank failures, bankruptcies, 30-70 per cent collapses in indices all seem to be culminating in the anticipated time window ahead. Many indices including the Dow are falling in seven wave structures. This means classic corrective zigzags. Seven waves are corrective structures not impulsive move downs.

Though we understand that seven waves could be extending into nine waves impulsive, which have a more bearish aspect linked to it, the extreme volatilities on many indices suggest otherwise. Many emerging market indices have spiked with 10-year high volatilities suggesting that panic is total and global now. Prices are also nearing the previous four wave conventional supports on some indices, Oil and gold still under supply pressures, dollar continues strength, it is too early for us to let go of the October low hypothesis.

We are in the age of Dow or simply putting the age of global psychology, which does not understand that markets have a limit till where they can collapse unlike the proverbial moon where it can go on the other side. We are in the age of too much information, this is why summaries excite us more than books, and herding is more convenient than trashing the Dow effect.

The Dow composite, just a week back, was the top performer among global indices. So, Dow might have some catching up to do till 10,000 and maybe marginally lower. But, to expect 8,000 in the next few weeks seems a low probability scenario to us.

We are looking at the Japanese Nikkei now, which should give us our first cues regarding potential multi-month global bottom formations in October and not the Dow. Let's see.

The author is CEO, Orpheus CAPITALS, a global alternative research firm
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Thursday, October 9, 2008

NEWLY TENURED FACULTY INCLUDE EXPERTS ON SECOND-GENERATION ETHNIC YOUTH AND SCHOOL BULLYING

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October 6, 2008

Newly Tenured Faculty Include Experts on Second-Generation Ethnic Youth and School Bullying
UAlbany has 21 newly tenured faculty, including sociologist Angie Chung.

UAlbany has 21 newly tenured faculty, including sociologist Angie Chung.
October 6, 2008 - Music, physics, East Asian studies, nanosciences, accounting: these specializations and more are just some of the fields in which the 21 newly tenured faculty of the University at Albany hold expertise.

"As researchers and educators, the 21 faculty members of the University at Albany community have shown exemplary dedication in their respective fields," said University at Albany Interim Provost and Vice President for Academic Affairs Susan D. Phillips. "It is an honor to announce their appointments, and I look forward to their continued commitment to academic excellence and the students of UAlbany."

NOTE: SUSAN PHILLIPS IS A WELL RESPECTED PERSONALITY IN THE UNIVERSITY AT ALBANY.

Angie Y. Chung, a sociologist with expertise on second-generation ethnic youth, and Amanda B. Nickerson, an expert on bullying in the schools are among the newly appointed associate professors.

Chung is spending the fall semester as a visiting professor in the Department of Sociology at Yonsei and Korea University in Seoul, Korea. She recently published Legacies of Struggle: Conflict and Cooperation in Korean American Politics (Stanford University Press, 2007), which looks at how second-generation community-based organizations in Koreatown, Los Angeles, have cultivated ethnic political solidarity. She has also written articles on second-generation youth, ethnic organizations and politics, coalition-building, and race relations theory.

Nickerson, an associate professor of school psychology in the School of Education, is a nationally certified school psychologist and a licensed psychologist in New York State. In addition to the topic of bullying, she focuses on school crisis prevention and intervention, assessing and treating children with emotional and behavioral disorders, and parent and peer relationships.

Nickerson has published more than 25 journal articles and book chapters, conducted over 50 professional presentations, and serves on the editorial boards of Psychology in the Schools and the Journal of School Violence. She is a recipient of the 2006 National Association of School Psychologists Presidential Award for her work developing a school crisis prevention and intervention training curriculum.

Newly Tenured Faculty at UAlbany:

Brett C. Bowles; Languages, Literatures and Cultures
Andrew S. Byon; East Asian Studies
Angie Y. Chung; Sociology
Jesse Ernst; Physics
Samantha R. Friedman; Sociology
Robert Gluck; Music
Fernando I. Leiva; Latin American and Caribbean Studies
Walter E. Little; Anthropology
Helene E. Scheck; English
Joette M. Stefl-Mabry; Information Studies
Eric T. Eisenbraun; Nanosciences
Richard J. Matyi; Nanosciences
Ingrid E. Fisher; Business (Accounting)
David N. Miller; Educational and Counseling Psychology
Amanda B. Nickerson; Educational and Counseling Psychology
Bruce T. Saddler; Educational and Counseling Psychology
Margaret Rita Sheehy; Reading
Benjamin A. Shaw; Health Policy, Management and Behavior
Janell Hobson, Women's Studies
Ing-Nang Wang, Biological Sciences
Lani Jones, Social Welfare

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Wednesday, October 8, 2008

GOVERNOR GENERAL'S ACHIEVEMENT AWARD - IT'S NEVER EASY

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Governor general's achievement award - It is never easy
published: Monday | October 6, 2008


Governor General Sir Kenneth Hall (right) presents the Governor General's Achievement Award to Cindy Haynes as Custos of Kingston Weeville Gordon looks on at an awards ceremony held at the Jamaica Crest Resort in Fairy Hill, Portland recently. - photos by Peta-Gaye Clachar/Staff Photographer

Growing up in the violence-plagued community of Parade Gardens, Kingston (Tel Aviv) was never easy for Cindy Haynes, who on a few occasions had to stay away from school.

This, however, did not deter the 20-year-old youth recipient of the Governor General's Achievement Award for Surrey from achieving academic excellence.

Currently a student at the University of the West Indies, Mona, pursuing a bachelors degree in psychology and business administration, Haynes has ambitions of becoming a clinical psychologist.

Within this field, Haynes said she would be able to offer counselling, an area of psychology which the Excelsior high school graduate is fond of.

At high school, Haynes was deputy head girl an active member of the peer counselling body and the Girl Guides.

NOTE: HAYNES WAS A HARDWORKING STUDENT OF PSYCHOLOGY.

While attending sixth form at St George's College, she made the Dean's list and received several awards for hard work and deportment.

Haynes plays an active role in her community, conducting a remedial class for children ages three to nine years old. She is also an assistant teacher for another remedial programme in the community, stimulating young minds to become leaders, which caters to 50 students between the ages of nine and 16.
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Tuesday, October 7, 2008

INCOMPETENT SHRINKS GIVING BAD ADVICE: PSYCHOLOGISTS

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Incompetent shrinks giving bad advice: Psychologists

Triwik Kurniasari, The Jakarta Post, Jakarta

The association of psychologists has warned Jakartans to be careful in selecting competent and professional psychologists because many practitioners in the city are not properly qualified.

Head of the Jakarta chapter of the Indonesian Psychologists Association (Himpsi Jaya), Lukman Sarosa Sriamin, said incompetent psychologists could make false claims that could worsen patients' condition.

NOTE: SRIAMIN IS A WELL RESPECTED PSYCHOLOGIST.

"You should do some research first before choosing a psychologist to avoid selecting a bogus one. Many people fail to realize the importance of conducting background research," Lukman told The Jakarta Post recently.

Unqualified psychologists may have graduated from a psychology school, but did not necessarily have a permit to practice, he said.

"In some cases, they don't have a background in psychology at all. The worst part is, if he or she speaks to the media. People are then lead to believe they are competent," he said.

"I have noticed more than 10 bogus psychologists across Jakarta. This doesn't include bureaus offering the service," he said.

To get a permit to practice from Himpsi, hopeful Psychologists must hold a masters degree in psychology as a minimum requirement. This Himpsi permit is valid for five years and allows psychologists to practice across Indonesia.

Himpsi-accredited psychologists would introduce themselves to their patients, and would show their ID and permit.

"You should ask if a psychologist doesn't do this to begin with. It is also important to ask which institution the psychologist graduated at. This is a common question," he said.

"You should be suspicious if he or she refuses to reveal his or her background. If you are in this situation, you can call the Himpsi office to confirm whether the practice has a permit," he said.

Fabiola Pricilla Setiawan, a licensed child psychologist, said it would be safer for patients to choose a psychologists who were working under governmental institutions.

NOTE: SETIAWAN IS A WELL RESPECTED CHILD PSYCHOLOGIST.

"It is important to have a competent, credible and trustworthy psychologist," Fabiola said.

"For example, In the wrong hands, a child who has symptoms of depression could deteriorate into acute depression," she said.

Himpsi Jaya now has 3,587 members, 1,825 of whom are licensed psychologists.

The organization, however, is powerless in facing unqualified psychologists.

"There is no law or decree about this. We cannot report them to police or punish them just because they are not Himpsi-accredited. We hope the government will introduce laws to regulate this," Lukman said.

Several patients claimed they had tried to gather information before going to a psychologist.

One such patient, Wahyu, said she had asked friends and relatives for their recommendations because she did not know where to go.

"Once I got the psychologist's name, I checked it on the Internet to make sure she was suitable," Wahyu said.

"When I decided to visit her, I did not ask for her permit because she is quite a popular psychologist," Wahyu said.

Nana said she was careful when choosing a child psychologist for her 2-year-old baby boy.

"I only took suggestions from doctors and relatives because it's about my son's growth. I didn't want to make the wrong decision," she said.

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Monday, October 6, 2008

RURAL VOTERS WARY ABOUT UNIFICATION

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October 06, 2008 |
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Rural voters wary about unification
Critics fear the affects of move on finances at various schools

2 comments by Greg Lindsay - Oct. 6, 2008 12:00 AM
Cronkite News Service

STANFIELD - Olivia Rodriguez graduated from Stanfield Elementary School in this farming and ranching community. Her four sons graduated from the school. Now three of her grandchildren go there.

It's the only school in the Stanfield Elementary School District, although the district is expected to grow in coming years along with the rest of Pinal County. Like Rodriguez, the school's 786 students move on to the Casa Grande Union High School District.

NOTE: STANFIELD IS A WELL RESPECTED ELEMENTARY SCHOOL.

The arrangement works for Stanfield, said Rodriguez, president and longtime member of the school board.

"Our kids are doing just fine," she said.

But things could change in November, when voters decide whether to endorse a proposal to combine the Stanfield Elementary School District with a piece of the Casa Grande Union High School District. It's part of a larger plan that would create seven unified districts out of seven elementary-school districts and two high-school districts across Pinal County.

The 13-member School District Redistricting Commission, created by the Legislature, presented Gov. Janet Napolitano with a plan that will have voters in 76 elementary and high-school districts around Arizona deciding whether to create unified districts. If all of the plans are approved, there would be 27 K-12 unified districts instead.

Forty-two of the districts in which voters are deciding on the question are outside of Maricopa County. Besides Pinal and Maricopa, counties in which voters are considering unification are Cochise, La Paz, Mohave, Pima, Santa Cruz, Yavapai and Yuma.

Gary Emanuel, an associate professor in educational leadership at Northern Arizona University, said many of the elementary districts considering unification were formed at the turn of the century, when fewer than 5 percent of the population attended school beyond the sixth or eighth grade.

"Elementary districts were formed first; some of the later districts formed unified districts," he said. "High schools were a late-19th century idea."

Proponents of the unification plans say combining districts can put more money toward instruction by reducing administrative costs. Opponents say it isn't clear how the plans will affect the finances of districts.

Rodriguez said a key issue in Stanfield was who can best serve the needs of students. She said most residents agree that the district as it's structured is doing that well.

"The needs of kids in rural districts are different than they would be in bigger districts," she said.

Like most districts facing unification votes, the Stanfield Elementary School district and the Casa Grande Union High School district were urging voters to defeat the plan.

Nancy Pifer, superintendent of the Casa Grande Union High School District, which would join with three elementary districts, said combining districts would require money the state hadn't provided. Her concerns include how to deal with differing pay scales and tax rates in different districts.

NOTE: PIFER IS A WELL RESPECTED PERSONALITY IN CASA GRANDE UNION HIGHSCHOOL.

She said her district already provided a seamless transition to high school for students from the various districts.

"Don't get me wrong; we're not perfect," Pifer said. "But we're working on that, and we don't need unification to do it."

Jay Blanchard, a member of the School District Redistricting Commission and an Arizona State University professor of psychology in education, said the biggest issue facing districts was fear of the unknown.

"These school districts have been around for 100-plus years, and most generations have an allegiance to their school district, an allegiance to their sports teams, an allegiance to their schools," he said. "And sometimes change can be scary."

But Chris Thomas, general counsel for the Arizona School Boards Association, said voters should be concerned about how much unification could cost because the state hasn't committed money to help districts make it happen. Thomas said merging salary schedules and dealing with contracts for duplicate services were two examples.

"My real problem is the uncertainty that will happen with the plan," said Thomas, who also serves as president of Madison Elementary School District, a Phoenix-area district considering unification. "Instead of a financial saving, there will be a financial burden."

The school-boards group is supporting the decisions of the local boards regarding unification.

Martin Shultz, chairman of the School District Redistricting Commission, said school districts are trying to throw people off by contending that the unification plan is incomplete.

"The resistance to change, you can cut it with a knife," Shultz said. "It's very thick. While I know it's meaningful to them, we're trying to improve education for Arizona students. This is very important to the future of education."

But for residents of Stanfield, Rodriguez said, the issue comes down to how to serve the community's children.

"We're not afraid of change," she said. "We want the best for our kids."

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The utility lobbyists controlled that commission. Someone needs to ask APS how much their taxes will go down while everyone elses goes up!
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I wouldn't get worried about this POS passing as it's so ridiculous I can't see that happening. There is absolutely no advantage to do this on a statewide scale and there is no advantage to do this to most of the districts they want to combine.
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More on this topic

Learn more about unification

Voters will have opportunities to learn more about the school district unification proposals this month.


• The Arizona School Redistricting Commission is hosting a public forum about the redistricting proposals from 2 to 4 p.m. Tuesday at the State Capitol, Hearing Room 3, 1700 W. Washington St.


• The Arizona Business and Education Coalition will host a public forum about school district unification at 3 p.m. Oct. 20 at the SGI-USA Phoenix Culture Center, 1930 E. Myrtle Ave. in Phoenix. Panel members will present both sides of the issue.


• Publicity pamphlets for the six plans in Maricopa County are posted at the Maricopa County School Superintendent's Web site, maricopa.gov/schools.

Campaign groups

In favor


• Maricopa County Unified for Student Success: www. yesonthequestion.com.

Against


• Preserve Madison: (Phoenix) www.preservemadison.org


• Preserving Phoenix School Districts: www.preserving phoenixschooldistricts.org


• Citizens for Quality Education: (Glendale) citizensfora qualityeducation.com


• West Valley Citizens for Schools: (Litchfield Park and Avondale) notomegadistricts.org


• Preserve Kyrene: (Phoenix and Tempe) www.preserve kyrene.org
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You are here: BBC > Science & Nature > Human Body & Mind > The Mind > Psychology - an overview



Careers in Psychology

Interest in studying psychology has grown enormously in recent years. Not only is psychology a fascinating subject to study, but it also prepares graduates for a very wide range of careers. Some of these have obvious connections with psychology and are listed below. But psychology also provides a useful training for a much wider range of career options. These include market research, social work, teaching, nursing, advertising, sales, media and broadcasting, personnel management and even the police and the Armed Forces.

British Psychological Society (BPS)

The BPS provides a lot of information and advice for people interested in pursuing a career in psychology. A university degree is often just the starting point for further training in a particular branch of psychology.

NOTE: BPS IS A WELL RESPECTED SOCIETY IN PSYCHOLOGY INDUSTRY.

The British Psychological Society,
St Andrews House,
48 Princess Road East,
Leicester,
LE1 7DR.

Tel: 0116 254 9568
Fax: 0116 247 0787
Email: enquiry@bps.org.uk.

Web: http://www.bps.org.uk.

Psychology at School and College

Some schools and colleges do offer GCSE or A Level Psychology. However, if you are keen on studying psychology at university, an A level in Psychology is not normally an essential entrance requirement. Many universities do insist on GCSE maths, though, because statistics and research methods are part of all BPS accredited degree courses.

Psychology at University

Universities offering degree courses in psychology approved by the BPS are listed on the BPS website and at The University of Wales site. Beyond university, the career options listed below demand further, specialist training and experience. Check the BPS website for further details at http://www.bps.org.uk.

Clinical Psychology

Training in clinical psychology usually takes place after students have obtained relevant work experience in clinical psychology. Students then undertake a three-year postgraduate training course.

Counselling Psychology

Counselling psychologists help people cope with difficult life events such as divorce, bereavement and unemployment. There are numerous different approaches to counselling and training requirements vary accordingly. The British Association of Counselling and Psychotherapy offers information at http://www.bac.co.uk.

Educational Psychology

Educational psychology is closely allied to developmental psychology. Educational psychologists work in schools, together with teachers and parents, to enhance children's learning and development, especially in cases of behavioural and learning difficulties. Training involves an initial degree in psychology, a teaching qualification (e.g., the PGCE) and at least 2 years experience of teaching in schools, before starting postgraduate training in educational psychology. (There is no requirement to be a qualified teacher in Scotland).

Forensic Psychology

Forensic psychologists work in the field of criminal and civil justice, providing support to the police, the prison and probation services, the National Health Service and the Social Services. Postgraduate courses in forensic psychology typically require one year of full-time study.

Health Psychology

Health psychologists help people cope better with illness and treatment. They are interested in how people perceive illness and adapt to it, how they interact with health care professionals, and how they cope with pain and different treatment regimes. Postgraduate training typically requires one year of full-time study.

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