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Peace Bridge Just Before Sunrise

Peace Bridge Just Before Sunrise

I arrived at Calgary’s Peace Bridge on Sunday, July 19, 2015 just before sunrise and shot this photograph. The cool morning tones with just a hint of pink sky in the background, along with almost even lighting, creates an interesting photograph.

For those who are not aware, the Peace Bridge is a pedestrian bridge that crosses the Bow River in Calgary, Alberta. Santiago Calatrava is the architect who designed the bridge. Because of its costs and delays, it was a controversial project. Despite its initial issues, I like its striking design.

Although I have been busy, I wanted to share with you this latest photograph.


Nat Christie Centre – Alberta Ballet

Nat Christie Centre -  Alberta Ballet

On Thursday, June 25, 2015 I took a photograph of the Nat Christie Centre, current home of the Alberta Ballet.

I have wanted to take a photograph of this historic building for some time. One of the challenges, however, is that it faces north, which at Calgary's latitude of 51 degrees means that the sun rarely kisses the front of the building. June 25 is very near the summer equinox, when the sun is at its furthest northern point. I was able to capture this photograph during the late evening at very nearly 8 p.m. when the sun was low on the horizon, at about 15 degrees. I like how the sun casts warm shadows across the building.

I recently attended an Alberta ballet lighting presentation in the Nat Christie Centre. One interesting thing that struck me was that the dance studios are warmer than typical room temperatures. The reason for heated studios is to keep the dancers’ muscles warm, thereby reducing injuries.

The Nat Christie Center itself has an interesting history. Constructed in 1905, the building initially served as a parish hall for St. Mary’s Roman Catholic Church, including a 500-seat theater used for various purposes by the community. Later, in 1911, the Canadian Northern Railway bought the building and surrounding property. The facility continued to serve as a train station until 1971. Then, in 1979 the city of Calgary purchased the train station, and it was designated a provincial historical building. Five years later, with funding from the Nat Christie Foundation, Alberta Ballet became its latest and current resident. You can read a more complete description at the Collections Canada Alberta Arts Heritage website.


This past weekend, Rachel Notley, leader of the New Democratic Party, was sworn in as premier of Alberta.

Because the last few premiers have not been good, I had hoped that Jim Prentice would be our next elected premier, and that he would be able to make many improvements. Prior to the campaign, however, oil prices crashed and Albertans became grumpy, and, during the campaign, he made a few but critical political stumbles. That and because people were hungry for change, he was defeated.

So here we are with a left leaning leader. Now, many Albertans are overjoyed while many others are fearful. For those that are overjoyed that their left leaning voices will finally be heard and acted upon, you're in for disappointment. While I expect your voices will be heard, the reality of low oil prices will not allow the NDP to enact many of its desired changes. And, for those that are fearful, relax. It won't be as bad as you fear. The NDP will realize that many Albertans did not endorse their platform, but rather voted for change. So it will have to adapt to the needs and wants of Albertans while operating within Alberta's political and economic constraints. That will not be easy.

Because of the economic realities, the next four years are likely to be challenging. It wouldn't have mattered which party assumed power. Having a new party with a new leader isn't such a bad idea, though. Notley can review prior government decisions and actions to make improvements where possible. That's a good thing.

The Progressive Conservative Party can regroup and assess its errors. With this defeat, some of the arrogance and feelings of entitlement should be diminished. Moreover, it's a good wake-up call to the corporate sector that not all Albertans share their viewpoints.

The next four years will prove interesting. I wish Premier Rachel Notley well as she launches into her new role. While her job won't be easy, I am positive that it will be interesting.

For another viewpoint, Ian Austen of The New York Times wrote, After a Political Reversal in Alberta, ‘Anything Seems Possible’. Please note, a subscription to The New York Times might be required.


Keeping Busy

This is just a short post to say that I have been keeping busy, though I don't have much to write about. As mentioned in my prior article, I am still helping my friend Dan Margulis with his book. We are getting close to the end of the project, so I am excited to see his finished product. And, I have been busy bashing away on a few personal projects.

With the summer fast approaching, I hope to get outside more and engage in more photography. Then, I will have some photographs to share with you.

So that's it for now.


With A Little Help From My Friends

New Beginnings - Bow Falls

I took the above picture near Bow Falls, within the town of Banff, in Banff National Park, Alberta. And below, is the same picture but straight out of the camera. As you can see, I enhanced the colors. You can click on either photo to be taken to a larger version at Flickr.

New Beginnings - Bow Falls

By being a beta-reader, I am helping Dan Margulis, a friend and a best-selling author, write a new book on Photoshop. I, along with 13 others, am proof-reading his text, making sure that everything flows, the discussion and examples can be readily followed, and, we hope, there are no typos.

For those that are unfamiliar with Dan, he has already written several highly acclaimed Photoshop books, including: Professional Photoshop: The Classic Guide to Color Correction (5th Edition); Photoshop LAB Color: The Canyon Conundrum and Other Adventures in the Most Powerful Colorspace; and Modern Photoshop Color Workflow The Quartertone Quandary, the PPW, and Other Ideas for Speedy Image Enhancement. We are working on a follow-up or revised edition to his Canyon Conundrum book.

Although I am strictly an amateur photographer who enjoys working with Photoshop, I have read Margulis's books, which many readers consider difficult but worthwhile, and have taken two of his courses. That said, to become extremely good at photography and Photoshop, one needs to gain considerable experience with each. I am improving, slowly but surely. Every time I take a new photograph and process it through Photoshop, I learn something new.

To keep learning, I am observant and willing to experiment. As mentioned in my photography articles, I compare my results to what I had envisioned. That usually helps to spot mistakes quickly. And, I am willing to try different techniques or methods, both in photography and Photoshop.

Returning to Dan's book, the beta-reading exercise is a challenging but rewarding endeavor. The challenge is to understand everything and that takes some effort. I have had to read some parts two or three times. Because of my limited experience and proficiency, I might be working harder than others in our group. That said, we each fill a certain demographic of Dan's expected readership, so I am helping to fulfill the serious amateur role. Moreover, each of us works independently to provide feedback. As I have commented to others, being a beta-reader is much like being a student taking a graduate level course—it takes a lot of hard work and effort. The great news is that it is rewarding because I have the opportunity to gain more insights and experience.

As you've seen from a prior post, on February 23, I went out to Banff to take photographs. My favorite photograph from that day is the one at the top of this article. The most difficult challenge I had in retouching it in Photoshop was the blue shadows on the ice immediately in front of the camera. I deliberately brought out color variation from the trees and the rocks, but that move also intensified the blue shadow, so much so that it looked garish in my first iteration. One of the unfortunate aspects of working for a while in Photoshop is that you become inured to overly strong colors. Soon, they begin to look proper and normal. It's only when you step away for a while or someone else comments on your photograph that you begin to see the problem.

In this case, I was unsure how to treat the overly blue shadow. Dan has an online Color Theory Group where other enthusiasts can exchange information. I posted my dilemma and asked for help. Another enthusiast Les De Moss came to my rescue. He just happens to be a former beta-reader for Dan's books, just happens to own a color lab, and just happens to live in the Rockies. He provided a sample file where he showed how to split the file into parts and treat each separately. So everything but the ice was one part, which I already had completed, and the ice with the blue shadows was the second part. Once I knew how to treat the ice, I didn't take long to finish both parts and recombine them.

All that said, I am happy with my final result. You, of course, will have to form your own opinion.

Every exercise increases my learning and experience. In this instance, I learned how to work with blue shadows on white snow and how to separate and recombine parts of a photograph. The other positive aspect of this type of learning experience is helping and receiving help from others—a little help from my friends.


Winter Photography

Solitude - Lake Louise - Banff National Park

This past Monday I went to the Rocky Mountains to take photographs at Lake Louise and some other areas within Banff. In the past, I have engaged in photography during warm weather only.

I learned that winter photography is less forgiving than during the summer. One obvious challenge is the colder temperatures. I took my gloves off and used my exposed fingers to work the camera. After a few minutes, my fingers were surprisingly cold. Another challenge is that the sun hovers low over the horizon during the winter. So, catching the ideal time to photograph an area becomes more difficult, especially in the mountains where the sun has to rise over them.

To create great photographs, a photographer needs to be very picky about the specific time of day within a particular season and weather conditions. In the summer, I typically visit a few locations and get okay photographs. In the winter, that becomes more difficult. Although I went to great locations, the lighting conditions simply did not work. I recall one instance in the early afternoon where the sun was low on the horizon and almost shining directly into the lens. And, in another, the long shadows over the valley detracted from the overall view. So if I go back during the winter or early spring, I will need to visit these locations at better times.

Every photography trip adds to my experience and knowledge. I always come away with some added insight about how I want to approach my next trip. I find photography is much like writing—it takes an inordinate amount of practice to become good.


Have Oil Prices Bottomed?

Have oil prices hit bottom? While I don't know the answer, I have a hunch that we might have bottomed or might be close to bottoming. In a Financial Times article Opec chief says oil prices could soon rebound (subscription might be required) on January 26, 2015, Abdalla El-Badri indicated that prices might have bottomed.

Oil prices may have hit a floor and could soon rebound, said the secretary-general of Opec, the oil producing cartel, on Monday.

After hovering in the $45-$50 a barrel range, Abdalla El-Badri said, maybe prices have reached a bottom.

Speaking on the sidelines of a Chatham House conference in London, Mr El-Badri said to the Financial Times: How long will it last? I don’t know … but I am sure the price will rebound.

In a New York Times article Oil Prices Surge 8% After Long Slide Down (subscription might be required), there were a few factors contributing to a sudden rise in prices this past Friday. The decreased rig count, however, seems to suggest that oil production will decrease and that a bottom should not be too far away.

The rally came shortly after the Baker Hughes service company reported that the nation’s rig count had dropped by 94, or 7 percent, in the last week, the largest single-week drop since the late 1980s. That leaves 1,223 rigs in operation, the lowest number in three years, and energy executives say another 300 rigs could be decommissioned in the next few months as service contracts expire.

A drop in oil production normally happens several months after rigs are decommissioned, but the Baker Hughes report was another sign that oil companies were responding fast to the global oil glut by cutting their spending.

My gut says the oil price has been artificially low, and I think this is a logical correction from that overreaction, said Joel Moser, the chief executive at Aquamarine Investment Partners. It would not surprise me at all that this may reflect a bottom.

While I am not positive that oil prices have bottomed, I think we are at least close. Perhaps oil prices touch the high $30s. But I doubt that oil prices could stay in the $30s for an extended period of more than two months. I believe the pain being endured by the oil industry is intense, as evidenced by the dropping rig count. Thus, I expect that oil prices have either bottomed or will soon bottom.


2015 Stock Market Outlook

Reports that say that something hasn't happened are always interesting to me, because as we know, there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns—the ones we don't know we don't know. And if one looks throughout the history of our country and other free countries, it is the latter category that tend to be the difficult ones.

As we prepare to enter 2015, financial pundits aplenty will be giving you their forecasts for the upcoming year. People have a tendency to overestimate their confidence when working with ambiguity or uncertainty.

Rather than anchor myself to any pundit, I want to look at what the market is expressing through options. On Friday, December 27, 2014, the SPX closed at 2088.77. Looking at the SPX December 2015 Options (they expire on January 14, 2016) and using thinkorswim’s platform for options, I note the following:

  • about a 90% probability that SPX closes above 1400;
  • about a 90% probability that SPX closes below 2400.

Alternatively, we can state that there is an 80% (=100 – 10 – 10) probability that SPX is between 1400 and 2400. We note the skew to the downside.

Now, let's look at 80%:

  • about a 80% probability that SPX closes above 1650;
  • about a 80% probability that SPX closes below 2300.

Alternatively, we can state that there is a 60% (=100 – 20 – 20) probability that SPX is between 1650 and 2300. Note again the skew to the downside.

Incidentally, the approximate volatility across different strikes for next December’s SPX options is about 20.4%.

Again, these options expire on a Thursday on January 14, 2016. While this time period is slightly beyond yearend, it's close enough for government work.

Looking at the first series of numbers, we note that low value of 1400 is about 67% of today's value and the high value of 2400 is about 15% greater than today's value. Looking at the next series of numbers, that low value of 1650 is about 79% of today's value and the high value of 2300 is about 10% greater than today's value. The downward skew is clearly evident.

If these numbers seem way out there—way too far to even be considered—one can always sell the puts or calls and pocket the risk-free money. Me, nothing surprises me anymore, so I don’t consider any potential profits to be risk-free. Put differently, there is no risk-free money. While these values might seem far away from today's values, there can always be surprises that warrant lower or higher values.

How many of us predicted some of today's geopolitical concerns or the plummet in oil prices? The unknown unknowns can and will surprise us.

How accurate or reliable are these option generated percentages? These percentages are simply based on an option's pricing model. As prices move throughout the year, the values will change. At present, however, these values represent the market's view. That view will change. If you disagree, you can always take the other side. But I do find looking at an option pricing model's values helpful because it reminds me how much volatility and uncertainty exists. It's too easy to get lulled into thinking into a pessimistic or rosy forecast.

So when you hear or read about some pundit providing a rosy forecast, think back to our exercise. How many pundits are expressing that the market could have a significant retracement? My guess is that most pundits are going to express an opinion of a market rise of somewhere between five and 10%, largely because we've enjoyed two strong years. Yet, from the options model's values we noted the skew to the downside.

The key point from this discussion is to keep an open mind to next year’s potential outcomes.


Where Are Oil Prices Headed?

I have no clue where oil prices are headed. Like everyone else, I have been confounded by recent developments.

Leading up to the November 27 OPEC meeting, I expected that OPEC would not cut its production to support higher prices. I got that part correct. I thought, however, with the recent drop or fall in oil prices that most of the damage had already occurred. I did not anticipate a precipitous further drop in price following the OPEC meeting on Thursday and Friday.

I have been reading everything I can in an attempt to anticipate future developments. After all my reading, I have come to believe that the near future is highly uncertain. Some forecasters seem to suggest that we have likely already overreacted. While others, including Murray Edwards of Canadian Natural Resources who stated in a Financial Post article Canadian Natural Resources chairman sees oil touching US$30 a barrel, believe that oil prices might fall as low as US$30 per barrel.

My only expectation is that the next few months will be unsettling times for the oil industry. Eventually, oil prices will find a new normal and the industry will adapt. I further expect that there will be changes in Alberta and in Calgary, more specifically, with decreased oil revenues in the short term. Looking further afield, watch Venezuela. It was encountering severe stresses prior to the collapse in oil prices. Unfortunately this recent change might hasten further adverse changes.

The year 2015 promises to be one of change for the oil industry.


Photography at Lake Louise

Early October Morning at Lake Louise

On October 27, 2014 I went to photograph Lake Louise in Banff, Alberta. While I have been there countless times, I am always hoping to capture a better image than I have before.

I arrived early in the morning, before sunrise, and the temperature was near 0C or 32F. At about 8:15 a.m., the sun finally began to appear over the mountains. After I captured this photograph, I waited for a while longer hoping to get better or more even light. When I felt that was not likely to happen anytime soon, I headed toward the other end of the lake, closer to the base of the glacier.

When looking back toward Chateau Lake Louise, the Chateau was partially in shadow. Consulting apps on my iPhone, I knew that the sun would not swing around for a couple more hours. So, I headed up to the top of Beehive to capture my next photograph looking down at the Chateau.

Château Lake Louise

I typically carry too much stuff. In this instance, I carried my camera gear, including my tripod and its case. I felt like a pack mule going up the mountain. By the time I finally reached the top, I was exhausted. A key lesson when hiking in the mountains is to keep your stuff to an absolute minimum.

After capturing my shot from the top of Beehive, I returned the same way I came so that I could take my photograph of the Chateau from the end of the lake near the base of the glacier. On my way down, I noticed gathering clouds above. When I initially got myself into position for my final photograph, the Chateau was hidden in shadow. So I waited for a few minutes for the sun to move from behind the clouds and light up the Chateau.

Château Lake Louise

Behind the Chateau is the Lake Louise Ski Resort. Although it appears to be located directly behind the Chateau, it is actually across a valley through which the Trans-Canada highway is routed. The base for the ski runs is nearly 5 kilometers or 3 miles behind the Chateau.

Looking at these photographs, you'll notice that the color of the lake changes considerably. Although I am sure that there is some scientific explanation as to why the color varies from photograph to photograph, I don't know what it is. I know that lakes in the Rockies usually have a turquoise color because of the dissolved rock silt from glaciers. In the last photograph, however, the color is closer to a traditional blue lake color. I have a hunch that photographing from behind the sun on a cloudy day affected its color.

Here's a link to a photograph shot by my Flickr friend Bernie. You'll note that he is even higher up the mountain than I was, and from his photograph, you can see Lake Louise and Lake Agnes. Notice the difference in color between the two lakes. And, from Bernie's photograph, you can see Chateau Lake Louise, the valley, and the ski trails.

In reviewing these photographs, I know there is room for improvement. When I get home and review my pictures, I compare what I recall seeing in my mind to what I see on the computer screen. It's a tough challenge, because the immense grandeur of Banff is difficult to capture. Yet, it's a valuable exercise because I discover where my photographs fall short. Sometimes it is something as simple as lighting. That can only be fixed by being at a location at a different time, or a different time in a different season. Other times, I see that my lens selection is poor. Perhaps a wider or narrower lens would be more appropriate. Perhaps some photographs would be better captured from a different location or angle. And at other times, Mother Nature wasn't cooperating. In the last photograph, for example, the water was too rough. In that instance, it simply means that I have to try it again on some other day. Even with all the shortcomings, the trip was a valuable exercise because it is only through experience that one learns to become better.