Spydertrader's Jack Hershey Equities Journal II

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I had 4 signals today to short:

ANDE @ $32.76 STO: 0 MACD: -.8
MGPI @ $21.47 STO: 17 MACD: -.46
OMNI @ $6.86 STO: 6 MACD: -.12
TIE @ 23.74 STO: 19 MACD: -.37

Two positions worked out, and were sold at a profit before EOD: ANDE and TIE. The other two hit my stop loss, and were closed.

Can someone comment on these trades in as much as their signal validity? Did anyone else trade these today?
 
Quote from cipherscribe:

ANDE @ $32.76 STO: 0 MACD: -.8
MGPI @ $21.47 STO: 17 MACD: -.46
OMNI @ $6.86 STO: 6 MACD: -.12
TIE @ 23.74 STO: 19 MACD: -.37

[...]
Can someone comment on these trades in as much as their signal validity? Did anyone else trade these today?
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Yes, I took ANDE, OMNI and TIE. I couldn't get any shorts on MGPI so I didn't take that trade, but I did get its signal.

The volume was heavy in the early trading, but dried up quickly, so I was out of all positions before noon, taking a wash or small profit in each.

Missed CHAP, unfortunately. That looked like quite the trade if anyone caught it early enough!
 
Quote from foible:

Yes, I took ANDE, OMNI and TIE.
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I appreciate the feedback foible. It gives me confidence to know that I am following the process. Excellent work closing out on the volume drying up.
 
It seems I still haven't mastered JH trading method. I would like to stick with the trading rules as stick to the Bible. But it seems the trading rule need to be combined with technical analysis, e.g. chart, channel, and etc. Some rules need to be observed strictely (e.g. picking stock, unusual volume confirmation, MACD, schocastic), and some maybe need to be observed in a spiritual way (Am I right?). Or, maybe I haven't understood the JH trading rules at all. Here are a few questions I have:

1. Should we ONLY trade stocks in DUList of the "previous trading day"? CMED shouldn't be on the DU list on 22-Sept. Did we trade it for "unusual volume"? It should be sold in this morning per peak-volume trading rule, right?

DATE OPEN CLOSE VOLUME
25-Sep-06 22.25 22.04 804,207
22-Sep-06 19.70 22.01 1,814,300
21-Sep-06 20.12 19.65 366,300
20-Sep-06 20.18 20.09 330,100

2. GROW should be a BUY on Sept -01 per FRV, but should be sold on Sept-02 or morning of Sept-03 per peak volume (I am using today's DU for backward reviewing. Correct me if I am wrong). That would miss the most of the gain of the cycle. I agree every trading system could miss some gain. But is my understanding on the trading rule correct?

DATE OPEN CLOSE VOLUME
25-Sep-06 28.11 27.75 1,341,900
22-Sep-06 30.09 27.82 2,091,200
21-Sep-06 32.70 30.74 959,800
20-Sep-06 32.60 32.45 605,500
19-Sep-06 33.97 32.28 1,258,700
18-Sep-06 33.00 33.37 905,600
15-Sep-06 33.40 32.50 702,700
14-Sep-06 32.71 32.82 654,700
13-Sep-06 30.95 32.88 1,348,200
12-Sep-06 29.96 30.58 761,000
11-Sep-06 31.51 30.07 1,688,000
8-Sep-06 33.92 30.83 5,099,800
7-Sep-06 28.00 28.02 375,100
6-Sep-06 29.55 28.31 381,300
5-Sep-06 27.32 29.16 616,700
1-Sep-06 23.80 26.55 397,600
31-Aug-06 23.68 23.72 58,000

3. XING has not reached DU on 12-Sept (per today's DU). It has unusual volume on 13-Sept. But tt should be sold per peak volume in the morning of 19-Sept. Another "unusual volume" occurs today. Per chart, a new wave seem starting. Per peak volume, one should sell tomorrow morning. Should it be a buy or a sell?

DATE OPEN CLOSE VOLUME
25-Sep-06 13.05 14.00 1,304,607
22-Sep-06 13.21 12.91 609,400
21-Sep-06 13.50 13.28 612,800
20-Sep-06 13.65 13.47 846,200
19-Sep-06 13.02 13.44 1,510,600
18-Sep-06 12.16 12.97 1,419,900
15-Sep-06 12.30 12.03 732,900
14-Sep-06 11.75 12.14 809,400
13-Sep-06 11.08 11.75 1,043,200
12-Sep-06 10.93 11.11 251,600


4. CBEY is in a similar situation of XING. It was in DU list on 08-Sept, but not in 09-Sept's DU list. It reached peak volume on 10-Sept (should it be a buy on that day, and sell on the next day?). It has never reached DU since then, but a new up-trend seems started today. Its volume again break "peak volume" today. Should it be a sell tomorrow?

DATE OPEN CLOSE VOLUME
25-Sep-06 27.20 27.94 294,675
22-Sep-06 26.50 27.05 269,700
21-Sep-06 27.22 26.43 256,700
20-Sep-06 26.85 27.03 260,500
19-Sep-06 27.06 27.55 200,000
18-Sep-06 26.41 26.92 117,500
15-Sep-06 26.81 26.33 206,500
14-Sep-06 26.52 26.48 301,000
13-Sep-06 25.40 26.70 496,200
12-Sep-06 23.33 25.00 531,600
11-Sep-06 22.50 23.48 62,800
8-Sep-06 23.09 22.65 35,700


I am reviewing past price/volume data of FU stocks, and seldom find a stock fall into the ideal pattern, namely DU in day one + FRV in day two + < peak volume in a couple of days with price improvement. Usually a stock reach peak volume in the first wave, and then consolidate for a couple of days with higher volume greater than DU, then the next wave start. Would there be any buying point for the next wave for stocks like XING and CBEY? Or, they should not be traded per JH trading rule?

Thanks if anyone could help.
 
Quote from ulmer:

I am reviewing past price/volume data of FU stocks, and seldom find a stock fall into the ideal pattern, namely DU in day one + FRV in day two + < peak volume in a couple of days with price improvement. Usually a stock reach peak volume in the first wave, and then consolidate for a couple of days with higher volume greater than DU, then the next wave start. Would there be any buying point for the next wave for stocks like XING and CBEY? Or, they should not be traded per JH trading rule?
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It appears as if you have combined two different methodologies into one question. Following the Dry Up ---> FRV -----> Peak Paradigm remains a fundamentally different exercise when compared to buying a Final Universe Stock which 'breaks out' on Unusually High Volume. In addition, the use of Channel Trendlines as a tool to confirm an entry or exit, improves profitability by avoiding buying into a stock as it bounces off the upper trendline.

Jack designed the 'Beginner Methods' in an effort to provide a "jumping off point" for someone to learn how to trade. By easing into the methodology, a new trader could then train their mind (build the neural pathways required) to learn how to trade. If you find your mind lacks clarity with respect to how to trade The Hershey Equities System, then I recommend a thorough review of both Journals.

Take a step back and try to see the entire forest, rather than the individual species of tree.

For a complete breakdown on the steps used for the methods outlined in the first Journal (with some minor changes as outlined throughout Journal Two), visit the Final Page of Journal One.

Good Journey to you.

- Spydertrader
 
Quote from Spydertrader:

I recently received a PM requesting information on a document written by Jack and titled, Three Volumes.doc (or possibly three volumes report.doc). If anyone has a copy of this document, could you please post it to the Journal.

Thank you in advance for your assistance.

- Spydertrader
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three volumes.doc doesn't ring any bell (I'm getting old) however I came across this pdf file splited in 3, start from second post http://www.elitetrader.com/vb/showthread.php?s=&threadid=34558&perpage=6&pagenumber=6
 
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