Looks like Wealth Lab's web site data finally caught up.
Spydertrader's Jack Hershey Equities Journal II
- Thread starter Spydertrader
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ARD's not in dry-up today, nor is it a Bruno R candidate.
No. You correctly observed the Hershey Phenomenon taking place this morning. However, we do not yet know if this signal will turn out to be profitable, or simply, another False (Failed) Break Out (FBO) in the making. Personally, I would have preferred a more robust increase in volume (read: stronger signal), but time will tell. As I really do not like trading on the AMEX, I did not take this signal.
For a visual representation of the Dry Up Concept, see the attached chart. We see Price sitting in a flat range over the last few days (red circle) accompanied by relatively low (and flat) volume levels (pink line). Once price broke above the 20 SMA (thick blue line) and above the intermediate term down channel (thin orange lines and orange arrow), we had our signal to enter long. Notice also the continued attempts by price to remain within the short term up channel (thin green lines).
- Spydertrader
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1061323>
I had ARD circled on my list of stocks to watch this morning as a possible DU candidate, not because of the actual volume numbers, but for the reasons outlined in my above post. ARD appeared to follow the 'spirit' of the Dry Up rule, but not the 'letter of the law' so to speak.
- Spydertrader
Well, for the time being I'm sticking with the letter of the law, as it seems safer for me!
Absolutely nothing wrong with your course of action here.
- Spydertrader
Nah. While summer traditionally brings lowered volatility, Hershey stocks traditionally continue to provide profits year round. Based on the results from previous summers, I anticipate continued performance in the coming summer months.
- Spydertrader
No trades for me today. Anybody else grab onto a trade (good or bad)?
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