Spydertrader's Jack Hershey Equities Journal II
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Aw goddammit. Do we want this method to get "Cramerized"? I hope you're kidding Jack!
After a few days without any signals, blammo, TSCM hits LBDU in the first 5 minutes of trading! Something about the 50,000 share block print isn't filling my heart with confidence (especially since LBDU is only 70,000 
)
I had this problem earlier on another stock, so maybe I'll ask the group. I understood that we want to be cautious of these large prints because a single trade doesn't make a trend. I took that to mean we should mentally subtract it from the volume traded and proceed as normal (in which case TSCM is rapidly coming up on LBDU, for the second time). Other posters have said they would avoid this scenario because other traders would be attracted to the stock just because of the surge in volume and it won't be sustainable.
Spydertrader and others, what do you think?
Another question about trend lines related to TSCM. On the 30 min chart, TSCM looks to be in a down-sloping channel, and is trading near the top, but on the daily chart, it looks like it has a lot of room to move. The 30 min chart is showing stochastics (%K) at 100 and the MACD histogram is slightly positive. The daily stoch & MACD indicators are showing a good setup for a 'Bruno R' High Noon - declining volume, fast stoch crossing up through 50, slow stoch moving up after a sharp drop, MACD negative but about to cross up into positive.
So, according to the indicators, this looks like a buy, according to the 30 min chart trendlines, this looks like a pass, and the daily chart shows it as a buy.
Do you have any preferred way to deal with conflicting signals?
thanks for your help, all.
)I had this problem earlier on another stock, so maybe I'll ask the group. I understood that we want to be cautious of these large prints because a single trade doesn't make a trend. I took that to mean we should mentally subtract it from the volume traded and proceed as normal (in which case TSCM is rapidly coming up on LBDU, for the second time). Other posters have said they would avoid this scenario because other traders would be attracted to the stock just because of the surge in volume and it won't be sustainable.
Spydertrader and others, what do you think?
Another question about trend lines related to TSCM. On the 30 min chart, TSCM looks to be in a down-sloping channel, and is trading near the top, but on the daily chart, it looks like it has a lot of room to move. The 30 min chart is showing stochastics (%K) at 100 and the MACD histogram is slightly positive. The daily stoch & MACD indicators are showing a good setup for a 'Bruno R' High Noon - declining volume, fast stoch crossing up through 50, slow stoch moving up after a sharp drop, MACD negative but about to cross up into positive.
So, according to the indicators, this looks like a buy, according to the 30 min chart trendlines, this looks like a pass, and the daily chart shows it as a buy.
Do you have any preferred way to deal with conflicting signals?
thanks for your help, all.
Quote from foible:
Something about the 50,000 share block print isn't filling my heart with confidence (especially since LBDU is only 70,000
This is the same reason I passed on it. However I see that PWEI signalled around 9:30 AM while I was away from my desk. By the time I got back, around 10:15 AM the "planets" were still aligned so I made the trade, although I feel a little late to the game. I'm traveling today so I placed a stop with my broker at -2% of the position.
I just jumped in PWEI at 27.55. Lets see what happens.
I'm in TSCM at 27.50 and PWEI at 11.04
Best signals in weeks. I agree about concern with the block trades, but nonetheless there was follow-through in volume.
Best signals in weeks. I agree about concern with the block trades, but nonetheless there was follow-through in volume.
I'm in PWEI at 27.45, and staying out of TSCM. PWEI has shown some follow-through volume, but I'm not so sure about TSCM - there are three block prints of 50,000. Staggered through the day, true, but it still looks like one buyer.
Going to keep a close watch on PWEI to see what it does if it approaches 27.75 again.
<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1084078"/>
Going to keep a close watch on PWEI to see what it does if it approaches 27.75 again.
<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1084078"/>
You got a much better fill than I did in PWEI
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