Spydertrader's Jack Hershey Equities Journal II

bdolnik · Nov 11, 2005

Quote from martys:

I am trying this breakout. Was there signal days before?

I've had FORD on my list of stocks in DU for the last 3 days, however it has not produced a signal to buy until today.

martys · Nov 11, 2005

Quote from bdolnik:

I entered FORD today also, I jumped the gun a little bit though and entered at 9:44, 200 @ 24.60

Thanks guys. I feel the entry of Hershey is almost like an open range breakout trade since there is a correlation between range and volume. So maybe the volume dry up condition can be a prelude to an ORB trade entry???

yharmon · Nov 11, 2005

I think Spy also focuses on stocks with score of 0 and 1. Ford's score is 5. Hence, it was not a buy signal for me.

Is that correct, Spy?

WilliamV · Nov 11, 2005

Quote from martys:

Thanks guys. I feel the entry of Hershey is almost like an open range breakout trade since there is a correlation between range and volume. So maybe the volume dry up condition can be a prelude to an ORB trade entry???

In FORD trade as well with one leg at 24.60 and the other at 24.47 since prorata volume was exceedingly high.

ORB Entry signal as well at 24.46 where range has been contracting the last 3 days. Only about 60% of the 5 day avg range, giving this buffalo plenty of room to roam. Breaking out a little to the upside now at 12:14:29.

Good trading everyone!

kming · Nov 11, 2005

took the trade too, but exited just now - as today's volume will be under FRV. SpyderTrader, is this the right way of reasoning?

Thanks.
-kming-

martys · Nov 11, 2005

Got out even too. Although I think the market is up and the stock is holding at the upper end of the daily bar, I don't want to second guess the system if I want to trade it for the long haul without losing the sanity.

Spydertrader · Nov 11, 2005

Quote from martys:

The method cheat sheet does not mention the cut-off time. Is it 11:00 am or 11:30 am?

Jack Hershey has used both 11:00 AM and 11:30 AM as his cutoff. In the beginning of the old Journal, I used 11:00 AM as my cutoff time. I now use 11:30 AM as it makes the pro-rata volume calculations easier.

Quote from yharmon:

I think Spy also focuses on stocks with score of 0 and 1. Ford's score is 5. Hence, it was not a buy signal for me.

While I do focus on stocks with a score of zero or one, I do not ignore signals generated for stocks with other scores. I trade stocks, with scores other than zero or one, while exercising a higher level of caution.

Quote from kming:

I took the trade too, but exited just now - as today's volume will be under FRV.

I almost always exit when a stock fails to reach FRV by end of day. However, with many banks closed today due to Veteran's Day Holiday, some traders may have chosen to hold over the weekend. After taking into account possible low volume levels resulting from the 'professionals' taking all or part of today as a Holiday, one can see how the decision to hold over the weekend follows the spirit of the FRV rule (holding while volume and price continue to increase), but not the letter of the rule (sell of FRV not reached by EOD). Under these circumstances, either course of action (sell or hold) appears reasonable.

Again, I cannot place enough emphasis on the importance of reviewing the old journal, and especially, the background material linked in the second post.

Good Trading to you all.

- Spydertrader

gooch87 · Nov 11, 2005

I adjusted my final universe so that it is the same as Spydertraders.

Spydertrader, UEPS keeps coming up in my scans. Do you think it should be added to the final universe?

Here is my dryup list for Monday,

FORD GMXR KNDL BOOM

G87

dougcs · Nov 12, 2005

Quote from Spydertrader:

Jack Hershey has used both 11:00 AM and 11:30 AM as his cutoff. In the beginning of the old Journal, I used 11:00 AM as my cutoff time. I now use 11:30 AM as it makes the pro-rata volume calculations easier.

While I do focus on stocks with a score of zero or one, I do not ignore signals generated for stocks with other scores. I trade stocks, with scores other than zero or one, while exercising a higher level of caution.

I almost always exit when a stock fails to reach FRV by end of day. However, with many banks closed today due to Veteran's Day Holiday, some traders may have chosen to hold over the weekend. After taking into account possible low volume levels resulting from the 'professionals' taking all or part of today as a Holiday, one can see how the decision to hold over the weekend follows the spirit of the FRV rule (holding while volume and price continue to increase), but not the letter of the rule (sell of FRV not reached by EOD). Under these circumstances, either course of action (sell or hold) appears reasonable.

Again, I cannot place enough emphasis on the importance of reviewing the old journal, and especially, the background material linked in the second post.

Good Trading to you all.

- Spydertrader

Spyder,

I about half through your first journal and starting to read the "background" material.

I noticed in the "background":

http://groups.msn.com/JackHersheysStrategies/general.msnw?action=get_threads

that a lot of the threads have deleted messages. I'm not sure which is more important the threads or the "documents" I hope it is the docs because of the many missing entries in the threads.

I'm waiting for my approval to become a member so I've not been allowed access to the docs.

Thanks again for keeping this informative journal.

Ds

Spydertrader · Nov 12, 2005

Quote from gooch87:

UEPS keeps coming up in my scans. Do you think it should be added to the final universe?

UEPS appears to qualify as a candidate. However, the current symbol used by the company (UEPS) only appears to have a few months of data available. When this happens, I normally set the symbol aside until the symbol has 127 days worth of data. Jack prefers several years of data. Unfortunately, not all data providers include previous data from a symbol change, exchange change or merger / acquisition. I see no reason not to include it it your Universe.

- Spydertrader