Spydertrader's Jack Hershey Equities Journal II

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Quote from dougcs:

You mentioned FORD and JMDT's action today. I did not have them on my list of stocks in DU; did you or they on another list you are watching?
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I just used them as two examples of stocks which have plenty of volume the day before a Holiday. I did not have either on a Watch List.

- Spydertrader
 
I'm trying to keep my hands off VDSI for now and see how it reacts after 1:00. The stock FRV level is 28% at 11:55. Our dude might be a little late on the track...
 
Quote from martys:

Happy Thanksgiving and Warm Pumpkin Pie with Cool Whipped Cream...
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pie.jpg

Slurp...
 

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On 11/11/05 SpyderTrader said:

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.
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I've been away for a couple of weeks for business so I had to suspend my papertrading activities. I wanted to reply about the above post.

Several stocks during my papertrading broke out a day after I traded them. I sold them prior to the end of the day because they did not reach FRV. I reasoned that because of Jack's PVAD theory that it would make sense to hold the stock at least another day if it hadn't done anything wrong. So one of my modified rules for Jack Hershey trading is to hold an extra day to wait for FRV as long as the stock 1) advanced in price by EOD and 2) advanced in volume with respect to the prior day by EOD. This seems to follow the supply and demand idea. Stock rising on more demand.

If it doesn't reach FRV by the end of the second day or triggers some other sell rule before the end of the 2nd day then you sell it.

I call it the 2nd Chance Rule. Remember to only use this rule if the stock has advanced on more volume than the prior day. All the other setup rules remain the same: >80 Stoch, +MACD Hist, volume breakout before 11:00, +price delta from prior day and all the fundamental screening (eps, float, ave volume, price levels, RS and EPS rank).

-ace
 
Got in at the same price, but at 2:45 VDSI's volume is so small that very likely wouldn't reach FRV. So exited. These days we had too many false entries...

-kming-

Quote from Spydertrader:

I'm right there with you. Unfortunately, the market hasn't continued to move price higher yet on this trade. I plan to remain patient.

- Spydertrader
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Hi ace,

I hate to say this because I know I am gonna get stoned. I think JH entry is excellent but the rest of the stuff sounds a bit more like stuff coming out of a technical analysis book. I assure you my opinion worth nothing but I just don't believe price has to advance with volume at all (although it would be nice). The TA books would say high volume confirms a break out. My theory about what REALLY happens is THE SAME GUY plans to buy more!! The question is whether the price action or board market will deter his plan or not.

:confused:
 
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