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Spydertrader's Jack Hershey Equities Journal II
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SIR along with Float, price, EPS and average volume is available at:Quote from dougcs
One of the extra things I'm doing is watching JH stocks that also have a high short interest ratio (SIR) defined as shares short/float. BOOM has an unusually high SIR, about half its float.
Sometimes these stocks really pop if a short covering rally gets going as the shorts get scared and buy to cover.
We will see how it does today.
Doug
ps-Marty, is this something that your Spyderfilter.jar could calculate ?
http://www.investor.reuters.com/ArticleEntry.aspx?target=/opinion
Look on the menu to the left and select Investing->Ideas & Screening -> Powerscreener. Registration is free and the screener is top notch.
You can creat a custom list of stocks screened for RS and EPS Rank and dump them into an +eps, Float and price screen if you want or you can create an entire screen to cull out Hershey stocks using this screener alone.
-ace
Quote from acesheet:
SIR along with Float, price, EPS and average volume is available at:
http://www.investor.reuters.com/ArticleEntry.aspx?target=/opinion
Look on the menu to the left and select Investing->Ideas & Screening -> Powerscreener. Registration is free and the screener is top notch.
You can creat a custom list of stocks screened for RS and EPS Rank and dump them into an +eps, Float and price screen if you want or you can create an entire screen to cull out Hershey stocks using this screener alone.
-ace
I just looked at it and that is a good screener but they don't really have daily average volume over 65 days. They only have either a monthly average (it is over 3 months) or a daily average over 10 days. I used the Yahoo daily average volume over 3 months in my program which is close enough to have about 65 trading days. It will make a difference in the screening results but probably not dollar results??
Quote from acesheet:
SIR along with Float, price, EPS and average volume is available at:
http://www.investor.reuters.com/ArticleEntry.aspx?target=/opinion
Look on the menu to the left and select Investing->Ideas & Screening -> Powerscreener. Registration is free and the screener is top notch.
You can creat a custom list of stocks screened for RS and EPS Rank and dump them into an +eps, Float and price screen if you want or you can create an entire screen to cull out Hershey stocks using this screener alone.
-ace
Ace,
I agree about this screener, used to be the old Multex screener, is one of the best there is. I use it alot.
Doug
Quote from dougcs:
Spydertrader,
A couple of questions:
{I'm not done reading everything, but getting there. It seems like I keep finding more in what I read and more to read.}
1. I'm not clear why the 200k per day 65 day average volume requirement. I think I've seen references that 100k is good also. And, a reference or 2 that JH chose that level of activity to suit his trading large volumes and needed that type of activity so he would not overly move the market. Has anyone looked at a lower limit?
I think one of the underlying principals to the selection of the universe is trading "thinly traded" stocks (not too thinly though), so they "pop" when buying pressure comes. So, it follows (to me) that a lower average trading volume is consistent with this principal.
2. Has anyone looked at setting DUV at some percentage of "float"? Say, at 1.5% or less of float. Some symbols that I've had on my watch list show:
I'm showing the DUV calculated at WL / float for these:
BOOM 10.0%
NFLX 1.3%
NGPS 1.7%
RATE 0.6%
KNDL 0.7%
VDSI 0.8%
JMDT 1.0%
PTC 0.7%
From this quick look, it does not seem to work but most seem close to 1%.
Doug
Doug, I asked these questions in a previous post and Spyder posted some links on this subject:
http://www.elitetrader.com/vb/showthread.php?s=&postid=897389&highlight=float#post897389
I still haven't found a reason on why we're using these fixed float requirements. However, if the stock has been proven to move in cycles given some specific volume levels as per the Hershey Ranking scan, that should validate the DU calculation based on those same volumes. That is, the volumes read by the scan should be sufficient to move the stock price as they did for the previous cycles.
But then again, why to use any float requirement at all.
Quote from ilganzo:
Doug, I asked these questions in a previous post and Spyder posted some links on this subject:
http://www.elitetrader.com/vb/showthread.php?s=&postid=897389&highlight=float#post897389
I still haven't found a reason on why we're using these fixed float requirements. However, if the stock has been proven to move in cycles given some specific volume levels as per the Hershey Ranking scan, that should validate the DU calculation based on those same volumes. That is, the volumes read by the scan should be sufficient to move the stock price as they did for the previous cycles.
But then again, why to use any float requirement at all.
Thanks.
I'm having trouble accessing the MSN site docs. For some strange reason, when I click on some of them they crash my IE6.0. So as a result I'm not able to read all of them.
I recently got Firefox and will start using it; but this IE problem has prevented me from seeing all the docs.
I think the reason for a low float is to select stocks that tend to pop on buying pressure vs some of the big caps with huge floats that are like supertankers-it takes a lot to change direction where smaller caps are like light weight speed boats, press on the gas and they get up and go like hell. IF my analogy is correct then lower floats should be OK but for some reason were ruled out.
Also, in Jack's last posts he uses 5-30 million float limits while we are using 5-60.
Doug
OK, but the point I was trying to make in the previous post is that the Hershey rank scan already makes sure that the stock price moves, regardless of the float/avg. volume level. If the stock has already gone through 5 moves of 20% or more, then the same volume levels that caused those past moves should be enough to push the stock higher the next time, no matter what the float is.Quote from dougcs:
I think the reason for a low float is to select stocks that tend to pop on buying pressure vs some of the big caps with huge floats that are like supertankers-it takes a lot to change direction where smaller caps are like light weight speed boats, press on the gas and they get up and go like hell. IF my analogy is correct then lower floats should be OK but for some reason were ruled out.
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