Spydertrader's Jack Hershey Equities Journal II

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well , reading the charts and volume quotes posted here, I think you entered this trade exactly when you had to enter it.
But it tanked only 20-30 secs later.
So some people, (the lucky ones) missed it, because they were not so fast or because of little difference in data volume, instead some people bought it.

It seems to me , there's nothing wrong with your charts or your execution... as they say " shoot happens". :mad: :p
 
Did anyone play ENER today? I was scared away because of the gap, but it would have been a good one. From some basic observations there seems to be a relationship between volume and gaps, where if the volume is over a certain level and constantly increasing the gaps don't seem to want to fill immediately, but I have done the testing to back that up.

Thanks,

- The New Guy
 
Quote from thenewguy:

Did anyone play ENER today? I was scared away because of the gap, but it would have been a good one. From some basic observations there seems to be a relationship between volume and gaps, where if the volume is over a certain level and constantly increasing the gaps don't seem to want to fill immediately, but I have done the testing to back that up.

Thanks,

- The New Guy
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I did, and so far so good. I measured the open gap at about 0.5%, well below the worry point of 5%+. However, I base it on premarket trades; using the regular open the gap was over 5%.

Doug
 
Quote from dougcs:

I did, and so far so good. I measured the open gap at about 0.5%, well below the worry point of 5%+. However, I base it on premarket trades; using the regular open the gap was over 5%.

Doug
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Yes, that's a great trade, good job! Interesting point about the pre-market prices. What do you use, the first trade after midnight?

Thanks,

- The New Guy

EDIT: I think in the future when price/volume behaves like it did this morning for ENER I'm going to take the trade, regardless of the gap. Sometimes it almost seems like a layup (very rarely however), if the stock is in dry up and exhibits over %100 of DU first thing in the morning and keeps on going. I thought about buying in on the first major pullback, but what I probably should have done is considered the volume rate, and if it was still strong, then buy in, rather than just the price action.
 
Quote from thenewguy:

Yes, that's a great trade, good job! Interesting point about the pre-market prices. What do you use, the first trade after midnight?

Thanks,

- The New Guy

EDIT: I think in the future when price/volume behaves like it did this morning for ENER I'm going to take the trade, regardless of the gap. Sometimes it almost seems like a layup (very rarely however), if the stock is in dry up and exhibits over %100 of DU first thing in the morning and keeps on going. I thought about buying in on the first major pullback, but what I probably should have done is considered the volume rate, and if it was still strong, then buy in, rather than just the price action.
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TNG-thanks for the compliment.

I use Tradestation data and they define the "pre-market" as 0800-0930 am EST, so I'm not taking the first trade after midnite.
The first print for ENER, using TS's definition of premarket was 34.54 x1, so somebody got real lucky as the next few prints took it quickly up to 35.63.

Doug



Doug
 
Quote from dougcs:

TNG-thanks for the compliment.

I use Tradestation data and they define the "pre-market" as 0800-0930 am EST, so I'm not taking the first trade after midnite.
The first print for ENER, using TS's definition of premarket was 34.54 x1, so somebody got real lucky as the next few prints took it quickly up to 35.63.

Doug



Doug
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Wow, I thought I might jinx the ENER trade by commenting on it earlier. So far, so good! Hope you're still in it!

- The New Guy
 
Quote from thenewguy:

Wow, I thought I might jinx the ENER trade by commenting on it earlier. So far, so good! Hope you're still in it!

- The New Guy
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Ya! Sold near the close for 11+% gain, as it reached PV-nice to get as it helps Santa pay for the presents.

Doug
 
Congrats Doug,

I missed that trade this morning. Should have jumped on board but it went up so rapidly and I thought it may be another false breakout so I stayed out. I could only watch the market for the first 30 minutes today.

Still sweating it out on BOOM from 31.70. Looks like BOOM might be a dud this go around.

Gooch87
 
Quote from dougcs:

Ya! Sold near the close for 11+% gain, as it reached PV-nice to get as it helps Santa pay for the presents.

Doug
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Nice trade. It was up so much already by the time I noticed I decided to sit it out. Nice going!

Mike
 
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