In terms of trailing the 5% stop loss, do you favor 5% below the day's high, or close?
Spydertrader's Jack Hershey Equities Journal II
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High of The Day.
- Spydertrader
I do not need to wonder how the system operates in a falling market. I have traded the system during both rising and declining market environments. As I have discussed several times in Journal One, The Jack Hershey Equities Method operates mostly independent of overall market direction. The system generates long signals in declining markets, as well as, short signals in rising markets. In my experience, the frequency and strength of signals to go long improves in a rising market environment, just as the frequency and strength of short signals occurs in a declining market environment. Simply by reviewing the posts in Journal Two, you can see the same experience of others trading this system. Many have mentioned how they had extremely profitable Hershey Equities trades on days where the overall market tanked. In an effort to share both sides of the coin, DKM (a contributor to Journal One) traded a variant of The Hershey Equities method during the Bear market of 2000. According to his results (posted on one of the MSN web sites), DKM did not experience success. I encourage you to review the posts in Journals One & Two in an effort to arrive at your own conclusions.
- Spydertrader
VPHM provides another great example of why we do not hold during an earnings report.
- Spydertrader
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=995263>
- Spydertrader
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=995263>
LOL, that VPHM got nasty.
Spydertrader, I noticed that today HANS showed up as being in dry up. I'm already in HANS from last week when it was in dry up before. Would this be an opportunity to add another position for HANS if it broke out again? Or do we just sit tight with the position we already have?
Spydertrader, I noticed that today HANS showed up as being in dry up. I'm already in HANS from last week when it was in dry up before. Would this be an opportunity to add another position for HANS if it broke out again? Or do we just sit tight with the position we already have?
long SIRF? Any body? Any new trade you entered today?
HANS is a tricky one. In Journal One, I used to refer to HANS as an 'anti-hershey' equity because HANS would often run up on low volume and fall drastically on high volume. With many major players having their hands in HANS now, the stock remains one of the more 'well known' Hershey Equities (in a similar vein to TASR months back). As a result of its high profile, HANS often shows extreme volatility. For these reasons, what normally might be an excellent place to add on shares (a second 'breakout in the run') invites caution when dealing with HANS. I look at HANS as the exception which proves the rule, but the wild swings can be brutal.
P.S. VPHM continues to drop.
- Spydertrader
I missed this stock twice this morning when i tried to get cute and finesse a better entry point. I haven't been happy about it all morning. However, as fast as SIRF ran up in price, it now appears to be running just as fast in the opposite direction. Sometimes, its better to be lucky than good.
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