Spydertrader's Jack Hershey Equities Journal

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2005-07-05, Tuesday - Update

We enjoyed a very busy day today as our system generated four trades for us to monitor throughout the afternoon.

We experienced a False Breakout (FBO) and DCAI triggered our "First Day" 2% stop early in the afternoon. This trade provided us a loss of .45 cents per share or $450 USD.

Neither UBET nor ENER had an actual volume exceed FRV levels by EOD. As a result, I sold all shares of both equities just before the closing bell.

I sold 1000 shares of ENER at the $23.07 price point. This intraday trade yielded a gross profit of .07 per share or $70 USD

In addition, I sold all 1300 shares of UBET receiving a fill price of $5.55 USD. This intraday trade yielded a gross profitof .24 per share or $312 USD.

Actual volume for TRGL exceeded FRV levels by EOD. As a result, I continue to hold all shares of TRGL until at least tomorrow. TRGL currently has appreciated in price by $1.21 per share over our entry.

- Spydertrader
 
Spyder excellent journal. I have been following it for about two months now and have read all I can find regarding this methodology. It is making a tremendous amount of sense to me as a trading strategy. My question is this. In the middle of this journal you were shorting hershey stocks if they met a certain criteria. I believe negative price move stoch below 0.0 and MACD below 20 are you still shorting those and not reporting them being this is a long strategy or have you stopped shorting the method completely? It seemed like it was working for you. Thanks and keep up the good work on the journal.
 
Quote from jerry2005:

Spyder excellent journal. I have been following it for about two months now and have read all I can find regarding this methodology. It is making a tremendous amount of sense to me as a trading strategy. My question is this. In the middle of this journal you were shorting hershey stocks if they met a certain criteria. I believe negative price move stoch below 0.0 and MACD below 20 are you still shorting those and not reporting them being this is a long strategy or have you stopped shorting the method completely? It seemed like it was working for you. Thanks and keep up the good work on the journal.
More...

Thank you for the kind words with respect to the Journal. I appreciate the effort everyone has put into the contributions shared throughout the many pages. Yes, I continue to employ "shorting" Hershey Equities on occasion, but only in very specific circumstances. I have resisted posting the majority of my short trades as the methodology for shorting did not come from Jack Hershey. He has always placed a great deal of emphasis on trading his system from the long side. Second, with so many new traders (to trading in general and Jack Hershey's Methods in specific) reading the Journal, I did not want to give the impression that shorting was in any way easy. One should fully understand the system (ANY system) from the long side before venturing into shorting stocks.

The specific set of circumstances to which I referred occur as follows. First, we monitor our stocks finding themselves "In Dry Up" from the night before. We then look for actual volume to exceed 25% pro-rata volume (25% of the Average Dry Up Volume) before 10:00 AM. Naturally, we want to see a declining price at this point. Our confirming indicators need to be negative (MACD) and below 20 (The Stochastic Indicator). Lastly, We look to exit if A. We reach our goal of 10% or B. We reach EOD. I have never held a Hershey Equity Trade short overnight.

I need to reiterate the fact that the VAST majority of Jack Hershey's posts indicate using his system to trade from the long side only. I strongly recommend continuing to trade from the long side until fully mastered before venturing into shorting Hershey Equities.

I have attached a copy of a USENET discussion occurring several years ago with Jack Hershey regarding the possibility of using his system to short stocks.

I hope you find the above information useful.

- Spydertrader
 

Attachments

2005-07-06, Wednesday - Lists

Hershey Wealth-Lab Chartscript Culling Methodology
Hershey Chartscript Scans / Qcharts Culling / Stocktables.com Sort

Hot List

FORD MCRI

Dry Up Stocks

CKCM DCAI MCRI MFLX

Hot List Stocks Scores

FORD - 7
MCRI - 7

Dry Up Stocks Scores

CKCM - 5
DCAI - 7
MCRI - 7
MFLX - 7

Keep an Eye on These Stocks

CMT (Attached)

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=783325>
 

Attachments

Spyder excellent journal. I have been following it for about two months now and have read all I can find regarding this methodology. It is making a tremendous amount of sense to me as a trading strategy. My question is this. In the middle of this journal you were shorting hershey stocks if they met a certain criteria. I believe negative price move stoch below 0.0 and MACD below 20 are you still shorting those and not reporting them being this is a long strategy or have you stopped shorting the method completely? It seemed like it was working for you. Thanks and keep up the good work on the journal.
 
2005-07-06, Wednesday - TRGL Update

After the nice little gap up this morning, I sold all shares of TRGL at the $27.40 price point. This overnight trade yielded a per share profit of $2.51 USD or a gain of 10% over our entry price. On our 1000 shares, we obtain a gross profit of $2510 USD.

- Spydertrader
 
Quote from Spydertrader:

2005-07-06, Wednesday - Lists

Dry Up Stocks Scores

CKCM - 5
DCAI - 7
MCRI - 7
MFLX - 7
More...

Spydertrader very good job!!!!


I don´t have MCRI in dry up. Maybe because of different data provider. I use CSI Data?????????

Best regards, Helmut
 
Quote from hpeganz:

Spydertrader very good job!!!! I don´t have MCRI in dry up. Maybe because of different data provider. I use CSI Data?????????
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Thanks Helmut. We avoid entering into long positions when we have large gap openings on stocks due to these gaps often 'filling' as time progresses. For these same reasons, I exited before reaching Peak Volume Levels on MCRI.

With respect to data source issues, I recommend everyone run through a double check of their numbers by using the Web Site Version of the Chartscript. I started doing so after a few issues with my own data source. It only takes a few seconds to run through the entire Final Universe List, and it may save you a number of headaches in the future.

- Spydertrader
 
2005-07-05, Wednesday - Update

This morning, I monitored one list of stocks (4 total equities): Those equities from our daily Hot List and from our Final Universe List finding themselves "In Dry Up."

Dry Up Stocks

CKCM DCAI MCRI MFLX

Our system generated two possible trade signal from the list of four Dry Up Stocks when actual volume exceeded calculated "Low Band" Dry Up Volume prior to 11:30 AM.

Dry Up Stocks Triggering Signal

CKCM MCRI

Dry Up Stocks NOT Triggering Signal

DCAI MFLX

CKCM did NOT show price improvement ($21.90) at time of signal generation (11:07 AM). In addition, MACD Histogram showed a negative return (-.1001). Also, The Stochastic Indicator fell below desired levels (11.3953).

As a result, I took no action with respect to trading CKCM.

MCRI DID show price improvement ($22.42) at time of signal generation (10:01 AM). In addition, MACD Histogram showed a positive return (+.0432). Also, The Stochastic Indicator fell above desired levels (84.2837).

The trade particulars are as follows:

MCRI

Time: 10:02 AM
Price: $22.42
MACD: +.0432
Stoch: 84.2837
Score: 7
FRV: 275,039 shares
Peak: 399,318 shares

07/06/05 10:02 AM 22.92 22.92 22.92 1000

As you can see, I didn't receive the best fill from my broker (50 cents above the price at signal generation). Not too long after receiving the horrible fill, price started doing some crazy things. "Erroneous Data Errors" began to appear and then disappear from the charts. Already displeased with my fill, and now watching unexplained changes being made to Time and Sales, I decided to exit as my comfort level with this stock no longer justified holding onto the position. I sold all 1000 shares at the $23.12 price point yielding a $200 USD gain on 100 shares. I consider the whole deal a wash trade and have noted the Results File accordingly.

- Spydertrader
 
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