Spydertrader's Jack Hershey Equities Journal

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For shorting Hershey Stocks, you would want (of course) to have Dry up Volume exceeded by 11:00 AM, price to be falling, MACD in the negative, and Stochastics below 25. Since limited documentation exists on Jack's own methods for shorting his equity system, perhaps anyone familiar with shorting Hershey Stocks could expand on the criteria I listed above. Although the 'shorting criteria' all appear to have been met by EVCI, since we are discussing LONG only methods in this journal, I opted NOT to trade the signal.

Again, I must reiterate: The VAST majority of Jack Hershey posts regarding his Equity System concern trading from the LONG side only. The criteria for shorting Hershey Equities has primarily been developed by Superfly and myself.

- Spydertrader
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I am just learning the JH method on the long side, and know NOTHING about how it would apply to the short side. But, from a logical standpoint why wouldn't you look for the weakest stocks to build your universe and hotlist (lowest RS/EPS), and apply the volume analysis?
 
Quote from Spydertrader:

I have enjoyed reading the ongoing discussion regarding time and length of various cycles...

Please feel free to continue.

-Spydertrader
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Thanks Spyder. I appreciate your explanation. I still have a question or two but do not want to detract from the progress of this thread. So I will take the approach that I cannot tamper with something that is performing well enough especially considering the tremendous success that you have had with it.

So, moving forward. Here is v0.16 of the auto scorer. I've added filters for 65 day vol > 200k, +EPS, FLOAT > 5Mill and < 60 (??? or should this be 30) Mill, and Institution or Insider Ownership by more than 25%. Additionally, I have normalized the data (ie. split adjusting prices when splits occur). This is probably as far as I will be able to take auto anything. I find that the remaining items are more subjective and thus not possible to code (ie. channelling, "price generally above MA(50)", etc...). However, if anyone else has any other suggestions and or unlikely :D bugs, I will try to address them to the best of my abilities.

Again! Many thanks to all the contributors.

REGARDS & NJOY
G33M4K the Newb

Just a sidenote, this new version
takes about 3-5 mins depending on
your machine. Getting the inst/isidr
info proved to be a thorn in my @ss,
hence the hack resulting in increased
run time. Have faith tho, the macro
will complete.
 

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Quote from newtoet:

But, from a logical standpoint why wouldn't you look for the weakest stocks to build your universe and hotlist (lowest RS/EPS), and apply the volume analysis?
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On the surface, choosing the weakest stocks would appear to be the logical choice for shorting the Hershey Equities Method. However, after reading volumes of information written by Jack Hershey, one cannot help but come away with an impression that "The compound Interest Formula" and "Maximizing the Money Velocity" remain driving forces behind his methods.

As a result, it is my opinion (and I stress this is ONLY my opinion) that similar fundamentals required of stocks we buy to go LONG would be required of stocks we short. We seek stocks that 'cycle' 5 times (or more) in six months - a fundamental building block required of ALL stocks we trade. Stocks that cycle don't just go UP in price. They occasionally pullback. In addition, it stands to reason that stocks with 'weak' fundamentals may not cycle at all.

The attached chart provides a 'score' for each position on a fictional stock chart. Similarly to our LONG stocks transitioning from zero to seven, stocks receiving a certain 'score' would make perfect candidates for shorting. Other conditions would also need to apply. A combination of price, volume and A/D holds the key to both LONG and SHORT trading with Hershey Equities.

Again, the above explanation comprises my OPINION on the possibilities of shorting Hershey Equities based on my experience trading Jack's Methods. Additional information from Jack Hershey himself should be sought to further clarify and expand on the above.

- Spydertrader
 

Attachments

My understanding is to short the retrace of long trends, the pullbacks. Jack did a post a while ago and related it to a lightning bolt shape, but I cannot find the record or a reference to it. I attached this doc where he also discusses similar ideas, he always is persistant and consistant.

Hope this helps, keep it rollin :cool:
 

Attachments

Seven Ones Zero
HTCH TASR SIE
MAD ARTI CNCT
MTEX NAVR CMTL
GIVN FMD CLE
NIHD HANS UTHR
ANIK LEND BR
ASVI CFC ALDN
PMTI PETD RRGB
DDN HDWR HDWR
CNC RRGB PETD

Hot List:

TASR
ANIK
ALDN
HANS
PMTI
NAVR

Watch List:

SWIR HLEX CALM NAVR EVCI ENWV TASR LSCP LWAY ESMC NVEC SMTS

(LWAY, NVEX & ESMC have float issues)
 
Quote from Moz:

My understanding is to short the retrace of long trends, the pullbacks. Jack did a post a while ago and related it to a lightning bolt shape, but I cannot find the record or a reference to it. I attached this doc where he also discusses similar ideas, he always is persistent and consistent.

Hope this helps, keep it rollin :cool:
More...

Thanks Moz for providing the necessary confirmation and documentation of Jack's thoughts on shorting. I have no doubt many will find the information useful.

- Spydertrader
 
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