Spydertrader's Jack Hershey Equities Journal

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Hi Spydertrader,

I've just started to follow your method of trading. I'm used to the IBD's method (with some success), of trading. The method you describe "feels" more like the style of trading I'm used to. I'd really like to employ this method once I understand it fully.

My Question: I don't see anywhere in your instructions about buying when breaking through resistance levels, along with increased volumue, previous dry-up etc... Do you advocate looking for a price resistance level to purchase at or is positive price movement good enough to buy from (of course, all other criteria must be met)?

thanks so much for your time,

smashandgrab
 
Quote from Mercury77:

Are these numbers reffering to the cycle stages 0,1 and 7 that Hershey talks about? And if so How can you tell just by scanning (and not seeing the chart formation) that a stock is in that stage because what we want is stocks that are at the bottom or near the bottom of recent decline in an up trend with DU volume and than waiting for the move in price and volume to buy? Am I right on this?
More...

Welcome to the Journal, and I hope you find the information here useful to your trading.

Ideally, we would want to enter into a long position at the exact moment you describe above. However, reality does not always conform to our ideals.

Yes, the stocktables.com "Three List Creation Method" taught by Jack Hershey permitted 'Scoring' of the equities based on their position in the Stocktables.com list. Jack used the three lists as a clever method for approximating score. However, as many individuals pointed out (on other web sites and in other threads), many equities failed to have a correlation between their actual score and their stocktables.com list position.

Today, The Hershey ChartScripts automatically calculate Score for each equity in question. As a result, we no longer need to sub-divide the stocktables.com initial sort into three lists. As you progress with your reading of the Journal, you will arrive at the point where we stopped creating three lists each day.

I hope to post an upgraded scoring algorithm with the next update to the Hershey Chartscripts. This updated methodology mirrors the exact methods described by Jack Hershey in many of his USENET posts. Ideally, we would want to purchase a stock as it transitions from a Score of One or Zero to a score of Seven or Six. Again, reality often fails to conform to our ideals. As a result, actual volume exceeding Low Band Dry Up Volume remains a possible entry signal regardless of Score.

Hope that helped.

- Spydertrader
 
Quote from smashandgrab:

I don't see anywhere in your instructions about buying when breaking through resistance levels, along with increased volume, previous dry-up etc... Do you advocate looking for a price resistance level to purchase at or is positive price movement good enough to buy from (of course, all other criteria must be met)?
More...

Thank you for your interest in our Journal. I hope you find the information contained here useful.

William O'Neil's CANSLIM Methods and Jack Hershey's Equities Methods have similar characteristics. Both seek high quality stocks in which to trade. Often, stocks on our Final Universe List find their way onto the CANSLIM watch lists. However, many aspects of CANSLIM do not apply to Hershey's methodology. I do not use price support and resistance levels in order to determine if or when to take a trade. Although, if using such tools aid your performance, I would not advocate against their use.

- Spydertrader
 
Quote from Spydertrader:

Welcome to the Journal, and I hope you find the information here useful to your trading.

Ideally, we would want to enter into a long position at the exact moment you describe above. However, reality does not always conform to our ideals.

Yes, the stocktables.com "Three List Creation Method" taught by Jack Hershey permitted 'Scoring' of the equities based on their position in the Stocktables.com list. Jack used the three lists as a clever method for approximating score. However, as many individuals pointed out (on other web sites and in other threads), many equities failed to have a correlation between their actual score and their stocktables.com list position.

Today, The Hershey ChartScripts automatically calculate Score for each equity in question. As a result, we no longer need to sub-divide the stocktables.com initial sort into three lists. As you progress with your reading of the Journal, you will arrive at the point where we stopped creating three lists each day.

I hope to post an upgraded scoring algorithm with the next update to the Hershey Chartscripts. This updated methodology mirrors the exact methods described by Jack Hershey in many of his USENET posts. Ideally, we would want to purchase a stock as it transitions from a Score of One or Zero to a score of Seven or Six. Again, reality often fails to conform to our ideals. As a result, actual volume exceeding Low Band Dry Up Volume remains a possible entry signal regardless of Score.

Hope that helped.

- Spydertrader
More...

Thanks for your explanation and quick reply! I will read the whole journal first and if I have questions or suggestions after that than I will post again.

Maurice
 
2005-07-27, Wednesday - Lists

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

Hot List

FORD NGPS SNHY

Dry Up Stocks

IIG MCRI PARL TASR UBET

Hot List Stocks Scores

FORD - 5
NGPS - 0
SNHY - 5

Dry Up Stocks Scores

IIG - 5
MCRI - 0
PARL - 5
SNHY - 5
TASR - 0
TRGL - 5
UBET - 2

Keep an Eye on These Stocks

UBET (Attached)

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=800785>
 

Attachments

Quote from smashandgrab:

Has there been any development in regards to shorting stocks?
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Good Morning to you as well. When I do short, I still use the same methods I posted earlier in the Journal. In another post, I uploaded a word document containing Jack's thoughts on shorting Hershey Stocks. Since I try not to include shorting Hershey Equities in the Journal Results, I only occasionally post my short trades. However, if you read my posts closely with respect to the daily updates, you can see which stocks I shorted.

- Spydertrader

http://www.elitetrader.com/vb/showthread.php?s=&postid=799669&highlight=CMT#post799669
 
2005-07-27, Wednesday - Update

This morning, I monitored one list of stocks (6 total equities): Those equities from our daily Hot List and from our Final Universe List finding themselves "In Dry Up."

Dry Up Stocks

IIG MCRI PARL TASR TRGL UBET

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

Dry Up Stocks Triggering Signal

MCRI PARL TRGL TASR

Dry Up Stocks NOT Triggering Signal

IIG UBET

TASR did show price improvement ($10.14) at time of signal generation (9:31 AM). In addition, MACD Histogram showed a positive return (+.0713). Also, The Stochastic Indicator fell above desired levels (85.94). However, Price for TASR gapped up over 5% this morning, and as a result, I took no action with respect to trading TASR due to The Gap Avoidance Rule.

PARL did not show price improvement ($30.06) at time of signal generation (10:39 AM). In addition, MACD Histogram showed a negative return (-.2151). Also, The Stochastic Indicator fell below desired levels (18.29). As a result, I took no action with respect to trading PARL.

TRGL did not show price improvement ($26.10) at time of signal generation (10:56 AM). In addition, MACD Histogram showed a negative return (-.0699). Also, The Stochastic Indicator fell below desired levels (11.25). As a result, I took no action with respect to trading TRGL.

MCRI did not show price improvement ($23.81) at time of signal generation (11:18 AM). In addition, MACD Histogram showed a negative return (-.1844). Also, The Stochastic Indicator fell below desired levels (4.43). As a result, I took no action with respect to trading MCRI.

- Spydertrader
 
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