Quote from newtoet:
This is confusing. I thought you were looking for volume to just reach DU by 11am, provided it was in DU the previous day. Please clarify. Thanks.
Quote from Bubba7 (aka Jack Hershey):
08-25-03 12:56 PM
Monitoring.
In a nut shell.
Monitor the hot list and pro rate volume from open to 11:00.
This is data for step 1.
2. Analyze the volume to see if it exceeds DU before 11:00.
3. Make a decision to buy if it does.
4. enter on a market order and the price is determined by the market
Quote from newtoet:
Thanks for your efforts and patience, Spydertrader. My question is you have 4 stocks on the hotlist, culled from the 30 above. Do you arrive at the 4 by running them through the criteria listed - float, volume, eps - or am I not understanding?
Also, regarding the 30 stocks - 10 each in seven, zero, and one categories - I do not understand the relevance of the sevens, zeros, and ones. Maybe I am dense (very possible), but after the initial selection of 10 from each category, is there any significance to these category numbers?
Quote from newtoet:
This is confusing. I thought you were looking for volume to just reach DU by 11am, provided it was in DU the previous day. Please clarify. Thanks.
Quote from snooptrader:
Great journal. Are you using the DU calculation from the chartscript results (link you gave in your first few posts), or are you calculating on your own? The reason I ask is that I looked at the DU in chartscript and compared it to Friday's volume, and using those parameters the stocks were NOT in DU. What am I doing wrong?
Also, you said "I will watch these stocks to see if they reach FRV by 11:00 AM Monday." Didn't you mean if they reach DU by 11:00?
Quote from Spydertrader:
You arrive at the Hotlist stocks (today we have 5 - ESMC, PMTI, CRDN, ENWV and PETD) by first using the stocktables.com criteria. The resulting list (normally around 100 - we had 81 if I recall correctly) is used to produce 3 lists of ten stocks (from the top, middle and bottom of the stocktables.com sorting). I think you have this correct from my reading of your question.
These three lists correspond to different stock 'scores' used by Jack Hershey. Each score represents a particular point on a stock chart cycle. Attached, please find an example of scoring as it relates to a stock cycle.
Jack uses Price (P), Volume (V) and Accumulation / Distribution (A/D) to determine a 'score' for a particular stock. Using binary scoring, and the P,V relationship, Jack uses a formula to obtain a score.
The formula Jack uses to 'score' the stocks can be located here:
http://sputnick5.www8.50megs.com/
The stocktables.com web site automatically scores the stocks for us when we create our three lists of ten stocks.
I hope that provides some clarification for you.
- Spydertrader
Quote from Spydertrader:
In a previous post, I described the various methods used to calculate dry up volume. I seek to determine which method BEST calculates DU and correctly anticipates a breakout. I hope to reach a conclusion by the end of this year. All the stocks in the 'Watch List' are in one form of dry up or another. Different formula used to calculate dry up levels results in different DU levels calculated for the same stocks. The watchlist I posted has several stocks in dry up according to the Chart Script at Wealth-Lab. Comparing the results of ANIK from yahoo historical data, ANIK had a volume Friday of 17,100 shares vs. a DU volume of 42,400 shares. Since the ACTUAL volume was less than the DU Volume for ANIK, we consider the stock to be 'in dry up.'
Some of the stocks in the 'watch list' may not fall into the dry up category as defined by the chartscript at Wealth-Lab, but DO fall into dry up based on other DU Formula. In an effort to prevent confusion in this journal, I provided one easy to use method (and mentioned several other methods in subsequent posts). When I determine the BEST method for DU Volume Calculations, I will share the results. For now, I continue to track several methods, but primarily use Chart Script at Wealth-Lab. Jack Hershey uses 'eyeball' and several equations for TC2000.
I hope the above provided you adequate clarification.
- Spydertrader
Quote from snooptrader:
I think what newtoet is asking is after you get your three lists of ten (using stocktables.com), how do you cull that to the final five (or whatever the number ends up being - in your example above it was five). Are those five the only ones out of the three lists of ten that meet the requirements you list for float, volume, etc (I think you listed four)?
Quote from Spydertrader:
I apologize for my confusion. Yes, I understand the question now. Thank-you for the clarification. Today's Hotlist contains only stocks that meet our selection criteria. We start with some 10,000 different companies narrowing the field to about 100 or so from the stocktables.com web site using the criteria mentioned previously (high eps and rs rank). We then narrow the field further to 30, and finally to 4. I have seen the Hotlist contain as few as 2 stocks, and as many as 15. We arrive at our Hotlist by running all 30 stocks (from the three lists) through the Chart Script at Wealth-Lab keeping only those stocks that have a rank (at this point we were left with five stocks). Then we check our final exclusion criteria (float, positive EPS, etc.) to make the final cut (at this point we would have 4). Jack Hershey monitors his Hotlist to look for stocks to trade based on the parameters previously mentioned. I compare the Hotlist to the 'Final Universe' list (attached to a previous post) comparing DU values for each stock (via Chart Script) to the previous trading day volume. Any stock in the Hotlist NOT already in the final universe list, I add and monitor daily. Any stocks from the 'final universe list' in DU I place into the 'Watch List' and monitor via Quotetracker.
I hope that clears things up. Again, I apologize for my misunderstanding.
- Spydertrader