Spydertrader's Jack Hershey Equities Journal

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As we anticipated, The MACD crossed into negative territory at around 1:00 PM while monitoring ALDN on a 30 minute chart. As a result, I sold 400 shares of ALDN at $24.95. Although the above trade resulted in a .15 cents per share gain (about 40 dollars after commissions), we consider this a 'breakeven' trade or 'wash' under Jack Hershey terminology. The lessons learned monitoring previous failed breakouts and practicing correct trendline analysis hopefully provided us with a benefit today.

- Spydertrader
 
Quote from Spydertrader:

The price for LIFC fell triggering our stop loss at $9.97 resulting in a 5% loss. HANS, on the other hand, continues to improve in price today - up another .45 over yesterday's close. ALDN exceeded both the DU5 and DU Cycle levels of Dry up this morning.

Price: $24.80
MACD: .1032
Stochastics: 76.4615

However, two things caused me to monitor the above trade closely for a possible early exit. First, the stochastics was barely above the 75 range. We like to see The Stochastic Indicator at 75 or higher. Also, the stochastic red line was above the green line in the quotetracker program I use for monitoring. This normally results in the trend not confirming. Second, the chart for ALDN (attached) has a narrow range resulting in a purchase price near the left side of the channel (a mistake we made before and wish to avoid in the future). Therefore, if price and volume improvement does not continue, we will exit the trade early.

- Spydertrader

Edit: I forgot to mention 400 shares @ 24.80
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Running out to play tennis but I thought I would post my chart of ALDN real quick.
 

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Quote from gallas2:

Move stop to 36.74 on AMMD

Took half off BRC. 49 stop on rest
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AMMD stopped and now setting up again. Re-entries can be very profitable.

Move BRC stop to 49.20. Crouching like a dancer ready to spring.

Chunky returns - best in a year.

Long FDS, FDG

Watching AMMD, CNCT, DADE, CREE
 
Sevens Ones Zeros
MTEX TASR HRT
VSEC JUPM TRMB
DDN CRDN EAGL
IDSA CNCT ULCM
DPTR URBN GIVN
ENWV HDWR PETD
HTCH SIE DECK
ECSI CCBI SNDK
TNP BR YHOO
TS GILD RIO

Hot List:

TASR
HRT
VSEC
IDSA
DPTR
CRDN
ENWV
JUPM
ECSI
PETD

(HRT, VSEC and IDSA fall outside normal float parameters)

Watch List:

TASR - DU Cycle
NVEC - DU Cycle - DU5
CALM - DU Cycle - DU5 - DU10 - DU20
LWAY - DU Cycle
ANIK - DU Cycle
SWIR - DU Cycle - DU5 - DU10 - DU20
EVCI - DU Cycle - DU5
HANS - DU Cycle - DU5 - DU10
CRDN - DU Cycle
LIFC - DU Cycle
NAVR - DU Cycle
ASKJ - DU Cycle - DU5 - DU10

(NVEC falls outside normal float parameters)
 
No signals generated by our system today as actual volume for our Watch List stocks fell far short of levels required. We continue to monitor HANS holding 200 shares LONG at present.

- Spydertrader
 
sevens ones zeros
OPEN ARTI SNDK
GDP TASR PENN
DDN JUPM GIVN
CYTC HRT LPX
FMT CRDN INSP
CTSH NAVR UTHR
ENWV RIO CREE
ECSI FTI MRVL
URBN NIHD LEND
CFC CFC YHOO

Hot List:

TASR
HRT
CRDN
ENWV
NAVR
JUPM
ECSI

(HRT remains outside normal float parameters)

Watch List:

TASR - DU Ccycle
HRT - DU Ccycle - DU5
NVEC - DU Ccycle - DU5 - DU10 - DU20
CALM - DU Ccycle
LWAY - DU Ccycle - DU5 - DU10 - DU20
ANIK - DU Ccycle - DU5 - DU10
SWIR - DU Ccycle - DU5 - DU10
ALDN - DU Ccycle - DU5 - DU10 - DU20
HANS - DU Ccycle - DU5 - DU10 - DU20
GMAI - DU Ccycle
LIFC - DU Ccycle - DU5
NAVR - DU Ccycle
ASKJ - DU Ccycle - DU5


(HRT, NVEC & LWAY remain outside normal float parameters)
 
Volume continued to remain low on our Watch List stocks. As a result, the system generated no buy signals again today.

An interesting set of events transpired earlier in the week with ENWV (Tuesday 10-05-2004). While in the Daily Watch List, ENWV failed to exceed dry up volume prior to 11:00 AM. However, by day's end, the volume of ENWV reached a level 3 times that of dry up volume (You may recall FRV=3 x DU) - with a significant majority of the volume traded in the final two hours of the day. The next day (10-06-2004, Wednesday), ENWV gapped up and price continued to increase over the next two days - well beyond our 10% target increase.

Unfortunately, I failed to notice the above events until I completed post market analysis. The lesson: These methods DID generate a signal, but I failed to catch it in real time due to a failure to monitor volume post 11:00 AM. In an effort to eliminate repeating a similar mistake in the future, I now plan to monitor Volume Levels beyond the 11:00 AM time frame. After 11:00 AM, we will be monitoring for FRV Volume by day's end.

The Wealth Lab Chart Script posted below automatically calculates FRV, or you can simply multiply DU Volume by 3.

http://www.wealth-lab.com/cgi-bin/WealthLab.DLL/editsystem?id=32994

Attached, please find a daily chart for ENWV. I hope you find the above information useful.

- Spydertrader
 

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Interesting point on monitoring volume past 11:00. I think that is what Snoop was getting at (though he was talking about entering the next day) when he said this back at the beginning of this thread:

"Still waiting to see if it makes FRV by the EOD. I assume you (Spydertrader) check FRV at EOD even if they don't trigger by 11:00? If that happens, do you enter the next morning provided your indicators confirm?"

As I read the JH history, it sounds like analyzing FRV and entering the next day is how he started, and then to get in earlier the 11:00 rule was implemented. It makes even more sense if you can monitor throughout the day, as you could have a gap situation the next morning.

Keep up the good work, spydertrader.
 
Quote from gallas2:

AMMD stopped and now setting up again. Re-entries can be very profitable.

Move BRC stop to 49.20. Crouching like a dancer ready to spring.

Chunky returns - best in a year.

Long FDS, FDG

Watching AMMD, CNCT, DADE, CREE
More...

Another benefit of this approach is it keeps you out when things are going down. Nothing to do but watch the Bosox and wait for things to set up again.
 
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