Our system generated two signals this morning: one long and one short. SINA had actual volume exceed calculated Dry Up Volume around 10:15 AM this morning. We see price improvement over the previous day. Both MACD (+.3287) and The Stochastic Indicator (77.2166) were within normal parameters. The only area of concern would be current price. By the time actual volume exceeded calculated dry up volume, price for SINA had already improved some $2.19 placing price outside our trend channel (See chart posted above). As a result, we will use a MACD crossover exit strategy, rather than, our normal 10% target price.
11/11/04 10:18:03 36.46 36.44 36.46 200
HLEX generated a signal around 10:25 AM. However, we did not have price improvement. In order to short a Hershey Stock, we need MACD to be negative, and The Stochastic Indicator to be extremely low. Both MACD (-.2875) and The Stochastic Indicator (6.8712) fell within these parameters.
11/11/04 10:27:52 13.98 13.98 13.98 500
At 10:50 AM, The Stochastic Indicator crossed above the 20 level and MACD began to slope upward signaling our exit.
11/11/04 10:50:37 13.00 13.00 13.00 500
As we have discussed on numerous occasions, shorting Hershey Stocks falls outside the parameters of this journal. Also, posting the trade some 2 hours afterwards, (although unavoidable due to a minor 'real world' crisis) gives an impression of impropriety. As a result, I do not plan to include this trade in the Journal results.
We continue to monitor SINA looking for an exit signal.
I hope you find the above information useful.
- Spydertrader
Edit: I should also mention that HLEX hit peak volume levels just before price reversed near the low of the day.
