Spydertrader's Jack Hershey Equities Journal

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Quote from Spydertrader:

The data I use didn't show a volume breach of the 100,000 level until 11:42 AM EST. I suspect the difference is due to different data providers rather than a time delay. MACD has dropped just to the negative side (-.0124), and The Stochastic Indicator has fallen to 48.1482. Since it does not appear that the trend we witnessed earlier this morning has continued, I plan to pass on this trade at this time. However, I plan to continue to monitor this stock throughout the day.

- Spydertrader
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Looking at the 30 minute chart. It seems that it just made a pt 3 for the long trend. Often, a stock will first take off, pull back to mae a pt 3 and then resume back. What do you mean by pass on this trade? Exit for a loss?
 
Quote from nwbprop:

Looking at the 30 minute chart. It seems that it just made a pt 3 for the long trend. Often, a stock will first take off, pull back to mae a pt 3 and then resume back. What do you mean by pass on this trade? Exit for a loss?
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At the time of the post, I did not feel the information available supported taking a long position. As a result, I took no action (passed on this trade). Earlier, when the 25% of Dry Up Volume had been breached and the price of ESMC was $11.25, I indicated that I would be monitoring the pro-rata volume, not using it to determine a trade. Because I hadn't used pro-rata volume since watching Jack use it last year, I wanted to monitor how the Hershey Stocks reacted to the use of pro-rata volume before jumping in with both feet. I apologize for the confusion.

- Spydertrader
 
Quote from Spydertrader:

At the time of the post, I did not feel the information available supported taking a long position. As a result, I took no action (passed on this trade). Earlier, when the 25% of Dry Up Volume had been breached and the price of ESMC was $11.25, I indicated that I would be monitoring the pro-rata volume, not using it to determine a trade. Because I hadn't used pro-rata volume since watching Jack use it last year, I wanted to monitor how the Hershey Stocks reacted to the use of pro-rata volume before jumping in with both feet. I apologize for the confusion.

- Spydertrader
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After I posted, I looked back to reread what you wrote since I was confused. I see that you said that they were NOT actual trades. My bad.
 
Quote from Spydertrader:

At the time of the post, I did not feel the information available supported taking a long position. As a result, I took no action (passed on this trade). Earlier, when the 25% of Dry Up Volume had been breached and the price of ESMC was $11.25, I indicated that I would be monitoring the pro-rata volume, not using it to determine a trade. Because I hadn't used pro-rata volume since watching Jack use it last year, I wanted to monitor how the Hershey Stocks reacted to the use of pro-rata volume before jumping in with both feet. I apologize for the confusion.

- Spydertrader
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ESMC does not look too good now. I think you did a great job at not taking this trade. The Pt 3 resume on the 30 min failed (failure to traverse).
 
Quote from nwbprop:

ESMC does not look too good now. I think you did a great job at not taking this trade. The Pt 3 resume on the 30 min failed (failure to traverse).
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Thanks for the 'atta-boy' Nwbprop, although I cannot take full credit. Following our simple set of rules kept me out of that trade.

Interestingly, following our simple set of rules kept us out of two very profitable trades today as well. Both NGPS and HRT improved in price over the time at which the system signaled. Closing price for HRT: $32.45 (up from $30.75 at signal) and NGPS: $18.89 (up from $17.50 at signal). With NGPS, the relatively low average volume kept us out of the trade (56,000 shares). With HRT the float fell outside normal parameters. However, even though these two stocks performed rather well today, it does not mean our system failed us. Our system did generate the correct signals for both these stocks. The vast majority of the time, following our rules prevents losses by minimizing risk - as exemplified by ESMC today.

For the future, continuing to follow our guidelines will prevent far greater a number of losses than it will prevent us from trading in winners.

- Spydertrader
 
http://www.canslim.net/ebulletin/breakoutstoday.htm

The above link takes you to the FREE Version of William O'Neil's CANLSIM Method Newsletter for Monday, November 15, 2004. You should notice a few Hershey Stocks on today's list. Jack Hershey has spoken many times regarding the similar nature of the canslim Method Universe and the Hershey Equities Universe. The similarity stems from using Relative Strength (RS) and Earnings per Share (EPS) rankings in both methods. As a result, you will often see certain stocks appearing on canslim.net recommendation emails, as well as in our Watch List. ALDN, NAVR & MKTW to name a few.

If you click on the links to the background material I posted at the beginning of this thread, Jack speaks extensively on this very subject in "The Big Post I - X" and in "Catch-Up, Tomorrow's Newspaper Today." Highly recommended reading when you can spare the time.

Emails such as the one I have linked above are sent weekly, daily or several times per week, depending on the subscription payment level (FREE, pay, or pay 'a lot'), to every subscriber at the canslim.net web site.

I post the above information to point out an interesting fact. We arrive at a similar group of stocks to watch as a Market Guru - William O' Neil (or at least, a similar list to the ones generated by the employees of William o'neil). The interesting part comes when one realizes that we arrive at our stocks to watch BEFORE the subscribers at canslim.net receive their emails. The Hershey Equities Method really is like getting "Tomorrow's Newspaper, Today."

- Spydertrader

Disclaimer: I signed up for the free newsletter from canslim.net long before I began to read about Jack Hershey on USENET. I continue to receive the canslim.net newsletter simply because I have never gotten around to unsubscribing (my email filters send the newsletter to my junk mail folder). The above post is not intended as a recommendation of their services, nor should the above post imply it is necessary to subscribe to canslim.net to trade the Jack Hershey Equities Method.
 
Sevens - Ones - Zeros
NGPS - RIO - FFIV
MKTW - CREE - DRTK
XPRSA - EWBC - SHFL
TKC - TIBX - MTEX
LCAV - PMTI - HANS
NAVR - DECK - CRDN
MRGE - ARTI - TNP
VCLK - YHOO - AMHC
ALDN - UTHR - JUPM
SFCC - CTSH - PHS

Hotlist

NGPS
HANS
ALDN
FFIV
JUPM
NAVR
PMTI
MKTW

Watch list

BCSI - DU Cycle - DU5 - DU10
ANIK - DU Cycle
SWIR - DU Cycle - DU5 - DU10
ENWV - DU Cycle
SMTS - DU Cycle - DU5
NTES - DU Cycle
HLEX - DU Cycle
LIFC - DU Cycle

SRVZ Wealth Lab Equations - Dry Up

ECSI

GM334K Master List Scores for Above Stocks

ECSI - 7

Gallas2 "Keep an Eye on These" Stock

ESMC (attached) We still need to watch this one tomorrow

(VSEC, NVEC, NGPS, IDSA, HRT & LWAY have float outside normal parameters)
 

Attachments

Thanks for the link, Spydrtrader. I recognized quite a number of symbols. I think our fundamental screening is simply outstanding - with great thanks to Jack.

What we have to perfect are our entry rules and exists. You have done a marvelous job in this department thus far. However I think you agree that we can do even better.

Thanks again for your outstanding efforts.
 
Quote from svrz:

What we have to perfect are our entry rules and exists. You have done a marvelous job in this department thus far. However I think you agree that we can do even better.

Thanks again for your outstanding efforts.
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Yes, I most certainly do believe we can (and will) do better. We have already improved upon our methods in the short time since this thread began due in part to your contributions, and the contributions of many others to the thread content. Through the continued process of "collaborative iterative refinement," as this journal has become, we should continue to strive for improvement.

As a result, I continue to encourage questions, input, contribution, commentary and analysis. Thanks again to everyone that has shared their efforts thus far.

- Spydertrader
 
Our system failed to generate any signals this morning as none of the Watch List stocks experienced actual volume that exceeded calculated Dry Up Volume. BCSI did reach a pro-rata volume of 50% by 10:30 AM, but did not show price improvement. Volume pace for BCSI slowed soon after resulting in failure to achieve dry up. As a result, we take no action.

- Spydertrader
 
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