Spydertrader's Jack Hershey Equities Journal

[Spydertrader]

2005-05-25, Wednesday - Update

This morning I monitored one list of stocks (5 total equities): Those equities from our daily Hot List and from our Final Universe List finding themselves "In Dry Up."

Dry Up Stocks

BCSI EXM EZPW MCRI TRGL

Our system generated three 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

EXM MCRI TRGL

Dry Up Stocks NOT Triggering Signal

EZPW BCSI

Of the three signals generated, one of the equities failed to show price improvement (MCRI) at time of signal generation, and as a result, we eliminated MCRI from further consideration.

TRGL showed price improvement. However, I had not noticed Average Daily Volume for TRGL had fallen below desired parameters. As a result of my aversion towards thinly traded equities, I eliminated TRGL from further consideration, and plan to delete TRGL from our Final Universe List by the end of this month.

EXM also showed price improvement at time of signal generation (10:37 AM). In addition, both MACD and Stochastics fell within desired parameters. The particulars for EXM were as follows:

EXM

Time: 10:37 AM
Price: $14.98
MACD: +.0256
Stoch: 95.2381
Score: 0
FRV: 319,320 shares

As a result, I entered into a long position with respect to EXM. I placed a long order for 1600 shares receiving a fill price of $15.00 USD.

05/25/05 10:41:40 15.00 15.00 15.00 1600

My Stop and Target Prices were as follows:

Target Price: $18.00
Entry Price: $15.00
Initial Stop: $14.75

Having left my computer early in the day, I failed to return home prior to market close. As a result, I continue to hold the 1600 shares of EXM even though actual volume of EXM failed to exceed calculated FRV by EOD.

- Spydertrader

 

[Capablanca]

I may have missed a previous discussion of it, but I notice that with your most recent trade with EXM you have doubled your target price so that it is 20% above entry and that you have applied a much tighter stop so that it is equivalent to the day's low instead of 5% below. Was this discussed previously or are you experimenting with a new target and stop criteria?

 

[Spydertrader]

Quote from Capablanca:

I may have missed a previous discussion of it, but I notice that with your most recent trade with EXM you have doubled your target price so that it is 20% above entry and that you have applied a much tighter stop so that it is equivalent to the day's low instead of 5% below. Was this discussed previously or are you experimenting with a new target and stop criteria?

Thank-you for pointing out my error. In a hurry, I inadvertently typed in the incorrect amounts. The correct prices should have read:

Target Price: $16.50
Entry price: $15.00
Initial Stop: $14.25

Again, I apologize for the confusion, and I appreciate you permitting me the opportunity to clarify.

- Spydertrader

 

[Spydertrader]

2005-05-26, Thursday - Lists

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

Hot List

DCAI ELOS FORD MCRI MFLX PARL SNDA USG

Dry Up Stocks

BCSI EZPW TASR TRGL

Hot List Stocks Scores

DCAI - 5
ELOS - 0
FORD - 4
MCRI - 2
MFLX - 3
PARL - 4
SNDA - 5
USG - 5

Dry Up Stocks Scores

BCSI - 0
EZPW - 0
TASR - 0
TRGL - 5

Keep an Eye on These Stocks

TRGL (Attached)


<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=755950>

 

[Spydertrader]

2005-05-26, Thursday - Update

Our system triggered one signal today (TRGL). Although we did see price improvement, both MACD and The Stochastic Indicator failed to show desired parameters. As a result, we take no action with respect to TRGL.

I continue to hold 1600 shares of EXM.

- Spydertrader

 

[hpeganz]

Quote from Spydertrader:

2005-05-26, Thursday - Update

Our system triggered one signal today (TRGL). Although we did see price improvement, both MACD and The Stochastic Indicator failed to show desired parameters. As a result, we take no action with respect to TRGL.- Spydertrader

Spydertrader,

In order to fully understand this "mechanical system" I have a few questions left:

MCAD - which value do you use? I assume you use the histogram between the MACD and MACD exponential average!?
(30 minute chart or 5 minute chart)

Stochastics - which value do you use in your reports? %K or %D?
(30 minute chart or 5 minute chart)

Quote from Spydertrader:

2005-05-26, Thursday - Update

I continue to hold 1600 shares of EXM.

- Spydertrader

on the day taking the signal for EXM there was I think no confirmation of frv and I think you just hold on EZM by chance. It already reached more or less your goal of 20%. - Why do you hold it again?

Which stop do you use now in this system?

Best regards,

 

[Spydertrader]

Quote from hpeganz:

MACD - which value do you use? I assume you use the histogram between the MACD and MACD exponential average!?
(30 minute chart or 5 minute chart) Stochastics - which value do you use in your reports? %K or %D?(30 minute chart or 5 minute chart)

I use a thirty minute chart for intraday monitoring of equities. The settings for MACD Histogram and The Stochastic Indicator are as follows:

MACD (5, 13, 6)
Stoch (14, 1, 3)

I report the %D line (Green Line in Quotetracker).

Quote from hpeganz:

On the day taking the signal for EXM there was I think no confirmation of frv and I think you just hold on EZM by chance.

As actual volume failed to exceed FRV for EXM on the day I initiated the trade, I should have sold my shares by EOD. However, I was away from the computer at market close, and unable to monitor my positions. As a result, I held onto those positions. Today, volume continued to rise over the previous day. From Jack's Jokari window, we expect the trend to continue when rising price and rising volume occur. My only concern: the appearance of "4 o'clock drift" with the slow degradation of price throughout the afternoon.

Quote from hpeganz:

It already reached more or less your goal of 20%. - Why do you hold it again?

Not quite, but yes, almost. We anticipate reaching a target price 10% higher than our entry price. In this case, our purchase price of $15.00 USD, causes us to look to exit at $16.50 USD. EXM reached an intraday high of $16.45 today before retreating in price toward the close.

Quote from hpeganz:

Which stop do you use now in this system?

I begin with a 5% trailing stop, and move that stop upwards in parallel with price improvement. As price approaches either the 10% target price or our 4 day time stop, I tighten the stops up significantly in order to protect against significant reversals.

I hope you find the above information useful.

- Spydertrader

 

[Spydertrader]

2005-05-27, Friday - Lists

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

Hot List

DCAI ELOS FORD JUPM MCRI MFLX PARL SNDA USG VDSI

Dry Up Stocks

BCSI EZPW MFLX TASR

Hot List Stocks Scores

DCAI - 7
ELOS - 2
FORD - 7
JUPM - 2
MCRI - 4
MFLX - 5
PARL - 5
SNDA - 2
USG - 2
VDSI - 7

Dry Up Stocks Scores

BCSI - 5
EZPW - 2
TASR - 5
TRGL - 4

Keep an Eye on These Stocks

TASR (Attached)

The following Stocks have been ADDED to the Final Universe List as of 2005-05-26: VDSI.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=756748>

 

[Reno]

Hello SpyderTrader

Congratulations on the continued excellence of your journal. Your patience and commitment are extraordinary. As I followed the journal I C & P into MS Word posts I found interesting and helpful. It has grown to nearly 200 pages but may be useful to newer journal readers as it includes most of the Q & A regarding the methodology. Zip file attached (hopefully).

 

[Spydertrader]

Quote from Reno:

Congratulations on the continued excellence of your journal. Your patience and commitment are extraordinary. As I followed the journal I Copy & Paste, into MS Word, posts I found interesting and helpful. It has grown to nearly 200 pages but may be useful to newer journal readers as it includes most of the Q & A regarding the methodology. Zip file attached (hopefully).

Thank-you for your kind words regarding the Journal. I appreciate you generously sharing your efforts with everyone, and have no doubt, many will find your contribution helpful.

- Spydertrader