Spydertrader's Jack Hershey Equities Journal

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I must be missing something. I have been following this nice journal to learn a lot of Hershey's techniques but I haven't seen any trades go into the expected 6-8 day holding period since I started reading this three weeks ago or so.

So my question is this - Should we only be trading Hershey methods when the major indexes are up and/or not down? I was looking to use for for 6-8 days trades to make 15%, but the "system" isn't working and I'm only in stock intraday or overnight sold the next day. Is this just the nature of the today's market?

Respectfully,
Jakeytrader
 
Quote from jakeyTrader:

So my question is this - Should we only be trading Hershey methods when the major indexes are up and/or not down? I was looking to use for for 6-8 days trades to make 15%, but the "system" isn't working and I'm only in stock intraday or overnight sold the next day. Is this just the nature of the today's market?
More...

Although Jack Hershey recommends a 6 to 8 day hold period for equities which qualify, I only use a four day maximum hold period. I have found the lower maximum hold time has reduced the number of overall losses experienced by holding longer. In many of Jack's posts, he has also advised shortening the hold time in order to increase money velocity. Although this system provides both long and short signals, which, for the most part, occur independent of overall broader market direction, August traditionally presents many challenges to traders. My own trading during the first half of August resulted in numerous losses. I expect September to provide improved volume on the trades we take. The increase in volume follow through should result in an increase in the number of trades held overnight and beyond.

Hope that helps.

- Spydertrader
 
2005-09-02, Friday - Update

This morning, I monitored one list of stocks (7 total equities): Those equities from our daily Hot List and from our Final Universe List finding themselves "In Dry Up."

Dry Up Stocks

CKCM DCAI FORD IIG IRIS NGPS RADS SNHY

Our system generated one possible trade signals from the list of eight Dry Up Stocks when actual volume exceeded calculated "Low Band" Dry Up Volume prior to 11:30 AM.

Dry Up Stocks Triggering Signal

IRIS

Dry Up Stocks NOT Triggering Signal

CKCM DCAI FORD IIG NGPS RADS SNHY

IRIS did not show price improvement ($17.00) at time of signal generation (10:10 AM). In addition, MACD Histogram showed a negative return (-.0228). Also, The Stochastic Indicator fell below desired levels (28.12). As a result, I took no action with respect to trading IRIS.

- Spydertrader
 
2005-09-02, Friday - Update

Very low volume today across the board on our Dry Up Stocks. I do not anticipate any exceeding FRV Levels by EOD.

- Spydertrader
 
Hello All You SpyerTrader Fans !!

I trade several, altho not all, of the SypderTrader Universe Stocks.

I do not use the Hersey Method altho some of the "analysis" I use is similar. Anyway, this week I traded FORD (see previous post) & had positions in IRIS (200@17.01) & RADS (100@11.83) going into today.

Today, near the close I sold 1 Oct15c on IRIS @ 2.50. MY TAKE on IRIS is while its a +/uptrend stock its MO isn't likely to carry it over resistance in 17-19 area while support around 15 is good.
Therefore, as a "chicken trader" I chose to hedge for an expected approx 21 3/4 - 22 % anualized gain. NOTE: on the other 100 IRIS shares I had sell order for Oct17.50c which was not executed.

As for RADS, I'm growing desperate (perhaps a bad choice of words given my huge 100 share position). RADS needs to get over $12 to leg up & showed no signs of doing so.

GOOD TRADING to you ALL !!
 
Quote from cowpok1027:

GOOD TRADING to you ALL !!
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Thanks again for posting your observations and trades. I too didn't have a lot of faith in today's market when reviewing the data last night. End of the Summer, Long Holiday Weekend, mixed economic news and the after affects of Katrina combined to create a day where volume just didn't seem to want to hang around. As a result, we witness a number of equities undergoing "4 o'clock drift" or an out right downtrend by EOD. I look forward to next week, and hopefully, some follow through with respect to volume.

- Spydertrader
 
To create the following lists of stocks, I used 90 RS and 80 EPS. Using 90 RS and 90 EPS resulted in an initial stocktables.com sort of too few equities.

2005-09-06, Tuesday - Lists

Hershey Wealth-Lab Chartscript Culling Methodology
Hershey Equities Rank V 3.0.0 / Qcharts Culling / Stocktables.com Sort

Hot List

DPTR FORD HANS IRIS NETL SNHY VPHM

Dry Up Stocks

CKCM CMT DCAI ELOS FORD HANS IIG IRIS JMDT MCRI NGPS RADS RTSX SNHY

Hot List Stocks Scores

DPTR - 0
FORD - 0
HANS - 0
IRIS - 1
NETL - 5
SNHY - 0
VPHM - 0

Dry Up Stocks Scores

CKCM - 0
CMT - 0
DCAI - 0
ELOS - 0
FORD - 0
HANS - 0
IIG - 0
IRIS - 1
JMDT - 0
MCRI - 1
NGPS - 1
RADS - 0
RTSX - 0
SNHY - 0

Keep an Eye on These Stocks

NGPS (Attached)

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=833059>
 

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