Spydertrader's Jack Hershey Equities Trading Journal III

[foible]

Quote from TimDog:

For me, it is pretty straight forward and basic. I look or a stock in a downtrend bouncing of the LTL and starting a new dominant travese. I look for stochastics (5,2,3) to have just crossed the 50 line and having a sharp slope down, and MACD is negative or very close the the zero line heading towards negative territory.

RTL, I think you mean. Otherwise, that looks like a lot of what I'm looking for.

I've also had a lot of success looking at the unusual volume movers during the first 30 minutes of trading on the 5min chart, looking for high and sustained selling. I like to see volume hit 10% of the previous day's volume around 9:40-9:55 EST instead of looking for dryup since the biggest single-day drops don't seem to be correlated with DU.

From then, I follow the standard entry. If the stock has dropped a lot, you may wish to wait for a pullback or at least a pause on lower volume (5min chart) and then short into a the breakout. You'll miss a couple of trades this way, but you'll miss the nastier snap-backs also.

The last trade I took like this was COGO on the 18th. There was 10 minutes of heavy selling, a pause and then when it broke down, it broke hard. These don't come around very often, but once or twice a month you can catch a 10% single-day move.

 

[billp]

Most stocks that have big news headlines for the day will meet your volume criteria, I would think so.

Quote from foible:

RTL, I think you mean. Otherwise, that looks like a lot of what I'm looking for.

I've also had a lot of success looking at the unusual volume movers during the first 30 minutes of trading on the 5min chart, looking for high and sustained selling. I like to see volume hit 10% of the previous day's volume around 9:40-9:55 EST instead of looking for dryup since the biggest single-day drops don't seem to be correlated with DU.

From then, I follow the standard entry. If the stock has dropped a lot, you may wish to wait for a pullback or at least a pause on lower volume (5min chart) and then short into a the breakout. You'll miss a couple of trades this way, but you'll miss the nastier snap-backs also.

The last trade I took like this was COGO on the 18th. There was 10 minutes of heavy selling, a pause and then when it broke down, it broke hard. These don't come around very often, but once or twice a month you can catch a 10% single-day move.

 

[ulmer]

FTT comes earlier than FRV. By trading FTT, it is less likely to have all our old indicators (MACDHistogram, Stochastic) aligned at the old value set at the time of FTT. Do we need to redefine a set of indicator values for our daily analysis? Thanks.

 

[Pr0crast]

Quote from ulmer:

FTT comes earlier than FRV. By trading FTT, it is less likely to have all our old indicators (MACDHistogram, Stochastic) aligned at the old value set at the time of FTT. Do we need to redefine a set of indicator values for our daily analysis? Thanks.

The indicators at your disposal for FTT identification thus far are: volume, gaussians, and channels. The rest (macd,stoch,etc) as I understand them are all lagging indicators and will only give you HOLD signals after you are already in it. For your daily analysis, I would just study/draw channels and gaussians.

 

[Monkman]

Quote from rickylc:

a little clarification on the previous post.

ININ bounced off the IT RTL which I had drawn @ 18.69, the low price so far for the day however is 18.61

I'm probably early on this, but if it continues to behave I'm looking at a target price around $23.00

Nice pick up on ININ. Only thing I would want to see tomorrow is a confirmation of a strong black bar that closes up out of the blue tape. When that happens I will be buying.

- Monkman

 

[rickylc]

I added to the ININ position yesterday @ 19.05 on the formation of the pt.3

looking good so far

 

[johnpinochet]

23 Jan 2007

My DU stocks on today's watchlist were:

ACOR BITS DTLK GIGM HWCC MIKR NSTR NVEC OMRI REDF SIM

Note that I didn't have time to do the final culling via the fundamental factors so some of the above may not be 100% correct, and HWCC is there simply because it was mentioned here by Spydertrader. On a side note, I find maintaining some that don't make the cut is actually a good thing as I am able to observe their intra-day behaviour as well. It leads to a nice comparision and contrast study.

In any event, viewing a daily, 30 min and 5 min made the choice clear for which one to focus on today. GIGM. Although HWCC and SIM were close seconds.

All three of those could have been day traded at substantial profit today, and I think GIGM could be held for the standard X number of days of the beginner method. In any event, I focused all of my efforts on GIGM. Had I been able to watch all day I probably would have exited half at the test of yesterday's high for the first time, i.e. somewhere near 10.80.

 

[Spydertrader]

I expect to post an update on the Tucson Meetings, as well as the Video Files to be made available in the near future.

- Spydertrader

 

[billp]

Congrats on your trade

1 question on trade management . You initially bought Inin at $18.8 on 19/1/07. On 20/1/07, it actually crossed below your entry price.

Did you take profits before price went below your entry price, partial profits or do you not adjust your stop loss (even if stop loss is below the entry price). Always interested in how to manage a position. Thanks.

Quote from rickylc:

I added to the ININ position yesterday @ 19.05 on the formation of the pt.3

looking good so far

 

[rickylc]

Quote from billp:

Congrats on your trade

1 question on trade management . You initially bought Inin at $18.8 on 19/1/07. On 20/1/07, it actually crossed below your entry price.

Did you take profits before price went below your entry price, partial profits or do you not adjust your stop loss (even if stop loss is below the entry price). Always interested in how to manage a position. Thanks.

This trade is a bit of an experiment in trading the FTT for me using a stock I have traded several times and have relative confidence in. I have not taken profits yet.

In retrospect, the most profitable trade management would have been to close the position EOD Friday (my usual mode of operation) and re-enter yesterday when price approached my original entry. I'm assuming that is the date you are referring to as 20/1/07 was Saturday.

I added on Monday because it appeared to be the formation of a pt.3. The little selloff yesterday morning caught me a bit by surprise, but the price turned before my original signal point of 18.69 and showed rapid improvement thereafter. As I had already established a full position in this stock, I didn't add any additional shares on the morning dip.

Close yesterday was relatively strong so I'm looking for continued price and volume improvement today.