Spydertrader's Jack Hershey Equities Trading Journal III

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My favorite of the day:

SPAR

unfortunately, i'm still waiting on the sideline as i want to see a more stable market condition since yesterday was only the first day of recovery.
 

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Thank god the market has settled down and we can get some trades on! One of the good things about trading and sleeping at the same time is that you can't 'bend' the rules to trade.

In NVEC @ 25.04.
 
Quote from chiefraven:

My favorite of the day:

SPAR

unfortunately, i'm still waiting on the sideline as i want to see a more stable market condition since yesterday was only the first day of recovery.
More...

These market conditions are perfect. Stable = bad. I am hoping that SPAR falls to the support line in the tape, which at that point should be a good buy. Then from there we want it to hold, and move within the tape. B/\R

- Monkman
 
Hi there spydertrader.

Man, I go away for a coupla months and y'all are using different screening tools (no more stocktables.com)!

I have a basic question about the Hershey culling criteria (price>10 and <50, volume>200,000, EPS > 0, 25%+ institutional ownership, etc.). Is the purpose of these preconditions just to have a shorter list for the WealthLab Hershey Equities Rank Scan? In other words, if WealthLab could easily scan the whole universe of stocks for Hershey rank, would you just do that?

I've found that my Fidelity advanced screener can filter on many of these criteria except for insider % ownership. But I'm able to get a list of about 160 stocks with the criteria I do use.

I'm a cheap b@stard and don't want to shell out the $100/month for QCharts. :cool:
 
Quote from Spydertrader:

For Beginner Methods, Rank still plays a fundamental role. After all, repeatability leads to profitability. However, the Advanced Methods (FTT's and Gaussians) work in any market on any time frame. As such, rank has a lessor role. Sometimes, the two methods intersect (an FTT forms on a Final Universe Stock). When this happens, one often hits gold.

- Spydertrader
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Spydertrader,

Are you saying that your current equities strategy involves perusing the 185 (or so) charts that pass your fundamental filter, looking for FTTs? You no longer make sure these stocks have Rank prior to trading them?

I just want to be clear on this since, in the past, you've made comments that led me to believe that Rank is the most important filtering criterion.

Thanks,
Jason
 
"For Beginner Methods, Rank still plays a fundamental role. After all, repeatability leads to profitability. However, the Advanced Methods (FTT's and Gaussians) work in any market on any time frame. As such, rank has a lessor role. Sometimes, the two methods intersect (an FTT forms on a Final Universe Stock). When this happens, one often hits gold.
" -spyder

if you're trading the beginner method, then you would still run the list through wealthlab rank scan...but if you're trading FTT, then i'm guessing you're only using ranks as a confidence thing... just as how we use the scores in the beginner method as another source to confirm about the possible candidacy of our stock.

this is what i have assumed.
 
Quote from stevegee58:

I have a basic question about the Hershey culling criteria (price>10 and <50, volume>200,000, EPS > 0, 25%+ institutional ownership, etc.). Is the purpose of these preconditions just to have a shorter list for the WealthLab Hershey Equities Rank Scan? In other words, if WealthLab could easily scan the whole universe of stocks for Hershey rank, would you just do that?
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We use The Hershey Culling Parameters:

Price: $10.00 to $50.00
Average Volume (65-day): > 200,000
Float: 5 - 60 Million Shares
EPS: Positive
% Insider Owned: > 25%
% Institutional Owned: > 25%

in an effort to insure a Universe of "High Quality Stocks" exists for a trader to apply the various iterations of The Jack Hershey Equities methodology. Using the Rank Scan against the entire stock market without culling for 'High Quality Equities' eliminates one of the system safeguards. While I have no doubt an advanced trader would not notice a difference in profitiability, I do not recommend the exercise for beginning level traders.

Of course, your mileage may vary.

- Spydertrader
 
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