Spydertrader's Jack Hershey Equities Trading Journal III
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Today I traded SNCR. The trade did not work, and I was very cautious with it since today was a fed day. Volume was running at a good pace when I entered the trade, the MACD histogram was positive on the 30 min fractal, stochastics were above 80 at the time of entry, and the stock was trading at a new alltime high. I like the trade setup, with the possible exception of the stock already being up more than 5% when I entered the position. This is simply a trade that didn't work for me. The executions are attached.
thenewguy and I were chatting about GRRF and GROW today, but I decided to just watch both equities after taking my initial hit in SNCR. A trader would have faired much better than I did today if he/she had traded one or both of those securities in addition to SNCR.
I did make a 3 different trades in SIGM today. The stock is not a JH trade per say, but I did make $1255 in the security today. All trades were made after the Fed announcement at 2:15. In my final trade, I took a 1000 share position in the stock at 30.50 at EOD. I then checked the news and discovered that the stock had its earnings announcement after the close. I went to sell the stock at 30.50 in the afterhours session when a bid appeared half a point higher at $31.00. I hit the bid at $31.00 since I don't know anything about what the company was going to say in its earnings release. At least check, the stock is trading down at $29.65.
The moral of the story: Always check for pending earnings announcements in your overnight positions. I got EXTREMELY LUCKY that I managed to get out of the position at a profit and avoid a big loss.
I hope you find the information useful.
- Huskydog
thenewguy and I were chatting about GRRF and GROW today, but I decided to just watch both equities after taking my initial hit in SNCR. A trader would have faired much better than I did today if he/she had traded one or both of those securities in addition to SNCR.
I did make a 3 different trades in SIGM today. The stock is not a JH trade per say, but I did make $1255 in the security today. All trades were made after the Fed announcement at 2:15. In my final trade, I took a 1000 share position in the stock at 30.50 at EOD. I then checked the news and discovered that the stock had its earnings announcement after the close. I went to sell the stock at 30.50 in the afterhours session when a bid appeared half a point higher at $31.00. I hit the bid at $31.00 since I don't know anything about what the company was going to say in its earnings release. At least check, the stock is trading down at $29.65.
The moral of the story: Always check for pending earnings announcements in your overnight positions. I got EXTREMELY LUCKY that I managed to get out of the position at a profit and avoid a big loss.
I hope you find the information useful.
- Huskydog
Update on NVEC. Attached below is the chart.
It appears we have an FTT from yesterdays black bar. We see very high volume, with low volume today followed by no price appreciation. The gaussians are going b/\r but now that we are in the range of dry up levels, we could have reverse (incr red) that signals a change in direction. At this point we will have a diagonal tic tack toe formation going downward. Which is basically the transition from one channel to the next.
Since the path of least resistance is upward, shown by the channel and gaussians. For the people that are still long, we want to see a b/\b with FRV black. If this happens the volume will signal another confirmation that we are headed to the top of the channel.
If you look deeper into the chart and switch it to an hourly time frame, you can see that the last bar is really a red bar, and not a black one. There you see B/\R. So as you zoom out back to the Daily you could say we have B/\R already, red being todays bar.
When stocks go into DU it allows us to see key signals. It marks the transition from one gaussian formation to another, and tell us how the channels should look thereafter.
I think I am on the right page with this stuff. Comments would be appreciated.
- Monkman
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1406807>
It appears we have an FTT from yesterdays black bar. We see very high volume, with low volume today followed by no price appreciation. The gaussians are going b/\r but now that we are in the range of dry up levels, we could have reverse (incr red) that signals a change in direction. At this point we will have a diagonal tic tack toe formation going downward. Which is basically the transition from one channel to the next.
Since the path of least resistance is upward, shown by the channel and gaussians. For the people that are still long, we want to see a b/\b with FRV black. If this happens the volume will signal another confirmation that we are headed to the top of the channel.
If you look deeper into the chart and switch it to an hourly time frame, you can see that the last bar is really a red bar, and not a black one. There you see B/\R. So as you zoom out back to the Daily you could say we have B/\R already, red being todays bar.
When stocks go into DU it allows us to see key signals. It marks the transition from one gaussian formation to another, and tell us how the channels should look thereafter.
I think I am on the right page with this stuff. Comments would be appreciated.
- Monkman
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1406807>
Another possible scenario for you to consider. NVEC currently finds itself within a lateral channel.
Today's Price Bar basically shows as an 'inside bar' - having yet to break either side (high or low) of the previous day bar (Yellow highlight). Decreasing Black Volume, when viewed in an up trend, usually creates a lateral price movement. Today, we see exactly that. Price remained 'inside' the previous bar - failing to move higher. Instead of an FTT, we might have, what in futures, we refer to as a 'flaw.' Yesterday, price swiftly headed higher, only to reverse by EOD. Today, Price opened slightly higher over the previous day close and continued upward - pullingback by EOD. While certainly possible we witnessed an FTT forming today, tomorrow should indicate the true nature of Today's Price Bar. In other words, Price could still head higher tomorrow on either decreasing or increasing black volume.
- Spydertrader
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1406973>
Hi all,
This is my first post, and I am still in the beginner level tracking this thread and Future thread to understand the price/volume correlation.
I guess this NVEC chart is really hard to understand for beginners like me.
Because, to me, it look like a series of CCC since 2/26 and centering to $26.50 line (pink line in my chart).
So, my position would be "stay out" until the centering ends.
The same reason, I wouldn't take a position of IAAC.
But, ddude and Monkman may be right.
I just would like to know the difference or where to look to make a right decision.
My pick for today was OMTR.
It's in the stocktable choice and ranked since I have started ranking.
And I just want to say thank you to Jack and Spydertrader and everybody making contribution to this and other threads.
I learned a lot from your writings and charts, though still long way to go.
I hope I am heading toward right direction.
-- UriKai
This is my first post, and I am still in the beginner level tracking this thread and Future thread to understand the price/volume correlation.
I guess this NVEC chart is really hard to understand for beginners like me.
Because, to me, it look like a series of CCC since 2/26 and centering to $26.50 line (pink line in my chart).
So, my position would be "stay out" until the centering ends.
The same reason, I wouldn't take a position of IAAC.
But, ddude and Monkman may be right.
I just would like to know the difference or where to look to make a right decision.
My pick for today was OMTR.
It's in the stocktable choice and ranked since I have started ranking.
And I just want to say thank you to Jack and Spydertrader and everybody making contribution to this and other threads.
I learned a lot from your writings and charts, though still long way to go.
I hope I am heading toward right direction.
-- UriKai
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