Spydertrader's Jack Hershey Equities Journal II

Purchased 400 shares of NCTY @ 30.00 USD

- Spydertrader

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1049300>

 

Still holding all shares of NCTY. Maybe third try was the charm.

- Spydertrader

 

Exited the FTEK position @ 15.72 for a 2.81% gain.

 

Nice job. Keep up the great work.

- Spydertrader

 

Thanks Spyder and thank you for the links over the weekend in various threads.

 

I just came up with the following initial universe using the MSN Money Deluxe Screener.

I entered the following criteria:

12 Month RS > (or equal to) 90
Latest Fiscal EPS > (or equal to) $0.90
Last Price < 50
Last Price > 10

I was left with 104 stocks which I attached now as my initial universe... did I do this right?

What time period of RS do I use?
What type of EPS do I use? (can do 12 Month EPS Continuing Operations, 12 Month EPS Total Operations)

Was it right to set the EPS > $0.90 ??? I know in the initial post from Spyder it said to make it > 90, but I figured not too many companies earn $90/share per quarter

I'm 10 pages down and hoping to get through the first journal when possible.

How much time should I take to read the 1st journal? (I can read it all in a week if I spend each day or I can do it for 2-3 weeks)

Some more questions....

What exactly is Dryup volume? Do any of the scripts automatically calculate it from the site? How would I track it?

Spydertrader posted

“From Don Cameron's MSN Web Site we see the percentage of volume (on average) that occurs at times throughout the trading day.

10:30 a.m. 0.25
11:15 a.m. 0.33
12:15 p.m. 0.5
1:15 p.m. 0.6
2:15 p.m 0.7
3:15 p.m. 0.9”

Wouldn’t this mean that the highest increase in trading occurs between 11:15-12:15 pm… why not wait until 12:15 pm?

Also, does anyone have a listing of programs/websites I should plan on using for this?

Thanks

 

The RS ranking in stocktables isn't the same as RSI. RS ranking is how a stock's price action stacks up against all others. Then they're ranked in percental ranks.

 

Thanks for catching my typo,.... I went back to my screen and I did it by 12 Month RS.

 

Unfortunately, both your RS and EPS approaches are incorrect.

RSI is the stocks strength against itself for a period of time. This is different from the RS (Relative Strength) that is used by STocktables and Investor Business Daily.

From stocktables:

"This powerful screen compares relative price performance over the last year against all stocks, on all exchanges. An RS rank of 80, as an example, means that, based on price performance, stocks screened this way beat 8 out of 10 issues in the market in the last 52 weeks"

Also, taking an eps above 90 cents is not the way to handle EPS. In this case an EPS of 90 or higher means it has been "ranked' as having an EPS profile among the top 10% of the companies in the market. It has nothing to do w/ the actual EPS amount per stock.

Again, per Stocktables help screen:

"A measure of earnings performance, this indicator is an unemotional quantification of Earnings as compared to ALL 10,000+ stocks in the tables. As an example setting the screen for 90 would mean that, on an earnings basis, you only want to consider those stocks in the top 10% for your screen."

When I started working with this thread/system I tried to come up w/ other free sources of this same data but ultimately it was easier just to pay the $99 to belong to STocktables for the data.

Hope this helps

Mike

 

The Stocktables.com web site provides a two week Free Trial. I recommend using that Two Week Free Trial in order to understand the process of creating lists.

I strongly encourage you to read through Journal One and the attached documents before attempting to use alternative methods for creating a Universe of Stocks (same as I did last night in the PM I returned to you).

When you mentioned how daunting the task appeared, I explained how taking shortcuts insured shortchanging your profit opportunity. No shortcut exists which permit anyone to achieve quick and easy sucess in this field. Success requires hard work, and some modicum of effort on your part.

You have a decision to make:

1. Fly to Tuscon, Arizona and attend the IBD Mettings in person to learn from Jack Hershey directly (The Group meets again this Thursday).

2. Read through the material provided in order to build a strong foundation for trading these methods. Follow the directions provided, and ask questions when you need clarity.

3. Skip all that 'Learnin' Stuff' and proceed directly to asking questions in hopes that others who already put in the time and effort will somehow provide you the 'easy way out.'

4. Forget the whole thing.

The choice is yours.

- Spydertrader