Spydertrader's Jack Hershey Equities Journal II

Discussion in 'Journals' started by Spydertrader, Oct 4, 2005.

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  1. The process described below outlines my nightly activities with respect to trading the Hershey Equities System. I recommend viewing the methods as one of many possible scenarios which exist at various levels of trader experience. One should not therefore choose to view these steps as the only route to making money. Determining how one chooses to trade The Hershey Equities Methods involves many variables - individual trader experience level, risk tolerance, available tools, and discipline (to name a few). In other words, many ways exist to 'skin a cat.'

    Each night (after market close), I update my Final Universe (using Wealth-Lab Developer and a QCharts data feed) beginning at 4:16 PM Eastern Time. After updating, I then look for stocks which find themselves 'In Dry Up' based on their daily volume numbers. In addition, I look for stocks which show an 'Indicator Sequence' which matches a pre-defined subset of previously described formations (Bruno R, Rocket, etc). I note these stocks along with those 'In Dry Up' and move on to annotating my charts.

    I prefer to annotate the daily time frame in Wealth-Lab Developer, but also have annotations using Qcharts (for intraday monitoring). While annotating my Charts (in both daily and 30 minute time frames), I look for certain 'geometric' patterns (Pennants, Lateral Channels, Double Top / Bottom or Cup and Handle, etc.) and also note these for the next day. I observe where price sits in the context of the Intermediate Term (IT) and Short Term (ST) Channels. In short, I look for the tell-tale signs of an FTT (Failure To Traverse).

    Because everything one needs for information gathering exists in the various chartscripts or scans, I do not 'bulk' my charts over at the Clearstation.com web site. I never could 'eyeball' a chart to calculate Dry Up Volume. For that reason, I decided long ago to let the chartscript code figure things out with respect to Dry Up Volume. The closest I come to Jack's eyeballing technique involves seeing a chart where price has flattened (created a lateral channel) and volume also sits at an ambient level (doesn't really increase or decrease all that much from day to day). I note such a 'set up' as a possible, and monitor the next day (and over the next several days if the trend continues).

    Any stock within the Final Universe which fails to maintain a rank I place in a 'do not trade' list. While I do give that stock 30 days to reacquire rank, I do not trade the unranked stocks during that time frame (with rare exception). I review my 'do not trade' list also each night looking for that rare exception (a stock preparing to 'break out' in an effort to reacquire rank).

    Lastly, I look at the same parameters each night with respect to the PVAD relationship. What Score, What Volume, What Price do we see today and over the last few days with respect to trend.

    Once I have gathered all this data, I create a Watch List of stocks to monitor the next day and I import that list into Qcharts. In addition, I monitor the entire Final Universe intraday in case I may have missed something during my nightly analysis. Later in the evening (due to the web site not updating data at a consistant time each day) I download data from the stocktables.com web site. I cull this initial sort for fundamental parameters (price, volume, eps, float and insider owned shares) in an effort to look for equities to add to the Final Universe. Occasionally, I go beyond the stocktables.com 80 EPS and 80 RS parameters of rank, and search the entire stock market looking for potential candidates to the Final Universe. Most days, do not provide any additional candidates for entry into the Final Universe.

    One should notice a persistent theme throughout the above description: I spend far more time looking at charts, than crunching numbers.

    I hope you found the above information helpful.

    - Spydertrader
     
    #3271     Aug 26, 2006
  2. RXT

    RXT

    Spydertrader, I'm amazed by your ability and your patience to support and teach others in this forum.
    I must say, that your journal is probably the best I have ever come to read and it is really a pleasure to do so.
    Thank's a lot for your efforts and keep up the good work :)
     
    #3272     Aug 27, 2006
  3. In case anyone missed it, Jack started a Journal. His Journal looks to be a good place to obtain clarification on some of Jack's older documents / posts.

    - Spydertrader
     
    #3273     Aug 27, 2006
  4. 22 out my my 40 final universe stocks are in dry-up today, plus 2 on bruno buys.

    It's looking to be a busy morning.
     
    #3274     Aug 28, 2006
  5. Man, what happened to IPSU? It was looking good until 10:30 then pow, it fell like a rock. No earnings, no announcements that I could find.

    The hurricane affecting sugar cane crops maybe?
     
    #3275     Aug 28, 2006
  6. Definitely a possibility. I was kicking myself for missing it early this morning, but feeling much better now.

    - Spydertrader
     
    #3276     Aug 28, 2006
  7. Nice comeback on IPSU.

    - Spydertrader
     
    #3277     Aug 28, 2006
  8. "Nice" wasn't the adjective I was thinking of. More like "spooky".
     
    #3278     Aug 28, 2006
  9. Abuelo

    Abuelo

    SpyderTrader ..... it seems like everyone using this journal collects their IU from StockTables (ST).

    Is this the only source you use?

    Are there any advantages to using only ST other than everyone is working off of the same FU?

    Any disadvantages to using other sources?

    Thanks.
     
    #3279     Aug 28, 2006
  10. The Stocktables.com web site provides an easy way to obtain a list of High Quality Equities. By no means should one consider Stocktables.com as the only source for creating an Initial Universe. Gallas2 and others have used MSN's Deluxe Screener to create an Initial Universe. Others have used the IBD web site. Occasionally, I cull the entire Stock Market using the symbol lists available from the http://www.eoddata.com web site. One can download the symbol lists for free once registered (also free). The Stocktables.com web site provides the biggest advantage for someone new to The Hershey Equities System. Using the same source as all other new traders creates an environment where finding points of error is simplified. In short, using stocktables.com makes it easier for a new trader to follow along. I really see no disadvantage to using another source for the Initial Universe. If you have concerns over missing a certain stock, just ask me to post a copy of my Final universe, so you can compare. :D

    - Spydertrader
     
    #3280     Aug 28, 2006
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