Quote.com lists the Float for WFR ar 164,300,000 shares - well outside our optimal (5 - 60 million) float parameters. - Spydertrader
Not a bad signal for an overall down day. I missed it, but I hope some of you caught this late day trade. - Spydertrader <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1209077> Enjoy the weekend everybody.
I did put on a small positoin just because i wasn't 100%, still learning the ropes. I belive it had a score of two which from my understanding is the bearish cycle in Hersh.. but the way it was glued against 20 in the morning i was gonna get in as soon as it broke it.. with a tight stop... Looks like it rallied later because the stock was upgraded to a Buy but i am not complaining. Any thoughts? From techincal point of view was it a mistake to enter at this time?
Spyder, In looking at all of the prerequsistes around creating a FU, I have a question based on float. I know the existing setups work extremely well, to the point that further tweaking may not be necessary nor desirable. However I'll pose the question anyhow as it will help my own understanding. It's logical to like stocks with Rank. Based on the overall system, stocks which rank have a nice predictability about them. Stocks with rank cycle the 20% over 6-8 days irrespective of all other conditions, or criteria. Given we get these results from a ranked stock, what is the point behind dismissing stocks with a large float? Stocks with a small float are supposed to have higher volatility by virtue of the fact that there is not alot of stock available to be transacted in the event of swings, which produces greater volatility, and hence higher money velocity. However, we already know the stock is ranked, and by definition has a good money velocity, over the cycle periods. Am I way off the mark here? Or are there other benefits that a stock with a low float would have?
Based on the attached daily chart, it appears as if you timed your entry almost perfectly for a break out of the down channel. Nicely done. - Spydertrader <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1209445>
In a response to a question, I discussed Jack's rationale for setting the Float parameters in this post. In addition, I further clarified the float parameters here. Hopefully, the two posts linked above can provide you some clarity. Let me know if I can assist you further. - Spydertrader
Once again you point out so well how reading the journal is important to develop one's understanding of the methodology. It's clear (to me now), that once is not enough. Thanks for replying so quickly Spyder, have a great weekend. Cheers!
HSR and JSDA below $10 but setting up nicely. The overall market looks very dangerous though. Spydertrader do you see any good daily set ups on the short side? Or do you have any old charts of shorts that worked well. I'm mainly interested in seeing the type of set up you are looking for. What bothers me about this market is the similarities to 1994/1995 when the DJ transports corrected 27% with the DJIA declining around 12%. This time the DJ Transports have corrected 18% and look like they have more downside.
The following chart from earlier in the year shows an entire cycle for BNT - occurring on a daily time frame. Notice the divergence (in either direction) on the Stochastics (14,1,3) and notice how the MACD histogram fits into the mix. Intertwining below 20 and above 80 indicates a 'hold' pattern. Also, notice how price travels from uptrend to lateral and back down again only to repeat the cycle anew. FYI, I do not hold any short positions beyond a single day. As always, your mileage may vary. - Spydertrader <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1209800>