Spydertrader's Jack Hershey Equities Journal II

I’m not sure if Gooch will agree with me, but I just updated my charts on XING, and I really like it. It is in an IT uptrend, and price has just bounced off the right channel line. MACD has just started to increase, and the stochastics are looking like they’re about to ascend. I’m putting this on my watchlist, and will jump in on a sign of unusual volume, along with the usual 30 minute signals.

Well spotted early Gooch

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1238470"></img>

 

Like a salmon swimming upstream, I decided to jump into DTLK this morning. I currently hold 400 shares to the long side.

- Spydertrader

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1238565>

 

Thanks for the explaination. So this is not a usual PVAD play that we wait for the dry up to happen before we jump in. Now I understand. Thank you.

 

It appears to me that CBEY showed a Buy signal based on the MACD and Stochastics at 0730. Anyone take this trade?

Thoughts?

 

(That was looking at the 30 min fractal)

 

(umm...1030 EST)

 

Personally, I only use the part of the Unusual Volume table which falls under the .22 percentage by 11:00 AM. I don't follow the other parameters at all. Specifically, you correctly observe how the numbers appear to contradict the older definitions of Dry Up, FRV and Peak. We know from Jack's writings, 3*DU=FRV and 2*FRV=Peak. As a result, I recommend continuing to use 'eyeballing' methods or the chartscripts for Dry Up Volume calculations. However, entering (either long or short) on Unusual Volume signals does prove profitable, so one should avoid tossing out the baby with the bath water.

- Spydertrader

 

I had circled CBEY last night on my list of stocks to watch for today. Unfortunately, I missed the signal, and didn't notice until price had already moved some 85 cents or so. Nice trade on your part.

- Spydertrader

 

i got in on DTLK too spyder, unfortunately i wasn't quite as quick on the trigger as you

10.62 entry

holding and waiting on vol again.

was also watching cbey, but not happy with the volume on the price move, yet...

 

Looks like a good trade; congratulations.

I have a question: Do you post all of your trades related to Mr. Hershey's methods or only some to illustrate them?

I'm trying to get a feel for how many trades in a typical day. It seems the basic method generates few trades and often goes a week or more without a trade. Do the alternate methods I've seen, such as Unusual Volume, Bruno's, trade more frequently?
Are the holding times in those trades intraday or may they last several days.

Thanks for you patience.

Seneca