Spydertrader's Jack Hershey Equities Journal II

Is this method about finding when the smart money have bought up the float?

 

It's definitely about locating buying interests but sometimes it's just us (momentum traders??) and noone else (not institutions) then the support will get pulled.

 

I saw IRIS but it is too damn thinly traded. What's your opinion on trading such stocks?

 

Plenty of liquidity with IRIS. Level II currently shows numerous trades in the 800 to 1000 lot range. As long as you didn't want to jump in with a 10,000 share block trade, IRIS's Average Daily volume of 215,000 should provide you with plenty of opportunities to enter or exit smoothly.

- Spydertrader

 

Thanks Spydie. I think it is a good do but I will just watch it this time. Good trading!

 

let's see if my calculation and understanding of the method are correct
I'm papertrading atm.

so far:

BOOM: discarded because of gap up > 5-10%

IRIS : IB showed at open Vol >30010(lower band) , MACD positive and Stoch > 80 (NB your reading of indicators , because of different data feed might vary)
So it was a buy @ 25.60

correct?

 

Many traders already had BOOM in their holdings due to a buy signal generation last week. However, assuming you only began monitoring The Hershey Equities today, then yes, avoiding large gap open stocks reduces one's overall risk (At least according to my own personal experiences trading these methods). Having said that, Jack scans for such gappers and I believe does trade them depending on certain circumstances. He could better explain the circumstances surrounding his decisions on gap open stocks.

According to your data and price point listed above, you correctly evaluated IRIS as a buy at $25.60 USD.

- Spydertrader

 

PETS does not have a signal but I bought PETS @ 12.47 while stochastics in the 60. I want to see if there is follow thru. I am a dog owner...

 

Thanks Spydertrader

Just checking if I'm tuned

Yes I knew the gap rule is yours, thanks for the reminder .

 

Thanks