Spydertrader's Jack Hershey Equities Journal II

Spydertrader · Dec 8, 2005

Quote from martys:

Mark, I thought you are crazy at first because I got DCAI KNDL NFLX running the Dry up script last night. But I just ran it again just now with the same final universe and sure enough I got BTUI KNDL NFLX. I am gonna start doing homework in the morning.
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Before running the Wealth-Lab Chartscripts make sure to double check the data to insure Wealth-Lab.com has updated their datasource. Such a practice often avoids the errors to which you refer.

- Spydertrader

thenewguy · Dec 8, 2005

Spydertrader,

Does the desktop version of WL suffer from the same data-delay problems as the website version. Also, does it have an issue of running too many scans like the website version?

Thank you for your input,

- The New Guy

Spydertrader · Dec 8, 2005

Quote from thenewguy:

Does the desktop version of WL suffer from the same data-delay problems as the website version. Also, does it have an issue of running too many scans like the website version?
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Wealth-Lab Developer (Desktop Version of the Web Site and also known as Wealth-lab pro from Fidelity) utilizes an independent datasource. For example, I use QCharts as my datafeed. Esignal is another option. You can also import data using a Quotetracker adapter, or using metastock files. As such, any data delays caused by the Wealth-lab.com datasource providers would not have an impact on Wealth-lab Developer. I run my Final Universe Scan each day around 4:15 PM - 4:30 PM Eastern Time. To run the daily Hotlist scan, I need to wait until Stocktables.com updates its data (around 8:00 PM Eastern Time) later in the evening.

In addition, no such "too many scans" warnings occur using Wealth-Lab Developer. Only the speed and memory capacity of your computer limit the functionality of Wealth-lab Developer.

I recommend giving Wealth-Lab developer a test run to see how you like it. You can also receive a free month of Qcharts data as a datasource. Anyone interested in obtaining the free month of Qcharts should send a PM to SVRZ (he often posted in the Original Journal) for additional details.

I hope that helps.

- Spydertrader

thenewguy · Dec 8, 2005

Ah, I wasn't aware it used outside data sources... that's fantastic. Thanks for the info.

- The New Guy

mrpace · Dec 8, 2005

Don't you have to have an account at Fidelity to get the desktop version of Wealth-Lab these days?

ilganzo · Dec 8, 2005

Quote from mark1:

I cannot help you on this one, anyway on the subject of stops , have you had the opportunity to read this doc.(If I remember correctly , it was posted by SpyderT)
I found it really interesting and easy to understand (you know ,English not being my language and Mr Hershey can be quite cryptic sometimes ) .
What's more , I think the rules description for stops can be coded in WL.
This weekend if I have time I'll try to code them and I'll post the script here.
Don't hold your breath though.
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mark1, thank you for your post. I found the document helpful.
I'll look to do some work with stop losses calculation in eSignal too.

Spydertrader · Dec 8, 2005

Quote from mrpace:

Don't you have to have an account at Fidelity to get the desktop version of Wealth-Lab these days?
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Ahh poor Horatio. There are more things in heaven and earth than are dreamt of in your philosophy.

- Hamlet

dougcs · Dec 8, 2005

Took a day off today; and it looks like it was a no hitter for JH trades.

And, I had a irrelevent thought: Are followers of this Journal Arachnophiles?

Doug

Spydertrader · Dec 8, 2005

Quote from dougcs:

Took a day off today; and it looks like it was a no hitter for JH trades.
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With a lower number of Dry Up Stocks to monitor, such days of no signals remains inevitable. Tomorrow, I have six stocks to monitor, so I am anticipating at least one or two signals.

Quote from dougcs:

And, I had a irrelevant thought: Are followers of this Journal Arachnophiles?
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Quite the wordsmith! When I first started trading, I only traded the large ETF's - DIA, SPY & QQQ (now QQQQ). Hence, I chose the name associated with trading spyders.

- Spydertrader

ilganzo · Dec 8, 2005

Quote from Spydertrader:

I didn't have REDF in my list until yesterday, so any opinion provided here should be viewed from a perspective of 'hindsight' analysis. Looking back over the past six months, we see that REDF normally completes its natural cycle quite quickly. Most of the cycles complete the upward portion of the cycle within 4 days or less. Although REDF quickly moves through the different phases of its natural cycles in a relatively short period of time (compared to a normal 6 - 8 day cycle), the equity has continued to trend upward remaining in the channel for the last 20 or so trading days. (See attached Daily Chart.)

Two days ago, REDF completed the downward trend in price appearing to flatten out by EOD. REDF evidently reached an area of support as we see price bouncing off any attempt to drive the price lower. The appearance of the relatively long 'tails' (compared to actual candle body size) on the final few bars of the Monday (2005-12-05) chart indicate to me buyers coming into the market each time price attempted to fall. The following morning (Tuesday, 2005-12-06) we see an increase in volume driving a rapid increase in price. In addition, we have our confirming indicators (MACD Histogram, and Stochastics (14,1,3) turn positive. Early in the morning (almost immediately) we see MACD turn positive, and we see Stochastics showing positive divergence. Anyone following this stock at that point in time would have recognized this chain of events as a clear signal to go long. (See Attached 30-min chart). REDF easily achieved FRV levels of volume by EOD. In addition, volume also exceeded Peak Levels possibly creating a concern over to hold or sell.

From around noon EST through late Wednesday (2005-12-07), we see price take a pause and trade within a range. Although price did trade within a relatively tight range, we see attempt to drive price lower, but once again we see buyers come in to support the stock at a lower price. As a result, we see price bounce off the 20 period SMA and continue to trade within the earlier established range. Once support had been established, we see additional buyers come in near the end of the day to drive price even higher.

Based on the history of REDF and the decrease in volume from the previous trading day, we can anticipate a short term trend reversal. As mentioned above, REDF runs upward in price in a relatively short period of time (often less than 4 days). However, rather than attempt to 'predict' the future outcome of price, remaining cautious, looking for the telltale signs of pending price reversal, while at the same time, continuing to ride out the current wave of price increases may prove to be the most prudent choice.

I hope you found the above helpful.

- Spydertrader

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=919184>

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=919185>
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Spyder, very good analysis, it clears some of the doubts I was having recently.
Although that green circle on the 30min chart doesn't look perfect...