2005-07-25, Monday - Update Actual Volume for both CMT and FORD reach FRV levels by EOD. In fact, Actual Volume for both equities exceeded Peak Volume levels prior to EOD. None of our remaining Dry Up Stocks reached FRV or Peak Volume levels by EOD. - Spydertrader
2005-07-26, Tuesday - Lists Hershey Wealth-Lab Chartscript Culling Methodology Hershey Chartscript Scans / Qcharts Culling / Stocktables.com Sort Hot List FORD Dry Up Stocks IIG MCRI PARL TASR UBET Hot List Stocks Scores FORD - 7 Dry Up Stocks Scores IIG - 0 MCRI - 5 PARL - 2 TASR - 6 UBET - 2 Keep an Eye on These Stocks UBET (Attached) <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=800034>
Hi again. I noticed that you entered into the FORD trade despite it having gone up in excess of 5% from the previous close which I have as 19.99 by the time the signal was given at 21.44. Have you abandoned that rule or was I misinterpreting it?
Capablanca said: Hi. I think Spyder has said several times that his own personal rule (not one of Jack's original rules) is to reduce risk by not buying stocks that gapped up by 5% or more. -ace
SpyderTrader, let me know if I'm bogging down your thread here! I thought this would be a nice addition. In the spirit of offering tools to folks who may not have the same tools SpyderTrader or others have I have created a screener on StockCharts.com's Advanced screener interface that does a pretty good job of checking for rank. I changed the threshold from 20% to 15% because the ROC indicator uses close to close rather than high to low range for % returns and its possible that something is lost in the translation. A suggested use for the results of this screen is to use IBD's watchlists (if you have them) to check the results for EPS and RS rank. You could also use this Stockcharts.com screens results in combination with the screen that I posted for MSNBC's screener to screen for fundamentals and RS Rank or at Reuter's Powerscreener. Just copy and paste the text from below into the 'Advanced User Interface' 'Scan Expression' box and hit 'Run'. Enjoy. Tonight's results from this Stockcharts screener (unscreend for RS or EPS) are: ANIK BCSI CKCM DCAI ENER FORD FOXH GEOI GMXR IPII JUPM MIX MNTA NETL NGPS NTRI NVEC PTC SNHY TRGL TZOO VPHM XWG. Notice a few familiar stocks? (hint: DCAI, ENER, FORD,GEOI,JUPM,NGPS,SNHY,TRGL) -ace Hershey Rank Checker [type = stock] and [country = us] and [daily ema(65,daily volume) > 100000] and [[exchange is NYSE] or [exchange is Nasdaq] or [exchange is AMEX]] and [[Max(26,ROC(4)) > 15] or [Max(26,ROC(5)) > 15] or [Max(26,ROC(6)) > 15] or [Max(26,ROC(7)) > 15] or [Max(26,ROC(8)) > 15]] and [[26 days ago Max(26,ROC(4)) > 15] or[26 days ago Max(26,ROC(5)) > 15] or [26 days ago Max(26,ROC(6)) > 15] or [26 days ago Max(26,ROC(7)) > 15] or [26 days ago Max(26,ROC(8)) > 15]] and [[52 days ago Max(26,ROC(4)) > 15] or [52 days ago Max(26,ROC(5)) > 15] or [52 days ago Max(26,ROC(6)) > 15] or [52 days ago Max(26,ROC(7)) > 15] or [52 days ago Max(26,ROC(8)) > 15]] and [[78 days ago Max(26,ROC(4)) > 15] or [78 days ago Max(26,ROC(5)) > 15] or [78 days ago Max(26,ROC(6)) > 15] or [78 days ago Max(26,ROC(7)) > 15] or [78 days ago Max(26,ROC(8)) > 15]] and [[104 days ago Max(26,ROC(4)) > 15] or [104 days ago Max(26,ROC(5)) > 15] or [104 days ago Max(26,ROC(6)) > 15] or [104 days ago Max(26,ROC(7)) > 15] or [104 days ago Max(26,ROC(8)) > 15]] and [ROC(7)!=-9999] and [Close >= 10] and [Close <= 50] and [EPS > 0] and [market cap <= 4000]
A stock needs to gap open by 5% or more for me to eliminate it from consideration. You use a different data source than I. As a result, volume levels for the two stocks you mentioned differ between your data source and mine. The slight difference places them on either side of the High Band of Dry Up Volume. As such, with the data source you used, both equities find themselves "In Dry Up." With the data source I used (QCharts), neither equity falls within Dry Up parameters. Jack Hershey did screen for stocks which gapped by 5% and 10%. However, you correctly attribute the Gap Avoidance Rule as my own method to reduce risk. Prior to beginning the Journal, my analysis revealed avoiding gap stocks improved profitability. I posted these results in the Hershey Thread started by inandlong: http://www.elitetrader.com/vb/showthread.php?s=&postid=573542&highlight=eliminating+gap#post573542 I appreciate your contributions, and have no doubt, many have found them beneficial. Keep up the great work. - Spydertrader
Spydertrader I have just started to read your journal and I am trying to understand the system your are following and I am reading the different links in the beginning of your journal. I think it's great stuff but I have some problems with understanding it. What I dont understand is if you pick the stocks from stocktables.com (the 30 stocks) and than divide them in different categories (0, 1, 7) are these numbers reffering to the cycle stages 0,1 and 7 that Hershey talks about? And if so How can you tell just by scanning (and not seeing the chart formation) that a stock is in that stage because what we want is stocks that are at the bottom or near the bottom of recent decline in an up trend with DU volume and than waiting for the move in price and volume to buy? Am I right on this?