Spydertrader's Jack Hershey Equities Journal

2005-08-12, Friday - Lists

Hershey Wealth-Lab Chartscript Culling Methodology
Hershey Equities Rank V 3.0.0 / Qcharts Culling / Stocktables.com Sort

Hot List

DPTR FORD SNHY

Dry Up Stocks

CMT DCAI FORD RADS RTSX

Hot List Stocks Scores

DPTR - 7
FORD - 5
SNHY - 0

Dry Up Stocks Scores

CMT - 5
DCAI - 0
FORD - 5
RADS - 1
RTSX - 0

Keep an Eye on These Stocks

DPTR (Attached)

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=814276>

 

2005-08-12, Friday - Correction

Score for DCAI should read 5 and not zero as is written above. I apologize for any confusion caused by my error.

- Spydertrader

 

2005-08-12, Friday - Update

This morning, I monitored one list of stocks (5 total equities): Those equities from our daily Hot List and from our Final Universe List finding themselves "In Dry Up."

Dry Up Stocks

CMT DCAI FORD RADS RTSX

Our system generated two possible trade signals from the list of five Dry Up Stocks when actual volume exceeded calculated "Low Band" Dry Up Volume prior to 11:30 AM.

Dry Up Stocks Triggering Signal

RADS RTSX

Dry Up Stocks NOT Triggering Signal

CMT DCAI FORD

RADS did not show price improvement ($11.47) at time of signal generation (10:10 AM). In addition, MACD Histogram showed a negative return (-.1469). Also, The Stochastic Indicator fell below desired levels (4.48). As a result, I took no action with respect to trading RADS.

RTSX did not show price improvement ($25.73) at time of signal generation (11:19 AM). In addition, MACD Histogram showed a negative return (-.0737). Also, The Stochastic Indicator fell below desired levels (27.78). As a result, I took no action with respect to trading RTSX.

- Spydertrader

 

Did anybody take the RADS short?

- The New Guy

 

If one had an interest in shorting RADS this morning, The System triggered a short at 9:44 AM Eastern time. With a short trade, you look for 25% pro-rata volume before 10:00 AM. (Pro-rata uses Average Dry Up Volume and not Low Band for its calculations.) Price had already fallen and held at $11.74 USD. MACD showed a negative return ( -.0557), and The Stochastic Indicator also fell within our desired negative parameters (3.23). Lastly, RADS did not appear on the NASDAQ Reg SHO Threshold List this morning.

- Spydertrader

 

Has anyone been taking shorts on this? There was an IIG one a few days ago that would have worked great as well.

Does shorting of these work consistently?

 

I haven't been shorting yet, but the short (no pun intended) time I've been watching the short set ups, they seem to work out rather well. The shorts seem to have more FBO's or break evens (IMHO) but when they hit, the seem to travel further and faster.

Just some general observations on a very limited sample set.

- The New Guy

 

I regularly short Hershey Stocks. I rarely post the results of my short trades to the Journal as the methodology used for shorting did not arise out of Jack's posts. With the advent of Reg SHO and Threshold Lists, stocks I would want to short become unavailable from time to time (DCAI and FORD today). As a result, I have fewer shorts now than I did several short months ago.

- Spydertrader

 

So you shorting Hershey stocks isn't the same as you were doing earlier in the journal?

 

If you look at the results file I occasionally post, you'll notice very few of the "Journal Trades" include shorting Hershey Equities. The short trades I have posted resulted from discussions such as this one. However, I have no plans to include the RADS short in the Journal results. The methodology I use for shorting remains the same as I used earlier in the Journal.

- Spydertrader