Glad to know you remain focused on learning Jack Hershey's Methods. I look forward to seeing the results of your efforts, and encourage the participation. - Spydertrader
The 11:00 AM cutoff has passed without providing a trade based on our criteria for entry. No trades for today. Since we have no trades to monitor (from previous trading days), time to unplug and pursue 'non-trading' activities. Always good to have a balance in life. I normally create my lists around 10:00 PM Eastern Time for the next trading day. I will continue to make them available around that time each evening. A Note on GMAI: Since we strive to reach a goal of 10% on each trade we take, keep track of GMAI to see if we WOULD have reached our goal. At $12.23, we would need the price to reach $11.00 before rising to $12.84 (stop loss) within 4 days time. As always, the format of this journal encourages participation and comment. I will check back to answer any questions or concerns after the close. Enjoy the remainder of the day. - Spydertrader
Interesting to note that while ANIK almost reached DU volume by 11:00 - 15,389 by 11:00 vs. 17,040 DU - it only did 5,500 shares over the next three hours. So, those tempted to jump in early (especially if price is going up) be warned! Still waiting to see if it makes FRV by the EOD. I assume you (Spydertrader) check FRV at EOD even if they don't trigger by 11:00? If that happens, do you enter the next morning provided your indicators confirm? Thanks.
Attached, one will find a small macro that will automatically sort "StockTables.com" list and group names into 1, 0, 7. I stress this will only work for stocktables list. This macro is not "idiot proofed" and that's a technical coding term not intended to insult. I simply do not have time to full proof my code for erroneus input. In any event. This will be the first in a long list of modules which I am feverishly working to throw together. Also note, to exactly replicate Spyder's list, you will have to set the settings for RS to 90+ and EPS to 80+. I determined this by reverse engineering his hotlist so that we can all be on the same exact page... Regards... G33M4K
In trying to create consistency, I had noticed over the weekend that a list that is too short will yield overlapping between groups. I couldn't decide whether there was a need for refining this element. My previous macro identifies overlaps between groups 0 and 7 and goes as far as to distinguish them. However, in an attempt to understand the nature of this, I was curious as to whether this is the reason why Jack specifies relaxing the RS & EPS values to get a list of 100+ names. On several occasions, Jack mentions starting with a list with more than a 100 names. Curious enough, relaxing the EPS/RS to 80+/80+ generates nearly an entirely different universe of nearly 160 names and significantly different hotlist. Is this a trivial point? Or is relaxing the EPS/RS greatly decreasing the quality of names to choose from? Second (I know this is not required), if I compare the groups score to the actual P,V,A/D score using stocktable's data, I often find a disparity between group and PVA/D score. Intuitively over the previous day, Group 7 is exhibiting an increased Price, Increased Vol, and Accumulation in all non-overlapping cases. In other words, PVA/D scoring supports the labeling of these names as a 7. However, groups 1 and 0 show disparities between their group identity number and score yielded from evaluating its P,V,A/D. My question here is whether or not a value of P=1 or V=1 indicates a TRENDING as opposed to absolute increase of the particular element. If none of this is relevant, I am willing to accept that fact and strictly adhere to the rules. Regards.... G33M4K
I think the ultimate goal is to be trading the highest money velocity of a trend. The stocks you buy should break out and either make a pt 1 to pt 2 traverse or a pt 3 right to left side of channel traverse. Personally, I like to know the width of the channel and prefer the latter of the the 2. Your hotlist should be for timing these half cycles. Just my opinion.
Unless I have stocks to monitor from a previous day, I walk away at 11:00 AM if no signals to trade occur. I might check back after the close to see what happened with trades I did NOT take (for failing to meet all the necessary criteria). Today, I looked at the chart of GMAI after the close and noticed a few things. First, price has continued to fall, but both MACD and Stoch turned around in the last hour. Is this a change in trend? or short covering? Second, volume continued to decline in pace until around 1:00 PM when volume increased again. Is this the P,V relationship at work? The market should provide the answers to these questions tomorrow. Keep in mind that we want to see actual volume exceed DU Volume by 11:00 AM. It is rare to have a stock that makes FRV by EOD without making DU Volume by 11:00 AM. From Don Cameron's MSN Web Site we see the percentage of volume (on average) that occurs at times throughout the trading day. 10:30 a.m. 0.25 11:15 a.m. 0.33 12:15 p.m. 0.5 1:15 p.m. 0.6 2:15 p.m 0.7 3:15 p.m. 0.9 With a third of the volume in any stock occurring by 11:15 AM, it follows that we should see DU Volume by 11:00 for stocks making FRV by EOD (FRV = 3 times DU). I hope the above information helped. - Spydertrader
You correctly interpret Jack's teachings when it comes to setting the RS and EPS levels at the stocktables.com web site. He does often advise altering the RS and EPS settings, however, setting RS and EPS too low allows for the possibility of choosing stocks that aren't the best candidates. The goal should be to obtain a list of 'around' 100 stocks. It is possible to alter the settings each day to obtain a list close to 100. Too few a number of stocks, as you determined, creates overlap. Too many stocks creates an entirely different Hotlist containing less than superior candidates. In a previous post DKM, observed similar behavior with the one's and zero's lists from the stocktables.com web site. For our purposes, the differences between list score and actual score matter little. Although Jack advises "buying stocks as they move from a score of zero to seven," we are really looking for stocks that provide, as Nwbprop states, "the highest possible money velocity." With the stocktables.com web site, we approximate the scores. Jack's PVAD formula (attached) provides a stocks 'actual' score. Ideally, we would buy stocks with a score of zero, that had DU volume (or less) the previous day, hit DU Volume by 11:00 AM on the current trading day, had positive MACD and a Stoch above 75. unfortunately, the 'ideal' situation does not always exist. According to my understanding of Jack's PVAD Formula, a score of 1 indicates an increase over the previous day, and a score of zero indicates a decrease over the previous day. I hope the above information helped. - Spydertrader