Spydertrader's Jack Hershey Equities Trading Journal III

There was a fast stoch 50 crossover on the 30 minute chart yesterday afternoon with increasing volume. This is an early warning of a potential BO the next day, if you were monitoring it.

Focus on the ones that meet your criteria.

 

In Journal 2 Spyder describes a feature on his charting system called "unusual volume" that can be monitored for additional volume signals. I believe this is an intermediate level sort of trade signal. I'm not certain if SNCR would have qualified as having unusal volume at the time of breakout since I don't have access to a similar feature, but I believe that it probably would have. A review of Journal 2 would probably be helpful - I know that I plan to do so.

BTW - I think that ROCM also would have qualified as having unusual volume today - again don't know for certain. Both ROCM and SNCR moved much higher late yesterday afternoon on higher volume. Given that yesterday was so nasty, this may have been a sign to watch these stocks today.

 

I have found "unusual volume" to be very helpful. If you use Qcharts, it comes as a pre-defined indicator you can add to any watch list. If you don't, it's simply the % of today's volume vs the 65 day moving average. Attached is something you may find useful. However, I am certainly NOT trying to discourage you from reading J2....

TNG

 

Thank you, this is very helpful.

Angie

 

Could you run down the number by number basis of how you got into this trade or would have got into this trade with Unusual Volume based on SNCR's volume int he first half hour. I understand the meaning of unusual volume but with regard to DU being .25 and FRV being .6, and peak being 1.8. Im not sure what this means and what its purpose is on the chart and/or for monitoring/enterign a trade. Also could you note what you do with regards to MACD and Stochastics at the time of entry according to unusual volume. I know its probably very simple but I dont want to do anything without being 100% sure of what I am doing.

 

I would love to, but I did not trade SNCR. I am not getting long any stocks until the dust settles, I have been essentially flat since monday.

As for the unusual volume, I simply check it based off of those values for each half hour interval during the day, and mark where it will *probably* end up at the close. If it's gunning for FRV and ended in DU yesterday that's a signal for me to look at the rest, chart pattern, and all the other hershey criteria.

For those channelers out there, have a look at the weekly SPY chart. Is the correction over? Next week will be interesting.

TNG

 

Final Universe Additions

VSR

- Spydertrader

 

If any of you cull the entire stock market without Q-charts, you may find this spreadsheet useful. I augmented the “cull stocktables” spreadsheet posted back in journal 1 to automatically cull the NYSE, NASDAQ, and AMEX exchanges with the data found at eoddata.com.

Step 1: Download the data at eoddata.com for the 3 exchanges.

Step 2: The files will be text files and we need them as spreadsheets so heres how to change them. Open excel, select open file, change it to list all types of files, and open the “NYSE” file you just got from eoddata.com. A “text import wizard” box pops up, check “delimited,” hit next, check “comma”, hit finish. Now the text file should appear as a spreadsheet.

Step 3: Copy the symbols (you can just click the A column and it will automatically select them all) and paste them into the A column of the “NYSE” page.

Step 4: Repeat step 2 and 3 for the NASDAQ and AMEX symbols, pasting them into their appropriate pages. The NASDAQ symbol “TRUE” causes an error in excel when culled so it must be manually deleted from the “NASDAQ” page.

Step 5: On the “results” page, hit the “cull NYSE” button, followed by the “cull NASDAQ” and “cull AMEX” buttons.

Step 6: Several columns of symbols appear on the “results” page. Yahoo only allows scanning 200 symbols at a time so each column represents a scan of 200 symbols. The columns are the symbols that meet the criteria selected on the “Watch List” page (float between 5M and 60M; average volume > 200,000; EPS > 0; price between $10 and $50.) These columns can then be copied and pasted into a watchlist at wealthlab and scanned for rank. (You can only scan 100 at a time at wealthlab.)

Notes: Yahoo CSV does not have a “% held by insiders” option so it cannot be culled for here. Sometimes Yahoo’s float data is off so you may consider putting the “Float min” to 0 and manually checking all symbols with rank. If no symbols meet the criteria for a particular column (as is the case with the 1st AMEX column from Friday’s data) all 200 symbols will appear in that column, just ignore that column.

 

I should also mention that this spreadsheet isnt "idiot proofed" and clicking around on it may cause it to have errors.

 

Monday Dry Up Stocks

GROW IAAC IIG JSDA NGA

- Spydertrader