Spydertrader's Jack Hershey Equities Trading Journal III

Discussion in 'Journals' started by Spydertrader, Dec 30, 2006.

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  1. Monkman

    Monkman

    Attached is a chart of RMKR. It looks like a bull flag. Right now its holding the RTL on decreased vol. What we would like to see is an increase in vol to tell us which way this stock will run. Will it be a FTT, FBO, or BO? I will be buying on point 3 on heavy vol. If it traverses through the RTL instead of going up, then i'll look for a short instead. BTW the last vol bar is off. Having minor issues with IQFeed/Amibroker not sure which is causing the problem.

    - Monkman

    [​IMG]
     
    #421     Feb 7, 2007
  2. Just an FYI ...

    Although recent volume surges have pushed Volume beyond the minimum 200,000, the current ADV sits at 136,000 shares. In addition, Insider Ownership currently falls at 17%. Lastly, price has only recently found itself above our minimum $10.00 USD.

    - Spydertrader

    <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1354178>
     
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    #422     Feb 7, 2007
  3. Monkman

    Monkman

    Spyder,

    What was your reasoning for at least 25% insider and institutional ownership? I know its buried somewhere in these forums, but I forget where it is, and other people might want a refresher too : )

    - Monkman
     
    #423     Feb 8, 2007
  4. nkhoi

    nkhoi

    Previously (Journal Two), I added the 25% Insider Owned parameter to the culling Process, but not the 25% Institutional Owned Culling Parameter. At the time, my testing did not show a statistically significant advantage to adding the 25% Institutional Owned parameter, In fact sometimes it tested out worse. However, this limited testing focused only on Final Universe Stocks. Adding both of these two additional parameters to the culling process insures using "High Quality Equities" for any 'Outside the Box' trades one might make.

    Hope that helps clarify things for you.

    - Spydertrader

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=83605&perpage=6&pagenumber=34
     
    #424     Feb 8, 2007
  5. By adding 25% Insider Ownership and 25% Institutional Ownership to the original Hershey Fundamental Culling Parameters, one insures a list of the Highest Quality Equities available. When employees own a significant percentage of a corporation, you often see reduced waste and more effort made towards improved overall profits. In addition, institutional investors aren't normally in the habit of backing losing horses. Together, these two additional culling parameters insure 'big player' interest, as well as, tip the scales in favor of higher quality companies.

    Oh, and one more thing. Jack advised doing so in an old post Mak found somewhere (maybe in the USENET or ET archives) a long time ago. :D

    - Spydertrader
     
    #425     Feb 8, 2007
  6. will someone be so kind as to post their list of dry-up stocks that have ranked for tomorrow? as well as maybe some of the stocks they will be looking at for tomorrow?
     
    #426     Feb 8, 2007
  7. Still Truckin'

    - Spydertrader

    <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1355164>
     
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    #427     Feb 8, 2007
  8. hey spyder, could you explain this cbey chart a little to me?

    i know the orange down channels were the long term channels that started from december.

    but could you explain the red and green channels you have? i understand the red channels created a down trend started from the biggest red bar (point 1) to the long shadow of point 2, then to the first green bar (point 3) that touches the top of the red downward channels.... and just today the second green bar formed which broke out of the red downward channels (creating a temporary breakout??!?)

    can you tell me the date and price of your entry price perhaps? and when do you plan on exiting? when it touches the longterm orange down channels and if it doesn't seem it's going to break the long term down trend?

    by the way, LQDT moved pretty well today.. it's just part of the final universe, but i haven't checked to see if it's within the method of the system yet.

    also, i was wondering if you could explain why you took the CBEY trade... i think hearing the explaination behind your thinking will really accelerate the learning process :D

    cheers
    Chief
     
    #428     Feb 8, 2007
  9. 1. If you scroll back a few pages, you'll see that I posted CBEY prior to today. In fact, the stock showed up on my radar screen, the day before yesterday.

    2. The same process for evaluating stocks to buy works irrespective of where we find the equity (Final Universe or not). Knowing the Price - Volume relationship and how Gaussian Volume formations effect price within a channel determines when to buy and sell (or sell short and cover).

    3. According to your most recent post, you planned to focus on the Beginner Methods before you moved onto Intermediate or FTT level trades. IF you have changed your thoughts on this, please review the FTT discussion at the end of Journal II and throughout this Journal (III). After doing so, you should find you have the ability to answer the questions you posted on your own, and without my input.

    Good trading to you.

    - Spydertrader
     
    #429     Feb 8, 2007
  10. Dry Up Stocks

    BITS DXPE FTEK HWCC ININ NVEC OMRI

    I haven't looked at 'other' stocks to watch yet today.

    - Spydertrader
     
    #430     Feb 8, 2007
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