We started watching VOCS on 2/28/2012 because of the acquisition of iContact. On 2/29/2012 Vocus was downgraded from buy to hold and from outperform to neutral. We traded the stock on 2/29/2012 for a 33% IRR on capital exposed and went long before the close an additional 10,000 shares at $13.45. We are looking for a "Controlled Bounce" rebound on 3/1/2012. Our short term target is $14.55.
Below is the individual issue we identified for trading on 2/29/2012 and executed on 3/1/2012:
2/29/2012 TARGET TRADE
Symbol:VOCS -
Trade:LONG
Entry Price:$13.45
Exit Price:$14.55
Stop Loss:$13.25
3/01/2012 ACTUAL TRADE
Symbol:VOCS -
Trade:LONG
Entry Price:$13.45
Exit Price:$ 00.00
Stop Loss:$13.25
Pantheon Traders incorporates a short-term trading strategy we coined the “Controlled Bounce”. This strategy is implemented by executing trades in stocks that have seen a market anomaly in their share price. We have found that historically a 25-30% next day reversal is more often than not the norm on a stock that has been the recipient of either a positive or negative percentage change of more than 11% intra-day. In order for this reversal to be confirmed to trade, the individual issue’s volume must exceed 2(x) average trading volume prior to the market close with a stochastic crossover above 20.00. We implement leverage at a ratio of 10:1.
