On March 17, 2012 we picked the following individual stocks to trade during this mornings session. This list was calculated by using the closing prices on March 16, 2010 from NASDAQ and the NYSE percentage up and percentage down securities. We then used a MetaStock filter overlay of volume, share price and percentage increase on average daily volume over a 24 hour period.
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Here is the outcome of this mornings trading session relating to our weekend watch-list. We got stopped out of FUEL from $1.47 to $1.42. We implemented very tight stop losses because of the volatile trading history of each security. COGO we were short at $3.10 and we covered at $2.80. We covered early because of a stochastic crossover above 20, indicating a long entry signal. The signal failed and the stock continued its free fall and to drop to $2.69. We missed this extra movement. OGXI we were long at $13.81 and sold at $14.10. the stock reacted just as we calculated. Finally, HUSA we were short at $6.97 and we covered at $6.45.
Our $100,000 portfolio had a maximum capital exposure of $34,525.00 and we grossed $10,600.00 overall. This provided us a 31% Return on Capital Exposed and 10.6% Return on Assets Under Management for this newly formed portfolio.
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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. For this trade, we implemented a leverage ratio of 4:1.
