We have taken a position in SCEI @ $2.47 for a swing trade intra-day. Our short term target is $2.71 - (UPDATE 12:43) At 12:31pm, SCEI broke through the high of the day resistance at $2.75 and had a push up to $2.93 before settling back into the $2.80 - $2.90 range. Although it looks like we took profits way to early, the good news is we followed our trading plan for a short term profit of 39% on capital exposed. People don't plan to fail, they fail to plan!
3/02/2012 TARGET TRADE
Symbol:SCEI -
Trade:LONG
Entry Price:$2.47
Exit Price:$2.71
Stop Loss:$2.30
3/02/2012 ACTUAL TRADE
Symbol:SCEI -
Trade:LONG
Entry Price:$2.47
Exit Price:$ 2.71
Stop Loss:$2.30
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. On 3/2/2012, the capital exposed for this trade was $12.350.00 which we used to purchase 20,000 shares of SCEI at $2.47 for a total of $49,400. On 3/2/2012 we executed a sell order @ $2.71 at 12:25am. While we had a short term trading target of $2.71 the stock did not pass the $2.75 resistance and therefore we sold at $2.71 or a growth of $54,200.00 which gave us a $4,800.00 profit or 39% on capital exposed.
