We have taken a position in HUSA @ $6.98 for a "Controlled Bounce" rebound on 3/2/2012. Our short term target is $7.74
3/01/2012 TARGET TRADE
Symbol:HUSA -
Trade:LONG
Entry Price:$6.98
Exit Price:$7.74
Stop Loss:$6.50
3/02/2012 ACTUAL TRADE
Symbol:HUSA -
Trade:LONG
Entry Price:$6.865
Exit Price:$ 7.66
Stop Loss:$6.50
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. On 3/1/2012, the capital exposed for this trade was $34,325.00 which we used to purchase 20,000 shares of HUSA at $6.865 for a total of $137,300.00. On 3/2/2012 we executed a sell order @ $7.66 at 9:31am. While we had a short term trading target of $7.74 the stock did not pass the $7.70 resistance and therefore we sold at $7.66 or a growth of $153,200.00 which gave us a $15,900.00 profit or 46% on capital exposed.
