Based on the closing prices on March 19, 2012, we picked the following individual stocks to watch and trade both long and short, into this mornings session. Every pick we made was 100% wrong and frankly, we had to flip sides and trade contrarian to our model as a defensive strategy in an attempt to make up our pre-market losses. . We immediately took a loss on KBH and FRO in the pre-market and opted to flip sides from our long position to short entry. Although we made the wrong choices on our picks, our strategy to flip sides paid off and we realized a 73% return on capital exposed and a 22% return on assets under management.
March 20 Final Trades
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Pre-Market Picks
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As we said in our opening report, we did not trade IPSU nor did we trade DYN. Both issues FAILED to meet the average daily volume requirement for our model. Every single pick we made yesterday afternoon to trade this morning was 100% wrong. We had to become aggressive and change our strategy mid-stream to cover our losses. We always use very tight stop losses to mitigate our downside risk because we know we will never be smarter than the market and it can turn at ANY moment.
Trade Blotter (9:00am - 10:00am)
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We have made up all of our losses from the open and are now trading in positive territory. We will continue to trade FRO in it's defined range throughout this session.
Trade Blotter (9:00am - 12:00pm)
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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.This is not an offer to buy or sell securities. This information is used to track the performance of our own portfolio ONLY and is not to be construed as investment advice. Trading involves a high degree of risk and should not be attempted by people that are risk adverse. Don't invest what you can't afford to lose.
