Based on the closing prices on March 20, 2012, we tweeted the following individual stocks to watch and trade both long and short into this mornings session. This list was calculated by using the closing prices 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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All three picks reacted as planned, although the movement was very slow on TRGT for the first 15 minutes of the open, then picking up in the second 15 minute interval of the session. RCON keeps trading in a nice range of $3:45 and $3.90 while GALE wants to test new highs early. For the moment, GALE is also trading in a nice range on $2.05 and $2.25.
UPDATE: At 10:00am we are flat on all three positions and are waiting for new entry points.
UPDATE: At 10:00am we are flat on all three positions and are waiting for new entry points.
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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.
