Here are the closing trades for Thursday session. Based on the closing prices on March 21, 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, with GALE making new highs for the morning. GALE is forming a very wide defined trading range of $2.80 to $3.50 for the session. The volume on PWAV is light and therefore we will not be making a new entry at this point.
UPDATE: At 10:08am we are flat on all three positions and are waiting for new entry points.
UPDATE: At 3:02 PM I stepped back in long on GALE only to get stopped out for a .07 loss. I waited for a new long confirmation and I jumped back in long at $2.32 and sold my entire position 17 minutes later at $2.61.
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UPDATE: At 10:08am we are flat on all three positions and are waiting for new entry points.
UPDATE: At 3:02 PM I stepped back in long on GALE only to get stopped out for a .07 loss. I waited for a new long confirmation and I jumped back in long at $2.32 and sold my entire position 17 minutes later at $2.61.
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| Click Image To Enlarge |
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.
