March 23 Second Trade Report

March 23, Noon Trading Report Card

We have a constant scan for Most Up and Most Down running at all times and we were alerted to KITD.  In looking at the 5 minute chart, we noticed a longer term stochastic crossover forming a bullish trend.  We went long at $6.03 for a nice .42 gain.  We held this stock longer than we normally like to but we feel it was worth it.

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Our capital exposed jumped from $8,250.00 on the day to $15,075. This lowered our return on capital exposed but increased the overall return on assets under management for the portfolio.

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Based on the closing prices on March 22, 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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Both picks reacted as planned, with GALE defining its trading range within the first 10 minutes of the open. CVO is testing .30 swings moving into the second half of the first hour of trading.

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UPDATE: At 10:15am 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.