Today we experienced large gaps in price prior to the open which greatly impacted our ability to get filled at the entry prices we targeted. We have made it a point not to chase stocks and therefore if we did not get filled at our initial price, then we waited for a new entry point to confirm and then if the trade still made sense, we traded the position.
On March 27th we announced our picks for this mornings session. This watch-list was calculated based on the closing prices on March 27, 2012. Below are the individual stocks we announced on Wednesday. This list was compiled 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.
The picks announced below are for information purposes only and not to be construed as investment advice. We DO NOT get paid by third parties to announce our picks. The picks announced are for trading in our portfolio only and not to be used to unjustly influence the market.
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OPXT (S) - Profit Potential Did Not Justify The Trade
XOMA (S) - Did Not React As Planned (Covered .02 off of target price)
NBIX (L) - Did Not React As Planned (Sold at $7.98 for a .20 profit)
ARNA (L) - Did Not Get Filled At Target Price (Entered long trade at 10:12am @ $2.80)
GALE (L) - Reacted BetterThan Planned
MMR (L) - Did Not Get Filled
Here is our trade blotter for March 28, 2012 for the mid morning of trading.
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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.
