3/05/2012 TARGET TRADE
Symbol:KERX -
Trade:SHORT
Entry Price:$4.87
Exit Price:$4.70
Stop Loss:$4.95
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. On 3/5/2012, the capital exposed for this trade was $12,175.00 which we used to short 10,000 shares of KERX at $4.87 for a total of $48,700.00. On 3/5/2012 we executed a buy order to cover @ $4.70 at 12:03pm. We hit our short term target of $4.70 which gave us a $1,700.00 profit or 14% on capital exposed.
