3/06/2012 TARGET TRADE
Symbol:KERX -
Trade:LONG
Entry Price:$4.25
Exit Price:$4.52
Stop Loss:$4.10
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 3/6/2012, the capital exposed for this trade was $10,625.00 which we used to purchase 10,000 shares of KERX at $4.25 for a total of $42,500.00. On 3/6/2012 we executed a sell order to liquidate our entire position @ $4.52 at 10:05am. We hit our short term target of $4.52 which gave us a $2,400.00 profit or 25% on capital exposed.
