3/06/2012 TARGET TRADE
Symbol:KERX -
Trade:LONG
Entry Price:$4.10
Exit Price:$4.29
Stop Loss:$4.05
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 $10,250.00 which we used to purchase 10,000 shares of KERX at $4.10 for a total of $41,000.00. On 3/6/2012 we executed a sell order to liquidate our entire position @ $4.29 at 3:07pm. We hit our short term target of $4.29 which gave us a $1,9000.00 profit or 19% on capital exposed. we missed the run once KERX broke through the $4.30 resistance to $4.45 before pulling back to the mid $4.30's.
