We also took a long position in SHFL at $16.05 for a short term bounce target of $16.66. Because SHFL did not break the 1st resistance of $16.65, we sold our entire position at $16.60.
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TRADE 1
3/07/2012 TARGET TRADE
Symbol:VRML -
Trade:SHORT
Entry Price:$3.01
Exit Price:$2.57
Stop Loss:$3.10
TRADE 2
3/07/2012 TARGET TRADE
Symbol:SHFL -
Trade:LONG
Entry Price:$16.05
Exit Price:$16.60
Stop Loss:$15.80
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. TRADE 1 - On 3/7/2012, the capital exposed for this trade was $7,525.00 which we used to short 10,000 shares of VRML at $3.01 for a total of $30,100.00. On 3/7/2012 we executed a buy order to cover @ $2.57. We hit our short term target of $2.57 which gave us a $4,400.00 profit or 58% on capital exposed. TRADE 2 - On 3/7/2012, the capital exposed for this trade was $40,125.00 which we used to go Long 10,000 shares of SHFL at $16.05 for a total of $160,500.00. On 3/7/2012 we executed a sell order at $16.60. We did not hit our short term target of $16.66 because the stock did not break through it's $16.65 resistance. We sold our position at $16.60 which gave us a $5,500.00 profit or 14% on capital exposed.
