For our trading style, today was a great trading day overall. Our Sunday night picks worked very well for us throughout the day. By the close, there were several stocks defining set-ups that got pummeled but unfortunately, I can't trade them all. In order to exercise some discipline, I am only going to watch a few and hopefully trade the ones that confirm before the open. This will help mitigate the urge to over-trade multiple positions and potentially get slammed.
Based on the closing prices on April 2, 2012, here are the individual stocks we will be watching to trade both long and short, into Tuesday mornings pre-market session.
This list was calculated 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. Unless otherwise noted, we use a .10 stop loss on all trades.
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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.
