10/4/2011 Pre-Market Alert
Please read below to see our pre-market set ups and picks.
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 further confirmed the stocks volume must exceed 2(x) average trading volume prior to the market close.
The following is the individual issues we have identified for trading on 10/4/2011:
The following is the individual issues we have identified for trading on 10/4/2011:
(Volume does not support confirmation of 2(x) ADV)
(Volume does not support confirmation of 2(x) ADV)
(Volume does not support confirmation of 2(x) ADV)
Much like Eastman Kodak Co. (NYSE:EK): NYSE:AMR Corporation has been the target of a rumored bankruptcy filing which has destroyed their share price. Unlike NYSE:EK, NYSE:AMR will most certainly seek bankruptcy protection from the courts sooner than later. While we have a negative long term outlook for NYSE:AMR, we must always remember we are short term traders and therefore must focus on short term strategies to profit from. In looking at the 10/3/2011 aftermarket set up, NYSE:AMR appears to be poised for a dead cat bounce at the open of trading on 10/4/2011. The intra-day chart has a stochastic crossover that just formed at 7.69 and intersected above 20.00 from 2:28pm to the close. Monday, NYSE:AMR traded just under 77 million shares on average trading volume of 12.8 million. In Monday’s aftermarket trading, NYSE:AMR gapped up to $2.14 per share therefore, depending on the pre-market setup Tuesday, we will look for an entry price of $2.05 per share. We will be watching it closely and could be forced to switch sides and quickly reset our strategy to the short side.
Symbol: AMR Trade: Long Entry Price: $2.05 Exit Price: $2.49 Stop Loss: $2.00
Sangamo BioSciences, Inc. (NasdaqGM: SGMO ) took a 30% hit Monday after failing its clinical trial of diabetic neuropathy drug SB-509. While the stock hit a 52 week low in Monday’s session and there has not been a confirming stochastic crossover to even consider a long entry, surprisingly, optionMONSTER's Heat Seeker monitoring system detected unusual call buying in the drug developer. The November 3 contracts were the busiest strike, with more than 1,000 contracts purchased for $0.90 and $0.95. Volume was 100 times previous open interest. NasdaqGM: SGMO, normally trades and daily average of 635k shares and in Monday’s session it traded 5.9 million shares. We will be looking for a long entry at $3.05 with a short term gap up and a sell target at $3.39.
Symbol: SGMO Trade: Long Entry Price: $3.05 Exit Price: $3.55 Stop Loss: $3.00
10/3/2011 Pre-Market Alert
Symbol: MU Trade: Long Entry Price: $5.01 Exit Price: $5.32 Stop Loss: $4.99
-or-
(depending on the pre-market set up)
Symbol: MU Trade: Short Short Price: $4.99 Short Cover: $4.69 Stop Loss: $5.05
Excluded from the list below, we feel that Focus Media Holdings Limited (NASDAQ:FMCN): Down -17.31% which traded over 14 million shares on Friday and has average daily volume of just under 3 million shares per day. FMCN is poised for a long entry around $17.00 based on the set up. The 5 day chart has a stochastic crossover that just formed at 12.08 and intersected above 20.00 into the close. Friday, FMCN traded up to 16.98 in the aftermarket so depending on the pre-market setup Monday, this will either confirm our $17.00 entry price or force us to quickly reset our price.
Symbol: FMCN Trade: Long Entry Price: $17.00 Exit Price: $18.15 Stop Loss: $16.83
Also excluded from the list below, we feel that Eastman Kodak Co. (NYSE:EK): Down -53.84% or .91 on the day to close at .78. While EK traded over 65 million shares on Friday and has average daily volume of just under 16 million shares per day it is set up for a long entry at $1.00. The 5 day chart has a stochastic crossover that just formed at 49.54 and intersected above 20.00 to the close. Friday, EK traded up to 1.05 in the aftermarket so depending on the pre-market setup Monday, this will either confirm our $1.00 entry price or force us to quickly reset our price.
Symbol: EK Trade: Long Entry Price: $1.00 Exit Price: $1.49 Stop Loss: $.95
10/3/2011 Pre-Market Alert
On Friday, WallStWatchdog.com circulated the following report addressing 10 stocks with the biggest percentage moves for the session. Pantheon Traders has historically found that a 25-30% reversal is more ofter 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. This reversal is further confirmed once the stocks volume exceeds 2(x) average trading volume.
From the list below we feel that Micron Technology, Inc. (NASDAQ:MU): Down -14.14% which traded over 63 million shares on Friday and has average daily volume of just under 40 million shares per day is do for a long entry at around $5.01 provided the stochastic set up in the pre-market supports a crossover near 20.00 with an upward sentiment. If the stock breaks down below $5.00 ten its your call, you can either sit on the sidelines or flip your position to the short side. The physiological breakdown that occurs once the stock breaks $5.00 could be good for another .30 on the downside.
Symbol: MU Trade: Long Entry Price: $5.01 Exit Price: $5.32 Stop Loss: $4.99
-or-
(depending on the pre-market set up)
Symbol: MU Trade: Short Short Price: $4.99 Short Cover: $4.69 Stop Loss: $5.05
Excluded from the list below, we feel that Focus Media Holdings Limited (NASDAQ:FMCN): Down -17.31% which traded over 14 million shares on Friday and has average daily volume of just under 3 million shares per day. FMCN is poised for a long entry around $17.00 based on the set up. The 5 day chart has a stochastic crossover that just formed at 12.08 and intersected above 20.00 into the close. Friday, FMCN traded up to 16.98 in the aftermarket so depending on the pre-market setup Monday, this will either confirm our $17.00 entry price or force us to quickly reset our price.
Symbol: FMCN Trade: Long Entry Price: $17.00 Exit Price: $18.15 Stop Loss: $16.83
Also excluded from the list below, we feel that Eastman Kodak Co. (NYSE:EK): Down -53.84% or .91 on the day to close at .78. While EK traded over 65 million shares on Friday and has average daily volume of just under 16 million shares per day it is set up for a long entry at $1.00. The 5 day chart has a stochastic crossover that just formed at 49.54 and intersected above 20.00 to the close. Friday, EK traded up to 1.05 in the aftermarket so depending on the pre-market setup Monday, this will either confirm our $1.00 entry price or force us to quickly reset our price.
Symbol: EK Trade: Long Entry Price: $1.00 Exit Price: $1.49 Stop Loss: $.95
