We started watching VOCS on 2/28/2012 because of the acquisition of iContact. On 2/29/2012 Vocus was downgraded from buy to hold and from outperform to neutral. We are looking for a "Controlled Bounce" rebound on 3/1/2012. Our short term target is $14.25.
Below is the individual issue we identified for trading on 2/29/2012 and executed on 3/1/2012:
2/29/2012 TARGET TRADE
Symbol:VOCS -
Trade:LONG
Entry Price:$13.80
Exit Price:$14.25
Stop Loss:$13.50
2/29/2012 ACTUAL TRADE
Symbol:VOCS -
Trade:LONG
Entry Price:$13.80
Exit Price:$ 14.30
Stop Loss:$13.50
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. We implement leverage at a ratio of 10:1. The capital exposed for this trade was $13,800.00 which we used to purchase 10,000 shares of VOCS at $13.80 for a total of $138,000.00. As of this report (2/29/2012 11:15am UPDATE we sold our entire position at 1:14 EST @ $14.30) we have not executed our sell order. We have a short-term target of $14.30 or $143,000.00 which should give us a $5,000.00 profit or 36% on capital exposed.
