April 9, Closing Trade Report

April 9th Closing Trade Report:

On April 8th we Tweeted our picks for this mornings 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 from the bid price, on all trades.

Here is what we Tweeted:(Scroll Down For Our Closing Report Blotter)

Click Image To Enlarge

(The picks announced above are for information purposes only and not to be construed as investment advice.  We DO NOT get paid by third parties to announce our picks.  The picks announced are for trading in our portfolio only and not to be used to unjustly influence the market.)


Here is our trade blotter for this mornings session:

Click Image To Enlarge

HEAT (S) - Reacted As Planned
RCON (S) - Did Not React As Planned (Volume Is Flat, position closed)
THTI (L) - Traded After The open
RT (S) - Did Not Get Filled
NFEC (S) - Reacted As Planned

HEAT again has been my best trade.  I plan on trading this from both sides throughout the remainder of the session.

UPDATE:(3:57pm) Here is our closing trade blotter for April 9th.

Click Image To Enlarge

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.

April 9, Morning Trade Report

April 9th Morning Trade Report:

On April 8th we Tweeted our picks for this mornings 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 from the bid price, on all trades.

Here is what we Tweeted:

Click Image To Enlarge

(The picks announced above are for information purposes only and not to be construed as investment advice.  We DO NOT get paid by third parties to announce our picks.  The picks announced are for trading in our portfolio only and not to be used to unjustly influence the market.)


Here is our trade blotter for this mornings session:

Click Image To Enlarge

HEAT (S) - Reacted As Planned
RCON (S) - Did Not React As Planned (Volume Is Flat, position closed)
THTI (L) - Traded After The open
RT (S) - Did Not Get Filled
NFEC (S) - Reacted As Planned

HEAT again has been my best trade.  I plan on trading this from both sides throughout the remainder of the session.

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.

April 9, Watch-List

April 9th Watch-List

Last week was a rocking week as far as our trade performance was concerned.  Let's see if this week, we can keep up with this momentum.

Based on the closing prices on April 5 2012, here are the individual stocks we will be watching to trade both long and short, into Monday 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 from the bid price, on all trades.

We will be watching HEAT and NFES for the largest percentage swings.

Click Image To Enlarge

(The picks announced above are for information purposes only and not to be construed as investment advice.  We DO NOT get paid by third parties to announce our picks.  The picks announced are for trading in our portfolio only and not to be used to unjustly influence the market.)

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.

Pantheon Weekly P&L and Inception P&L (3)

As you may recall, the week of March the 12th, we made the decision to implement an additional tracking method for a new specific pantheon portfolio with $100,000.00 is assets or based on our leverage model $400,000.00 in buying power.  Instead of tracking just Return on Capital Exposed, we have decided to also track Return on Assets Under Management (AUM) for this portfolio. By tracking both ways of performance, we can now model our trading styles to maximize our overall Return on Investment (ROI) while reducing our overall trade risk. 

Given this short week we did not think we would hold up our trading performance track-record.  To our surprise, with the erratic trading behavior of HEAT we knocked our performance out of the park.  This week has been our single best week ever.


Through this portfolio research, we have been able to determine a few key components to our theory. First, we should not trade more than $100,000 in risked capital. Second, we should not use leverage of more than 4:1. Third, we should not expose more than 35% of the risked capital. Forth, we must institute tight stop losses of .07 to .10 (this week we expanded our stops to .15 .25 )on every trade and finally, provided we continue to use a 1 min, 5 min and 15 min Fast and Slow Stochastic as our leading indicator before entering a trade, we can mitigate our trade risk helping us have more successful trades. Since we started this new portfolio, we have had an 82% success ratio of winning trades vs. losing trades.  

We look forward to continuing our testing for our model and bring you our results as they happen. 

Here is the inception P&L for our portfolio.

Click Image To Enlarge

Our trading style is not for everyone and involves a high degree of risk.  We use every attempt to mitigate our risk by incorporating defensive trading measures to preserve our capital. We exercise tight stop losses and  never think we are smarter than the market.  We have learned to never trade on a tip or a hunch cause we never seem to come out on the winning side of the trade. We do our own research before we execute a trade.  If we are not feeling 100% before we start our trading day then we won't trade until we do.  We will NEVER force a trade just to make a trade. 

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.

April 5 - Closing Trade Report

April 5th - Closing Trade Report 

I'm Looking forward to a volatile trading month. Discipline is going to be key to my success for the month of April. 

SCROLL DOWN FOR OUR CLOSING TRADE BLOTTER

For a 3rd day in a row picks on our watch-list did not react as anticipated and again we got stopped out while trading HEAT.  On April 4, we announced our picks for this mornings session. This watch-list was calculated based on the closing prices on April 4, 2012.  This list was compiled 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.

Click Image To Enlarge

HEAT (S) - Got Stopped at the open and flipped sides.
MAGS(S) - Reacted As Planned
THTI (L) - Did Not React As Planned
CBLI (L) - Did Not Get Filled
IDIX (L) - Did Not Get Filled

HEAT faked me out at the open yet again and I took a quick stop loss.  I immediately flipped sides to find a rhythm. Again the differential between the high and the low for the day is going to make this one another fun trade.  Statistically, it is very difficult for a stock to maintain 3 consecutive up days which is why I think we are seeing a negative pull on HEAT today. 
 
UPDATE: At 10:4am HEAT is testing $8.00 again.  Although the overall tone is negative we are being cautious because of the erratic gaps this stock makes.  If it breaks the HOD of 8:13 it can run.

Here is our trade blotter for April 5, 2012 for the mid morning of trading. 

Click Image To Enlarge

UPDATE: Here is our April 5th closing trade report:

Click Image To Enlarge

 

(The picks announced below are for information purposes only and not to be construed as investment advice.  We DO NOT get paid by third parties to announce our picks.  The picks announced are for trading in our portfolio only and not to be used to unjustly influence the market.)


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.

HEAT Short Cover

At The Moment I'm Out Of HEAT

I entered my last short position at 10:36am with an average price of $7.45. At 12:47pm, I covered my short position in HEAT at an average price of $6.40.  The following 2 minute and 5 minute chart's show the slow stochastic indicators that confirmed my decision to execute my short cover.

Click Chart To Enlarge

HEAT Great Short Trade

On 4/4,  I announced that we were looking to go short on HEAT. After getting stopped out of my first short entry this morning, I flipped sides for a profit in an attempt to recoup my loss.  The overall sentiment for HEAT has been negative this session which has assisted in our short play.  

This is my second day trading HEAT and frankly once my rhythm was established, the trading range has made for a nice P&L. If it beaks below $6.60 the stock could see a new low between $6.00 and $6.25.

Click Chart To Enlarge

 

April 5 - Morning Trade Report

April 5th - Morning Trade Report 

I'm Looking forward to a volatile trading month. Discipline is going to be key to my success for the month of April. 

For a 3rd day in a row picks on our watch-list did not react as anticipated and again we got stopped out while trading HEAT.  On April 4, we announced our picks for this mornings session. This watch-list was calculated based on the closing prices on April 4, 2012.  This list was compiled 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.

Click Image To Enlarge

HEAT (S) - Got Stopped at the open and flipped sides.
MAGS(S) - Reacted As Planned
THTI (L) - Did Not React As Planned
CBLI (L) - Did Not Get Filled
IDIX (L) - Did Not Get Filled

HEAT faked me out at the open yet again and I took a quick stop loss.  I immediately flipped sides to find a rhythm. Again the differential between the high and the low for the day is going to make this one another fun trade.  Statistically, it is very difficult for a stock to maintain 3 consecutive up days which is why I think we are seeing a negative pull on HEAT today. 

 
UPDATE: At 10:4am HEAT is testing $8.00 again.  Although the overall tone is negative we are being cautious because of the erratic gaps this stock makes.  If it breaks the HOD of 8:13 it can run.

Here is our trade blotter for April 5, 2012 for the mid morning of trading. 

Click Image To Enlarge

(The picks announced below are for information purposes only and not to be construed as investment advice.  We DO NOT get paid by third parties to announce our picks.  The picks announced are for trading in our portfolio only and not to be used to unjustly influence the market.)


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.

April 5, Watch-List

April 5th Watch-List

Today started out as another shaky trading day which always hits my ego but after a quick break, the P&L turned green.  I am very proud of today's performance but I gotta tell you, being on the wrong side of $HEAT today could have been catastrophic. As I said yesterday, I guess that is one of the risk associated with being a professional trader.  


Based on the closing prices on April 4, 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.


(The picks announced above are for information purposes only and not to be construed as investment advice.  We DO NOT get paid by third parties to announce our picks.  The picks announced are for trading in our portfolio only and not to be used to unjustly influence the market.)

Click Image To Enlarge

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.

April 4 - Closing Trade Report

April 4th - Closing Trade Report- OUR BEST DAY YET!!!

I'm Looking forward to a volatile trading month. Discipline is going to be key to my success for the month of April. 

Well, what started out as a shaky day for us with our "Controlled Bounce"  picks, again I quickly moved to a defensive strategy to recoup three (3) stop-losses of almost $5,000.00. I am proud to say that I traded $HEAT today and because of the wide swings I quickly found my rhythm and today was our best IRR performance since inception.

Scroll Down To Update: Closing Report to see how we did today.

Here are the picks we announced yesterday.

HEAT (S) - Got Stopped twice before finding my rhythm.
MRGE(L) - Reacted Better Then Planned 
MITK(L) - Got Stopped out. Flipped sides for a short term profit. 
IVN (SL - Did not trade. reset order and did not get filled.

HEAT started down 5% in the pre-market and it looked perfect for quick short and cover.  WOW was I wrong! After getting stopped out twice, I finally flipped sides and began to profit on the erratic swings.  the differential between the LOD and the HOD was so large that once I found my rhythm the potential for profit became much easier. MITK I got stopped out of early and flipped sides in an attempt to recover my losses from the stop. 

click Chart To Enlarge

 
UPDATE: At 10:11am HEAT is testing news highs at $6.97.

Here is our trade blotter for April 4, 2012 for the mid morning of trading. 

Click Image To Enlarge

UPDATE: Closing Trade Report (We closed out all positions at #:30pm today)

Click Image To Enlarge

(The picks announced below are for information purposes only and not to be construed as investment advice.  We DO NOT get paid by third parties to announce our picks.  The picks announced are for trading in our portfolio only and not to be used to unjustly influence the market.)


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.

April 4th - Morning Trade Report

April 4th - Morning Trade Report 

I'm Looking forward to a volatile trading month. Discipline is going to be key to my success for the month of April. 

Oh my...For a second day in a row picks on our watch-list did not react as anticipated and we incurred multiple stop losses.  On April 3, we announced our picks for this mornings session. This watch-list was calculated based on the closing prices on April 3, 2012.  This list was compiled 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. When we announced PCBC, we corrected the symbol error to PNBC.

HEAT (S) - Got Stopped twice before finding my rhythm.
MRGE(L) - Reacted Better Then Planned 
MITK(L) - Got Stopped out. Flipped sides for a short term profit. 
IVN (SL - Did not trade. reset order and did not get filled.

HEAT started down 5% in the pre-market and it looked perfect for quick short and cover.  WOW was I wrong! After getting stopped out twice, I finally flipped sides and began to profit on the erratic swings.  the differential between the LOD and the HOD was so large that once I found my rhythm the potential for profit became much easier. MITK I got stopped out of early and flipped sides in an attempt to recover my losses from the stop. 

click Chart To Enlarge

 
UPDATE: At 10:11am HEAT is testing news highs at $6.97.

Here is our trade blotter for April 4, 2012 for the mid morning of trading. 

Click Image To Enlarge

(The picks announced below are for information purposes only and not to be construed as investment advice.  We DO NOT get paid by third parties to announce our picks.  The picks announced are for trading in our portfolio only and not to be used to unjustly influence the market.)


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.

April 3 Closing Trade P&L

April 3rd - Closing Trade Report (Scroll Down For Report)

I'm Looking forward to a volatile trading month. Discipline is going to be key to my success for the month of April. 

Although I was looking forward to a volatile month, I did not anticipate taking multiple stops right at the open. Not a great way to start the day.


April 3, 2012 10:15am

On April 2, we announced our picks for this mornings session, WOW I got hammered on a couple of the picks. This watch-list was calculated based on the closing prices on April 2, 2012.  This list was compiled 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.

Click Image To Enlarge

 
UPDATE: MITK Keeps falling.....I'm flipping and going short.

Here is our closing trade blotter for April 3, 2012 for the mid morning of trading. 

Click Image To Enlarge

Unlike yesterday, today started out pretty rough.  I took two stops right out of the gate which never sets a good tone for the remainder of the day. After taking an immediate time out, I came back to my station and re-evaluated my positions and started to focus on MITK.  Once I picked my short entry, the stock traded far better than anticipated from the short side which helped re-establish my confidence.  From 11:00am to the close, I expanded my stops to .25 for to allow for greater swings.

Click Chart To Enlarge

(The picks announced below are for information purposes only and not to be construed as investment advice.  We DO NOT get paid by third parties to announce our picks.  The picks announced are for trading in our portfolio only and not to be used to unjustly influence the market.)


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.

March 3 Trade Update

 

March 3 Trade Log

I will be updating my trade blotter right before the close.  I can tell you this, our "Controlled Bounce" totally broke down today and with the exception of WG, I had to trade a defensive strategy on every position because of getting stopped out early.

April 3rd Watch-List

April 3rd Watch-List

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.

Click Image To Enlarge

(The picks announced above are for information purposes only and not to be construed as investment advice.  We DO NOT get paid by third parties to announce our picks.  The picks announced are for trading in our portfolio only and not to be used to unjustly influence the market.)

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.

April 2nd Closing Trade Report

April 2nd - Closing Trade Report (Scroll Down For Report)

I'm Looking forward to a volatile trading month. Discipline is going to be key to my success for the month of April. 

April 2, 2012 10:15am

On April 1, we Tweeted our picks for this mornings session. This watch-list was calculated based on the closing prices on March 30, 2012.  This list was compiled 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. When we announced PCBC, we corrected the symbol error to PNBC.

Click Image To Enlarge

ARNA(L) - Reacted As Planned 
PNBC(S) - Reacted Better Then Planned 
GALE (L) - Reacted As Planned 
LIZ(S) - Reacted Better Then Planned 
SBSA (S) - Got Stopped Out For $1,000.00 Loss (Flipped sides twice to attempt to cover loss.)

SBSA got away from me at the open and I got stopped out of my position for a $1,000.00 loss.  I quickly flipped sided for a long entry at $7.00 per share and almost immediately sold at $7.25 for a quick profit. I then traded the position from the short side from $7.22 to cover at $6:71.

Click Chart To Enlarge

 
UPDATE: At 10:11am SBSA made new morning lows at $6.41.

Here is our trade blotter for April 2, 2012 for the mid morning of trading. 

Click Image To Enlarge

UPDATE: Here is our closing trade report for April 2, 20120 at 3:51pm.

Click Image To Enlarge

I had an absolute blast trading PNBC today. The stock traded far better than anticipated from the short side which I hope sets the tone for the trading week. Although I am not normally a short trader the set up from the close on Friday was perfect and I could not pass it up.

Click Chart To Enlarge

(The picks announced below are for information purposes only and not to be construed as investment advice.  We DO NOT get paid by third parties to announce our picks.  The picks announced are for trading in our portfolio only and not to be used to unjustly influence the market.)


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.

April 2nd - Morning Trade Report

April 2nd - Morning Trade Report 

I'm Looking forward to a volatile trading month. Discipline is going to be key to my success for the month of April. 

On April 1, we Tweeted our picks for this mornings session. This watch-list was calculated based on the closing prices on March 30, 2012.  This list was compiled 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. When we announced PCBC, we corrected the symbol error to PNBC.

Click Image To Enlarge

ARNA(L) - Reacted As Planned 
PNBC(S) - Reacted Better Then Planned 
GALE (L) - Reacted As Planned 
LIZ(S) - Reacted Better Then Planned 
SBSA (S) - Got Stopped Out For $1,000.00 Loss (Flipped sides twice to attempt to cover loss.)

SBSA got away from me at the open and I got stopped out of my position for a $1,000.00 loss.  I quickly flipped sided for a long entry at $7.00 per share and almost immediately sold at $7.25 for a quick profit. I then traded the position from the short side from $7.22 to cover at $6:71.

Click Chart To Enlarge

 
UPDATE: At 10:11am SBSA made new morning lows at $6.41.

Here is our trade blotter for April 2, 2012 for the mid morning of trading. 

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(The picks announced below are for information purposes only and not to be construed as investment advice.  We DO NOT get paid by third parties to announce our picks.  The picks announced are for trading in our portfolio only and not to be used to unjustly influence the market.)


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Great LA Times Story!

LA Times Reports Industry Professionals Using Twitter and other Social Media For The Next Big Tip

Social media (Lawrence K. Ho, Los Angeles Times / March 14, 2012)

Pro stock traders looking to Twitter, Facebook for tips

Computer programs that scour posts on the Internet are helping institutional stock traders spot comments about companies that could point their way up — or down.

By Walter Hamilton, Los Angeles Times

8:46 PM PDT, March 30, 2012

The next big stock tip might be as close as a Twitter feed.

Professional traders are developing computer programs that scour Internet posts in search of the next stock market darling. Their technology analyzes everything uttered about a company — good or bad, racy or mundane — and spits out trading recommendations.

The logic is that the popular sentiment expressed by millions of people on sites such as Twitter and Facebook yields investment clues that can't be gleaned from financial statements or analyst reports.

Complaints about a new product can foreshadow a drop in sales and, hence, in a stock. Internet posts also can showcase investor emotions, such as when panic might cause people to irrationally dump a stock.

Given the frenzy over social media, it was only a matter of time before hedge funds and other Wall Street trading shops tried to cash in. Unlike individual investors who look for slow and steady returns, these traders thirst for any sort of an edge in a lightning-fast market.

"Any time you can predict the future, there's money to be made," said Richard Peterson, whose Santa Monica-based MarketPsych sells social-media data to hedge funds and banks.

Sound far-fetched? Plenty of skeptics, including a fair number on Wall Street, question whether any of this actually works. And even if it does, it would be Wall Street professionals who benefit rather than people actually using the sites.

For example, on Jan. 18 Peterson's computers recommended buying semiconductor maker Spreadtrum Communications Inc. based on comments on a Twitter-like site for investors. The shares had fallen sharply and several investors said they might buy the stock if a fledgling recovery could hold.

"So tempting to jump back in," one investor wrote.

Peterson's computers read that as a bullish sign for anyone who could jump in first. A trader buying 1,000 shares at the next day's opening would have made more than $500 as the shares rose nearly 4% over next five days.

Doubters scoff at the idea of trading based on unfiltered rants in the blogosphere.

It reminds John Buckingham, chief investment officer at Al Frank Asset Management Inc. in Aliso Viejo, of the late-1990s dot-com bubble. He'd mention stocks on CNBC, he said, and even those he recommended selling would surge.

"The stock chart would go up [on the screen] and people would buy it," Buckingham said. "Investors should focus on quality companies, not what somebody is saying in a chat room or on a social-media site."

Even social-media practitioners acknowledge how unorthodox their strategy is.

"I openly accept that there are a lot of eye-rolls out there," said Randy Saaf, co-founder of AlphaGenius Technologies in Los Angeles. "There's a long path ahead of us to get people to shift away from what we've been taught by Warren Buffett."

Peterson admits his method doesn't always work — a recommendation to buy water company Heckmann Corp. on Jan. 26 backfired when the stock fell 11% by the time the sell signal came a few days later.

But he views social-media investing as a promising strategy in an industry that has long looked for secret formulas to trading stocks. MarketPsych, AlphaGenius and other companies sell customized data feeds to hedge funds, high-frequency traders and other professionals.

A handful of studies have shown a correlation between sentiment on social-media sites and the performance of stock prices.

Johan Bollen, a professor at Indiana University, found that Twitter posts correctly predicted the direction of the Dow Jones industrial average 86.7% of the time.

His study analyzed almost 10 million tweets by 2.7 million users over a nearly 10-month period in 2008. It found that users' moods one day presaged the direction of the Dow Jones industrial average three days later.

"There's a lot of promise," Bollen said. "It's really tantalizing to be able to tap into the global zeitgeist."

Another study found a high correlation between a stock's popularity on Facebook and its performance. Arthur O'Connor, a Pace University doctoral student, examined 30 consumer stocks for the year that ended in June 2011. The stocks of companies with growing fan bases tended to outperform.

Some Wall Street veterans see the potential.

Sam Stovall, chief investment strategist at Standard & Poor's Corp., likens it to bring-your-children-to-work day when his firm's retail-stock analysts pepper their co-workers' children with questions about their consumer favorites.

"You want to be the first on Wall Street to know what's hot in the local junior high," Stovall said. "The feeling is that if you can't talk to young adults directly, maybe you can eavesdrop through social media."

No one has more faith in the strategy than Peterson.

The Stanford-trained psychiatrist used to see patients to earn enough money to pay programmers to write his social-media code. The bookcase in his office brims with titles such as "Nerds on Wall Street" and "Handbook of Emotional Regulation."

The 39-year-old, who was at the office one day recently in green khakis, worn hiking shoes and rimless glasses, says his computers sift through 2 million posts, tweets, blog posts and news articles a day, analyzing the psychological context of each.

He started a hedge fund during the depths of the global financial crisis in late 2008. It surged 40% in nine months. But after he tweaked his formula to improve it, the fund lost 1% a month for the next 15 months, and Peterson closed it at the end of 2010. He says he's fixed it and recently began managing a small amount of money for friends and family.

There's a lot of money to be made interpreting the moods of other investors, he said.

"It's huge," Peterson said. "The biggest barrier is convincing people that it matters."

walter.hamilton@latimes.com

Copyright © 2012, Los Angeles Times