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.
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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.
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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.)
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.
