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 traded the stock on 2/29/2012 for a 33% IRR on capital exposed and went long before the close an additional 10,000 shares at $13.45. We are looking for a "Controlled Bounce" rebound on 3/1/2012. Our short term target is $14.55.
Below is the individual issue we identified for trading on 2/29/2012. VOCS has had resistance @ $14.00. We have a short term intra-day internal target of $14.55.
A V-Formation is setting up in this morning session. If it breaks through $14.00 we could see a significant push.
2/29/2012 TARGET TRADE
Symbol:VOCS -
Trade:LONG
Entry Price:$13.45
Exit Price:$14.55
Stop Loss:$13.25
3/01/2012 ACTUAL TRADE
Symbol:VOCS -
Trade:LONG
Entry Price:$13.45
Exit Price:$ 14.00
Stop Loss:$13.25
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 $13,450.00 which we used to purchase 10,000 shares of VOCS at $13.45 for a total of $134,500.00. On 3/1/2012 we executed a sell order @ $14.00 at 9:36am. While we had a short term trading target of $14.45 the stock did not pass the $14.00 resistance and therefore we sold at $14.00 or a growth of $140,000.00 which gave us a $5,500.00 profit or 41% on capital exposed.
