Biotech closed at a record high today, then Intel and Amazon dropped after the close and took the Nasdaq down with them. Salesforce had a bigger drop than usual, and I would rather catch it a little lower, see that free trade idea below.
What caught my eye on Thursday
Biotech closed at a record high, and it has tech in the name, so that has to make someone happy.
Intel fell about 23% after the close.
Amazon fell about 7% too, and the Nasdaq 100 dropped another 1.6% after hours.
Tonight's free trade: CRM
Entry: BUY LIMIT $225.91, day order
Stop: On the fill day's close; the sheet says if hit
Exit: Dated sell at the open Nov 3; target after a fill
If it never fills, it cancels itself and there is no trade.
How Wide Mean Reversion works
Liquid stocks outside the Nasdaq-100 that are still in long-term uptrends sometimes take a bigger-than-usual one-day drop. We rest a buy limit beneath the market for the snap-back. We get out fast: a profit target the session after the fill, or the open two sessions after it. Built in 2026 and tested back to 2001.
One thing worth knowing
Wide Mean Reversion's winners and losers are about the same size. In our 26-year test, winners averaged +4.43% and losers -4.17%. The edge is how often it wins: 61.8% of 3,203 trades made money.
Would you take this one? Hit reply and tell me how you'd play it. I read every reply.
Below: the rest of tonight's ideas, the exact orders, and how we're managing the open positions.