The Nasdaq 100 held its 200-day average again today and closed up 0.6%, while the average S&P 500 stock slipped 0.3%. APA, the oil and gas producer, had a bigger drop than usual today, and I would rather buy it a little lower, so the order sits under today's close and only fills if the selling carries into Wednesday.
APA Corporation is an independent oil and natural gas producer and the parent of Apache. A liquid, fast-moving stock outside the Nasdaq-100, still in a long-term uptrend, just had a bigger-than-usual one-day drop for that stock. Tonight's free trade is a buy limit at $46.79, with the stop and exit written out below.
What caught my eye on Tuesday
QQQ is holding its 200-day average, the first touch since April.
Tonight's free trade: APA
How to place it: enter a BUY LIMIT for APA at $46.79, good for the day only - if it never fills, it cancels itself and there is no trade. Attach a dated market-on-open sell for Friday, November 6 to the buy; it only goes live once the buy fills. Members get the exact profit target on the sheet the evening after a fill, a sell limit for the next session only, and that sheet also says whether the close on the day you are filled hit its stop. Do NOT rest a stop order for this one: its stop counts only on the close of the day you are filled. An intraday dip is normal and is not an exit.
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
Most Wide Mean Reversion trades never reach their target. In our 26-year test, 37% hit it and made +5.50% on average. Almost all the rest were sold on time after two nights and lost 1.57% on average. The hits pay for the misses.
Would you take this one? Hit reply and tell me how you'd play it. I read every reply.
Below the line: 3 more swing trades and 47 day-trade setups for Wednesday, with the exact entry, stop and exit for each, plus the stops and exits on our 11 open positions.