DexCom makes continuous glucose monitoring (CGM) systems. DXCM pulled back hard inside a longer uptrend. Tonight's trade is a buy limit at $79.32, with the stop, size and exit written out below. Technology led the sectors on Wednesday.
The market on Wednesday
S&P 500 (SPY) 773.09, +0.53%
Nasdaq 100 (QQQ) 725.20, +1.05%
Russell 2000 (IWM) 276.48, +0.25%
Dow (DIA) 527.70, +0.64%
VIX 16.68, -3.64%
Technology (XLK) led Wednesday, up 1.67%. It is still down 3.5% over the last 20 sessions.
Tonight's trade: DXCM
Buy limit $79.32, day order
Stop: after a close beneath $71.45, sell at the next open
Exit: a close above the prior day's high sells it at the next open
Time exit: sell at the open Tue Nov 10
The stop is not an order you place: only a close beneath $71.45 counts. It assumes a fill at the limit; a lower fill lowers it by the same amount. Whichever exit comes first closes the trade.
How Mean Reversion works
The most-watched names in the market get defended. This system buys a hard pullback in a leader that is still in a healthy longer-term uptrend, with a buy limit just under the close. Out within days.
The rest of Thursday's sheet is below the line: 3 more swing orders in 3 other stocks, 25 day trades, and the exit plan for all 10 open positions. Open tonight's full sheet
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