Friday’s drop was a sign to look for great bargains. The trick is to know when to grab them.

We have looked at DXCM in the past and it is a great example. It plummeted on Friday with the rest of the market but it tends to be a victim of broader market moves. It could easily be over sold and try to refill to correct. The first step is to see what the broader picture looks like. The VIX is giving us a great clue:

The it doesn’t look like it is going back down immediately and in fact, it gapped up this morning.

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This is typically a signal that the selloff isn’t over quite yet. Now take a look at the DXCM chart.

It was on a push to get back to its all time high and had started to slow down a bit and confirm support. The drop late last week could very well be an overreaction. The two things to watch to get a sense it is a good time to buy this stock at a discount is to see the MACD start to turn up and ideally, the stock bounce above it’s 10 day moving average. We are definitely gong to keep an eye on this and keep you updated.

Keep learning and trade wisely,

John Boyer

Editor

Market Wealth Daily