DexCom (DXCM)

Company

"DexCom, Inc., headquartered in San Diego, California, is a medical device company focused on the design, development, and commercialization of continuous glucose monitoring systems for people with diabetes." (company website)

Buy

30-Nov-06. The steep slide that DexCom began in April moderated as months went on, and it looks like a bottom as been reached (see sidebar). The chart has shown strong improvement in the last few weeks, and the stock has pulled back 38% from the peak (Fibonacci numbers). I decided it's time to hop on for the ride.

• Price momentum (PPO) — rapid acceleration, leveling off at a high level
• Trend (ADX) — strong, with buying pressure (+DI) rising and selling pressure (-DI) falling
• Money flow (CMF) — strong flow of money into the stock
• Relative strength (RSI) — generally strong and strengthening
• Volume — average volume near ½ million shares, higher than average was three months ago

Sell

21-Dec-06. After flirting with the 50-day moving average and the lower Bollinger band for several days, it looked like the DXCM pullback was over. Oops! For no apparent reason the stock fell more than 6% today, triggering my stop-loss order.