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Thread: DXC

  1. #1

    DXC

    DXC is an interesting losing trade that I closed two days ago.

    DXC is the former consulting arm of HP. It is a very large company that is profitable but under heavy debt.

    DXC is clearly in a strong downtrend.

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    I bought after the announcement of the appointment of a new CEO.

    We can indeed see below that this announcement attracted money (Positive EV pattern.) Hence, I bought, but only 1/2 position because the stop was 10% lower, which is rather far for me.

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    The EV pattern looked positive until the market selloff of two days ago, which forced me out of the position on a stop.

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    It is interesting to see that the DXC Supply pattern is very similar to the ZS Supply pattern: we have a group of locked in investors and then a very low Supply level around $33 - my entry price.
    However, when the stock fell below the $31.5 level, the Supply started to increase and the market sell-off was quick to force the most recent investors - like myself - out of their position.

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    I made two mistakes here:

    1. I bought at a price that was too high above my stop. I should have waited for a lower entry.
    2. I did not sell when the price crossed below $31.5 as the EV pattern still looked good.

    Every losing trade is important so that the same mistakes are not repeated.

  2. #2
    Join Date
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    What year was the DXC peak era?

  3. #3
    Quote Originally Posted by Sturdevant View Post
    What year was the DXC peak era?
    DXC is now in a downtrend, but downtrends eventually bottom out.

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