Here’s your trade on Innovative Industrial Properties (IIPR). (May 22, 2019)
IIPR PANW QCOM AMBA IIPR
With Industrial Properties ( NYSE: IIPR ) here, Innovative Industrial Properties ( NYSE: IIPR ); I like the way this is trading, I have had these lines here for a while. The reason I like it is because it has been in a squeeze here, a break out from the squeeze, and then a pullback. You could say, “Oh crap, it’s a failed breakout.” I wouldn’t say that; it’s just a breakout, it got a little ahead of itself, pulled back on about average volume to the 50-day moving average and now this stock is moving higher.
This is what you want to do: First thing, when are earnings? Not irrelevant, already done here. The next earnings are in August, which seems kind of weird, maybe that’s wrong but I am just going to go by that on this chart. Then you look at the stock here at 87.57 and you say, “Alright, I want to buy this stock on the zigzag, 1,2, looking at that. I want to buy this stock on the zigzag.”
How do I know if I am wrong? I will know if I am wrong if the stock falls back below the 50-day moving average, that’s where I put my stop. Buy the stock here, 50-day moving average there a little bit below the 50-day moving average; now I’ve got a trade that’s working. Getting in here sure beats getting in somewhere back here where the pattern has still been forming.
Here’s the lesson: You look at a stock and just because it isn’t giving you a good entry don’t dispense with the stock. Keep it on a watch list and then look at it every day. I just bought some of this stock today. I don’t know if it is going to be a moneymaker or not but I know where my stop is, I just told you. I have been watching this stock for a long time; it has actually been on our Growth Stock List since $65.00. This has been a really nice mover but, frankly, I sold it too soon and then I have just been waiting to get back into it; now I just have.
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