What’s the best way to trade the pot stocks? Get down in the dirt! Check out Innovative Industrial Properties ($IIPR) (July 28, 2020)
IIPR TNX--X
I want to look at Innovative Industrial Properties ( NYSE: IIPR ). This company is in the pot industry; they don’t grow it they buy and lease land for those who do and that is a pretty good business to be in. I would rather own this than any of the pot stocks themselves.
If we look at this here, first of all, you get almost a 4.2 percent yield and you compare that to the treasuries ( TNX–X ), and I’d say 4.2 is pretty good. So I like the way the stock is trading, it is in kind of a triangle pattern, kind of a flat triangle right there. So this is a pretty easy trade, I am not saying it is necessarily profitable, I think it will be but just take note, there is a difference between easy and a guaranteed profit.
This is not that, I don’t know of one trade that there is a guaranteed profit, we’re all speculators here. But the top here today is $100.44. This stock moved up today on pretty big volume; volume that was larger than we’ve seen in the last few weeks, right? So that’s a good thing. I look at this stock and it just feels to me like it’s under accumulation. You will see how it’s trading up here on the 15-minute chart over the last few days.
So this is what I would be doing, you can set a buy stop at $100.50. That gives the stock just a few pennies to run before you get hit. Or you can just set yourself an alert; just set an alert there and then that will take care of it. The bottom line is this, this stock has been trending sideways for so long that I think a nice move to the upside should lead to, I’ll say at least to a 10 percent move, maybe more but we will start at 10 percent and then just go from there.
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