Here’s how we traded Zillow ($Z) to make some nice profits. (December 09, 2020)

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We are going to look at Zillow ( NASDAQ: Z ) here. I am going to tell you why we sold this, why we took profits today, because the stock is doing really well so why did we take profits?

This is a stock that had been squeezing here; working pretty well, I drew these lines here a while ago. We bought it right about here; we bought it here on this last little bounce off of the 50-day moving average or close to it. So the trade’s working pretty well, not awesome, but pretty well.

And then today, the stock breaks out of this resistance, breaks out of here above 115.00, and just keeps going. You want to be taking profits into strength like this, especially after it hit the level above this last high here.

And so you look at this as a time when particularly if the stock is above 20 percent above the 50-day moving average, you know there is going to be selling there. So when the stock starts doing this you don’t want to start getting more and more lathered up thinking it’s going to the moon. Instead, you have to always look at the other side of the trade.

And so that’s what we did; we didn’t sell at the top, I’ll be honest with you, I was looking elsewhere, but we did get out around 121.00-122.00, something like that so it was a really, really good trade for us. You can look at the intraday stuff and see what’s happening. But what really should impact you the most on trading is what you are seeing on the daily chart.

I would be real surprised if this thing hits 120.00, I don’t know about 110.00, maybe, but if this thing hits 120.00 before it hits say 112.00 or something, I would be real surprised. That’s what our trade is like on Zillow ( NASDAQ: Z ).

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