Here’s your trade on Interactive Broker ($IBKR) – January 2, 2025
Dan Fitzpatrick here at StockMarketMentor.com. Right now Interactive Brokers ( NASDAQ: IBKR ) is one of the stocks that are on my On Deck List.
I’ve got 23 stocks on this list, it’s kind of my short list. I would call it my short list but then people would say, give me the list of stocks that you’re going to short, and that’s not what this is about. But when I look at Interactive Brokers ( NASDAQ: IBKR ) this is what I see, I see big institutional buying back here, there’s no other way around it.
Decline, pull back, pull back, hit the 50, boom, well over twice the average volume. This is institutional buying on the Friday before Christmas. The institutions made a stand there and then the stock is up a bit. It’s pulled back and then today, they’re back again buying, not like they were then.
This is a high-volume day on a crappy market day and this stock is up 3.3 percent. I’ll make this short and sweet, this is the way you can frame this trade if you like the stock. Maybe even keep your stop below this day’s intraday low of 173.59, so keep your stop at 173.55. That’s slightly below the 50-day moving average.
But more importantly, what it is is below today’s intraday range. And your reason for buying the stock today, or because of what happened today is, buyers are coming in here, they’re taking this stock. How will I know I’m wrong? I’m wrong if the stock falls below everything that was happening today.
That tells me that, okay, maybe it’s still going to be a good stock but it’s not quite ready to take off. And so then I would take my position off the table and then wait. So if you’re taking this stock you may want to consider a stop like that, something like that, and then we just need to see this move a little bit higher.
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