Did you miss our trade on Abbvie (ABBV) yesterday? Well, it’s not too late. Still going! (June 27, 2019)

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ABBV AGN ABBV 

I want to look at AbbVie ( NYSE: ABBV ). The other day the company reported that they are buying Allergan ( NYSE: AGN ), this was on Tuesday. Allergan ( NYSE: AGN ) popped way up because they’re buying the company and AbbVie ( NYSE: ABBV ) just really, really got crushed.

Fortunately for us, and I talked about this in the forum during this day and I was saying, “You know it looks like $65.00 could probably be a pretty good low here, a tradeable low.” That turned out to be correct and that wasn’t great chart reading on my part it was just simply looking at all the volume here and then the stock kind of stabilized, it stayed above 65.00. I had noted that if you want to you can buy some, hold it overnight and wait for the next day. But there is always a little more risk associated with that and ultimately it didn’t really matter.

So we were trading live the next day and I got right on to AbbVie ( NYSE: ABBV ) even though the stock gapped up. I kind of expected the stock to gap up, it gapped up a little over 2 percent but it had been down so much, down 16 percent, it wasn’t down on bad news. They didn’t miss earnings, they bought a stinking competitor, they bought a company.

And so it was down, in my view, a lot just on reallocation of stocks by large shareholders of AbbVie ( NYSE: ABBV ) and Allergan ( NYSE: AGN ). If you own both of them and they are acquiring, one is acquiring the other you are going to move some stock around. I thought that was what was happening so we got into this and bought it intraday, first thing in the morning. And I said, “Just hang on to it overnight.” And that is what traders did, we still have quite a few traders in it. And so I am doing this video really for you guys, the people that are already in it.

The stock is still squeezing; I think that this is really the gap, right here. I don’t know whether the stock can fill that gap, no clue, I won’t tell you otherwise. But if the stock starts trading above this level this is DEFINITELY just like helium here. There is NO emotional commitment anywhere from like $70.00 up to $78.00 or $79.00. So if the stock breaks through the opening for the 25th and then where it tested it just today, this stock could go much higher.

So if you are already in or if you are still in, if you are a member, I say just stay in and keep like a 2 percent stop on your position. If you are interested in getting in, wait for the stock to get to above $70.00; when it moves above $70.00 jump in (I am just giving you kind of a formula), start with a 2-point stop loss. You are buying at $70.00, keep your stop at $68.00 and then just trade that accordingly. This stock was really good to us and I do kind of think it is going to continue to run.

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