Happy Friday, VWAP heads!
Although being at the beach this week has been relaxing, I can’t pretend I’m not a LITTLE excited to crawl back in the ol’ trading hole on Monday.
After all, this week marked the start of my FAVORITE TIME OF YEAR (well, one of four, at least): Quarterly earnings season!
Because guess what?
Earnings season is also OPEN SEASON – stocks that I normally don’t trade a lot are unleashed into the open pasture, and The Warlock is here to pick ’em off.
So today, I’m gonna keep it pretty short and sweet for you, with a little sneak peek at some earnings names that could make their way onto my daily Warlock Watchlist next week.
I’ll be back in action from Jersey on Monday, so be sure to watch me on Money Morning LIVE at 8:30 a.m. ET, and then stick around for my full trading hour at 9:30 a.m.
We have so much to catch up on…
Heavy Hitters Could Move Into the VWAP Rotation
As a disciple of the VWAP, I’m looking for stocks with lots of VOLUME; the more volume, the stronger the corresponding VOLUME-Weighted Average Price signal will be.
And at no other point in the year do we see more relatively predictable volume and volatility spikes than during quarterly earnings season.
In fact, earnings can not only open the door for a few of the low-dollar stocks to pop up on my radar, thanks to a surge in liquidity… They can also put some heavy hitters in my crosshairs – stocks that I don’t trade a whole lot.
For instance, while Amazon (AMZN) won’t be reporting next week, when the Bezos Brood does ultimately unveil the firm’s second-quarter figures, the resulting price action could put AMZN on my daily Watchlist.
Now, typically you don’t see me trade AMZN a whole lot throughout the year, partly because the stock is on the pricier side (it closed Thursday above $3,600), and it doesn’t usually make the kind of big chart swings I like – not enough to justify all that risk, at least.
But give me a VWAP break on an earnings report and I am THERE.
That’s why next week, you could see fellow FAANG stock Netflix (NFLX) crop up on Wednesday’s Watchlist, after the streaming company reports earnings Tuesday night.
However, don’t expect NFLX to stay on my list for long…
Stocks like this tend to go back on my Avoid List after Earnings Day.
There are also a few other notable names set to report next week, ranging from blue chips to airlines and everything in between…
Here are some names we may be dissecting during my LIVE trading hour (which kicks off at 9:30 a.m. ET each day) at various points next week:
These aren’t even ALL the names on the calendar next week!
In case you forgot your bifocals and your partner isn’t around to lend you theirs, among the stocks that could make earnings noise next week:
- Dow components IBM Corp (IBM), Coca-Cola (KO), Johnson & Johnson (JNJ), Intel (INTC), and American Express (AXP)
- Commodities names Steel Dynamics (STLD), Kinder Morgan (KMI), Cleveland-Cliffs (CLF), Freeport-McMoRan (FCX), and Schlumberger (SLB)
- More bank names like Zions Bancorp (ZION), UBS (UBS), and Capital One (COF)
- Travel titans United Airlines (UAL), Alaska Air (ALK), American Airlines (AAL), and Southwest Airlines (LUV)
- And even a few tickers that just plain make me laugh, like Hope Bancorp (HOPE) and National Beverage (FIZZ)
Ya know, just to name a few…
It should be exciting stuff!
I’ll let post-earnings momentum help me whittle down this Watchlist each day, and then you can watch me stalk my prey LIVE at 9:30 a.m. ET on Monday and beyond!
See you in the room, and have a great weekend.
Kenny “The Warlock” Glick
2 responses to “It’s OPEN SEASON for VWAP Next Week”
July 16 2021