RECAP: Late-Day VWAP Magic and Why I’ll Be Cash By July 12
Thank you so much for coming to my special afternoon session today!
I hope you learned a lot about me and my trading methodology, and why I always say Volume-Weighted Average Price (VWAP) is the only trade you’ll ever need!
I hope you had a little fun, too…
Don’t be jealous of my VWAP trading smock, you guys
My primary goal over the next few weeks is to walk you through the various ways I utilize VWAP, which includes stalking volatile stocks at the opening bell (watch me trade LIVE every day at 9:30 a.m. ET here!), and – as you saw this afternoon – sometimes hunting stocks and options around the close.
In fact, I expect to become more active in my afternoon trading as earnings season rolls around.
However, as we discussed LIVE today, I also plan to be at least 95% cash by Monday, July 12 – and I’ll tell you again why right now.
I’ve said it before during my LIVE trading shows, but it bears repeating:
Earnings season is VWAP’s time to SHINE.
Because the ideal VWAP stock is one that’s liquid and has lots of VOLUME (the basis of the VWAP, after all), and when do you get lots of volume? Around earnings!
That’s why the start of a new quarter often feels like Kenny’s Candyland – it’s when companies begin releasing their quarterly financial reports, and anyone who’s been trading more than a week knows that earnings often equate to volume and volatility in the underlying shares.
So when I’m cultivating my daily Warlock Watchlist, I often use the Earnings Calendar as a jumping-off point. That’s why stocks like Micron (MU) and Walgreens Boots Alliance (WBA) were on my radar this morning.
And guess what?
Earnings season is about to get real hot the week of July 12, with several big banks like Goldman Sachs (GS) and JPMorgan Chase (JPM) getting the ball rolling.
BUT there’s something else on my radar that could coincide with the start of earnings season, and it’s something you’ll rarely hear me say: The market could go down!
Yes, regular viewers of my This Is VWAP LIVE trading hour have heard me say a million times, “The market never goes down!”
That is usually true, especially these days, but obviously the market DOES go down SOMEtimes… and a batch of ugly earnings reports could be just the catalyst to shake things up.
That’s part of the reason I expect to be at least 95% cash by July 12.
The other primary reasons? Well, to start, I’m going on vacation that week, but even if I weren’t, I’m a day trader, not a buy & hold investor. I rarely hold trades overnight anyway, because I like to be nimble like a NINJA.
However, don’t panic yet and start stuffing your mattresses with cash.
IF the market is truly going to sell off (which is healthy sometimes), it would likely start with a double-bottom break for the Invesco QQQ Trust Series 1 (QQQ) around $352 and change — right around the low print of the June 29 candle, which held today.
Watching the QQQ double bottom
Because IF a sell-off is gonna happen, I think it could happen in the next couple of weeks.
Looking ahead, expect several earnings names to emerge on my Warlock Watchlist, and I’ll continue to trade my running list of about 30-50 go-to VWAP names that change less frequently.
Lately, the running list has included stocks like Peabody Energy (BTU) and Marin Software (MRIN), the latter of which I’ve been CRUSHING, as many of you witnessed LIVE at 9:30 a.m. this week.
I’ll continue to keep tabs on these stocks for potential VWAP trades; as you saw this afternoon, I’m watching MRIN shares as they approach a previous ceiling around $17.73
This afternoon in fact, we took a look at Transocean (RIG) together, thanks to encouragement from the audience, and came up with a pretty decent trade idea…
So make sure you’re watching me at 8:30 a.m. ET on Money Morning Live, and then stick around at 9:30 a.m. for another hour of LIVE TRADING, where you can Ask Me Anything and throw out YOUR favorite VWAP tickers in chat.
Kenny “The Warlock” Glick
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July 01 2021