If You Want To Trade the “Insane” Names, Use VWAP
Hey there, VWAPians!
Soooooo much going on… how on earth do I keep it all straight?
It’s simple, Blanche.
Just Focus On The VWAP… Don’t Guess, Just React.
Let Price and VWAP be your guide.
As for today, my young VWAPians, it’s all about the QQQ, UVXY, and the BaBIG’s… you know, all those insane pump-and-dump stocks.
You want to trade the “insane” names?
aTyr Pharma (LIFE) around VWAP was pure gold yesterday.
So many possibilities in $LIFE
You know what else was gold yesterday?
Short The Qs! Yeah I said it… and I did it, AGAIN!
But don’t worry, I’m going to break it all down for Yous Guys.
You’ll see why and how the Qs short trade happened yesterday.
And we’ll take a hard look at LIFE, so you know why I love these “insane” names around VWAP right now.
If there’s one thing I know, I’ll be seeing more of the same when I go LIVE at 9:30 a.m. ET this morning, so don’t miss that pure gold either.
I’ll be dropping knowledge bombs, recaps, education, and most importantly… LIVE VWAP trading for your personal growth and enjoyment.
Get on the Right Side of $LIFE…and the Qs.
THE RIGHT SIDE OF $LIFE
The right side of VWAP, the right side of the trade.
Why is this stock I’ve never heard of even a potential VWAP trade? It didn’t even have earnings.
Because it’s in play, Blanche.
Earnings aren’t the only thing that can put a stock in play.
It’s really just about increased interest in a stock that in turn spikes the volume multiples of what would be average for the stock on a normal day.
It could be an event, earnings, product release, or a random news story… it really doesn’t matter as long as trading volume picks up a lot.
But let’s be honest, who even cares what a company like aTyr Pharma (LIFE) is or does?
Seriously, it’s some crazy biotech trash with a groundbreaking this or that.
Sure, whatever Blanche.. we’ll see where it is in a year.
But for now… it’s in play and that’s all that matters.
That’s the beauty of VWAP. I’m not trading the news itself… I don’t have to understand this crap or decide if this is legit or not.
Blanche wants to know about EBITDA? Will this help the EBITDA, Will It?
Who the crap cares?
Not Me, I can tell you that much.
Because 80% of all stocks are worthless. Is that too high? Whatever, I’m not here to invest.
I’m here to trade what IS happening…
And that’s how you make money in the market.
The right side of VWAP, the right side of the trade… and life.
One look at the LIFE chart, and you’ll want to get on the right side of VWAP too.
Using premarket levels with VWAP
The stock moved down on open… then it held a premarket level and headed back above VWAP getting rejected at the open price.
Mark that level on the chart, Blanche.
When LIFE made the next move above VWAP, it broke through the open price and made a 2 pt move.
Ultimately there were a number of trading opportunities as this stock traded around VWAP throughout the day.
One of which was right towards the end of the day.
The stock bounced off VWAP and headed up, breaking above previous all time highs in what I call a Blue Sky Breakout… leading to a high of over $11 in after-hours trading.
BY THE FINGER OF GOD, SHORT THE QQQ
It was the Finger of God himself that set this train in motion yesterday.
Here’s what I mean by that…
He, or She, reached out of the sky and touched the Qs turning the price down after the short-lived move up.
Exaggerate much? Never!
Kenny playing charades: an oil rig sinking…ding ding ding… short the Qs!
What you see is what you get… The Qs tried to make a move up on the open and were swiftly turned away.
Picture an oil tanker sinking in the ocean. The tail kicks up as the nose dives into the water and the tanker then sinks into the depths of the sea, just as the Qs did yesterday.
So what did we do about it?
We recognized the setup and traded VWAP of course.
After the move up, the Qs flipped and when the price fell below VWAP and the low of the day, that was our…cue.
From there it was a matter of one price giving way to another price.
Price levels that were mysteriously already marked on my charts I might add… because I’m awesome!
And as we watched each price fail to the next, all we had to do was stagger our exits.
Do I Have To Say It?
Because if there’s one thing you don’t do… it’s take your whole position off at one price.
I not only stagger my targets, but I also stagger my stops.
That’s professional trading.
You don’t know where a stock is going. By legging out of a trade, you are giving yourself a better chance at managing it for a gain.
As always I’m trading LIVE every day, right here at 9:30 a.m. ET.
Catch my current watchlist at the top of the page… but as mentioned earlier, today is really all about the QQQ, UVXY, and the BaBIG’s… like LIFE.
And there is one big name out with earnings actually, so there’s a good chance I’ll have Oracle (ORCL) on the screen at some point as well.
It really depends on VWAP…
Kenny “The Warlock” Glick
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September 14 2021
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