Observe And Report, A Choppy Inside Day
Knowing when NOT to trade is great.
Yesterday morning was an example of this.
You know what was happening yesterday morning?
Squadoosh – It’s a technical term for choppy, doing nothing or squat.
You know what I like to do on days like that?
I like to sit back and observe.
You don’t have to come in every day anxious to jump on a trade.
Trades always come, so just chill out and wait for the opportunity to present itself.
Breathe In the VWAP, Breathe Out the Confusion
Opportunity presented itself in Corvus Pharmaceuticals (CRVS) with a Blue-Sky Breakout.
But it took something a lot of traders lack… patience.
So today I’m going to show you why I’m so excited to get my service up and running (be patient, it’s coming soon) with a deep-dive into the CRVS move that just took a little bit of time, and patience, to reveal itself.
And as always…
Catch my rolling watchlist here, as well as my daily Warlock Watchlist at the top of ThisIsVWAP.com.
THE VWAP SHUFFLE
This morning was all about being calm and letting the trade come to you…. Corvus Pharmaceuticals (CRVS) did just that.
Take a look at what the stock was doing in the morning… just chopping around the VWAP.
CRVS broke below the VWAP and touched the closing price from 2 days prior at $5.32, then got pushed back above the VWAP testing premarket highs… chop, chop… back and forth.
Morning Chop In CRVS
CRVS never got back down to the low. In fact, each subsequent low was higher than the last.
After making a 3rd higher low, the stock broke above VWAP and made a strong move with increased volume to break above the day’s high and the next level of concern at $5.80 (day’s high from 2 days prior).
The stock pulled back on the break, but as VWAPians, we know the VWAP (blue line) is in play.
The only question… will VWAP hold or break?
As you can see in the chart, the stock bounced off VWAP making a move back above $5.80 and continuing to the next level up… the previous day’s close at $6.17.
Higher Lows, VWAP break
One price level begets the next.
This is the language of the markets, It’s all in the algorithm.
And there was only one level left to a Blue-Sky Breakout in CRVS… the 52-week high at $6.90, set the day before.
CRVS accelerates on the break
Who cares… there was more buying than selling. That’s all that matters when trading the markets.
The real lesson is that being patient through the chop and paying attention to the little things got us paid.
When trading these “insane” names, as I like to call them… always be on the right side of VWAP.
And this is why I am so excited to get my service launched… coming soon… because trades don’t always happen on cue when I’m in the Money Morning LIVE room.
The trade in CRVS took longer to develop, but I was all over it for the rest of the day… and that’s what I’m excited to be able to share with you in the future… more WARLOCK!
I assure you it’s all in the works and coming very soon… patience please.
Keep paying attention, let it all soak in.
And on that note…
Join me LIVE every day at 9:30 a.m. ET and let’s keep this train moving.
Check out my rolling watchlist here, as well as my daily Warlock Watchlist at the top of ThisIsVWAP.com.
Kenny “The Warlock” Glick
September 22 2021
Leave a Reply