Still the Most Consistent Trade of My Life
Hey, VWAPians!
Catch the last few minutes of Money Morning LIVE right now… followed by a full hour of yours truly at 9:30 a.m. ET.
If you aren’t familiar with VWAP, it’s time to get familiar… click here.
Why is this so important?
If you’ve watched me at all, then you know it’s all about VWAP.
The right side of VWAP, the right side of the trade – the right side of life, my friends.
VWAP has been my rock since I saw the light back in 2012, and today I’m going to touch on the Most Consistent Trade I’ve Ever Seen.
Chart: courtesy of thinkorswim
If I’ve said it once, I’ve said it a thousand times – The market never goes down.
Well it’s been going down lately (sort of)… including this morning.
The QQQ isn’t as strong as it was a few weeks ago, and that’s why we’ve been going short on the Qs lately.
Pullbacks are a normal part of the market.
As long as I stay on the right side of VWAP, I’m on the right side of the market… whatever it does next.
And yesterday, was proof that the QQQ under the VWAP is still the greatest buy EVER.
Don’t miss me & VWAP in action… LIVE in the Money Morning LIVE room at 9:30 a.m. ET right here.
To prepare, you can view my rolling watchlist here, as well as my daily Warlock Watchlist at the top of ThisIsVWAP.com.
THE GREATEST BUY EVER
One look at the daily chart below and you’re reminded that the market never goes down.
For years, we’ve been buying every time the Qs opens down and crosses back above the VWAP.
But narrow in on the last few weeks and it’s not quite as bullish.
That doesn’t matter to the VWAPian though.
We just let the market, aka VWAP, tell us what to do.
And because of that, we’ve been short QQQ quite a bit lately.
Chart: courtesy of thinkorswim
I’ve been doing this for decades… DECADES.
And I’ve never seen something work as often as this one single trade – Buying the QQQ under the VWAP.
Why?
Because the market never goes down… that’s why.
“But Kenny, I thought you just said it’s been going down lately?”
I know what I said, BLANCHE.
Did you look at that chart? Does it look like the market ever goes down?
The market pulls back, so the “they” can transfer wealth from the average joe into the hands of the powerful – but over the long term it never goes down.
And this is why I love the VWAP trade.
I don’t have to predict anything. I just do what it’s telling me… long or short.
Just look at the Qs yesterday.
Coming into the day, the Qs sold off after kissing the VWAP.
Now this alone would have been a short trade with the “finger of god” pattern.
But today, I wanted to show that even in an ugly market… VWAP lights the way.
After finding lows near a “level of concern” from a few days ago, we got one of my favorite patterns – the Kardashian bottom.
It looks like butt cheeks. What can I say, I like to have a little fun with my trading.
I never said I’m an artist, but that’s a butt
Here’s how it goes…
- Moved down and hit/ found support at a level from a few days ago (butt cheek #1)
- Moved back up and made a double top (butt crack)
- Went back down to hold support (second cheek)
- Rallied to break above the double top (butt crack) and the VWAP
- Did the VWAP shuffle and off it went.
And another way to trade the Qs – TQQQ.
Simply put, the TQQQ is a leveraged QQQ product… looking to get 3x the return of the QQQ for a single day.
So at a lower price, it’s still moving in nearly the same increments.
And that’s why you’ll often find me trading the TQQQ, in lieu of the QQQ lately.
Check out the setup in the TQQQ at the same time as the Qs from above.
Chart: courtesy of thinkorswim
You know what they call that?
A Day’s Pay.
Now listen, I’ve been doing this for years on years… on years.
Don’t think that you have it figured out from a little reading.
Spend the time to learn the ins and outs of VWAP trading before you think something is a buy based solely on seeing it trade above.
In addition to VWAP, I am looking at levels, patterns, and years of being humbled by the markets.
So come spend time with me while I trade and talk about everything VWAP, LIVE every day at 9:30 a.m. ET…right here.
It’s going to be a fun one as always.
Check out my rolling watchlist here, as well as my daily Warlock Watchlist at the top of ThisIsVWAP.com.
Kenny “The Warlock” Glick
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September 28 2021
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