Yesterday I walked through a bunch of cheap and good stocks that none of us had ever heard of before…
Because they were moving yesterday AND the only thing that matters is VWAP.
The letters and numbers change, but the trade remains the same.
I can pull up a stock I’ve never heard of before right now… and if there’s a catalyst that has it moving… VWAP willing, I can trade it.
Sell into the move, Blanche!
My watchlist was loaded with letters that mean nothing to me… VYGR, EZFL, NAOV.
Does anyone know what these are?
Because I don’t.
I’d never heard of those stocks before yesterday.
And in today’s newsletter, I’m going to show you how to trade stocks you’ve never even heard of… to make what would take 1,000 years in a bank.
2 MINUTES OF CAREFUL ANALYSIS
I pulled up NAOV because someone else pointed it out to me.
And all it takes is a few minutes of careful analysis.
Looking at the chart, NAOV had already made a pump… so I marked the high of that move with a red line for future reference.
Is the stock above VWAP? Yes, that’s bullish.
But then it moved back below, so things could be getting worse.
Continuing on, NAOV then moves back above the VWAP, and then retests but holds it multiple times… the trend is intact.
Remember that red line?
When a stock is above VWAP and breaks a new high… that’s a buy.
And there you have it… a few minutes of analysis and a VWAP trade presented itself.
New high, that’s a buy
Well the algos are programmed to buy new highs.
Not only that, but the short sellers are also looking to cover on new highs… this is where it gets risky for them to hold.
Given that kind of knowledge, a new-high break above VWAP is an easy call.
And what happened next was a .20 move on a $2 stock… that’s 10%
How long would it take you to make that in a bank?
1,000 years is how long…
This is why we are active and loving it.
Now take a look at the other no-name stocks from my watchlist yesterday.
EZFL was a buy earlier in the morning (pre market), but then it moved back below VWAP before the market even opened.
Notice where EZFL found support though?
The stock went right back to where it started.
It found support there and began a move back above VWAP.
The algorithms were hard at work yesterday.
Prior levels of significance act as support
This was a buy early in pre market trading… but on the open, the stock broke below the 1-minute VWAP and VYGR headed right back to the multi day VWAP (blue line to orange line).
Algorithmic trading at its best
Seriously… and true VWAPians already know what I’m talking about.
You’ve seen what VWAP can do with garbage no-name stocks like the ones above.
Just wait till you see what it can do during earnings season.
This is when VWAP really shines.
And you don’t have to wait long…
Tomorrow morning, in fact, I’ll be talking about exactly that during a special LIVE trading event that you won’t want to miss.
We’ll unwrap VWAP and talk about the plans for the upcoming earnings season… starting with the financial stocks reporting this week.
It’s about to get real… so don’t miss your opportunity to be on top of it all.
Until then, we’ve still got a full day of LIVE trading ahead of us, so let’s get to it…
It’s going to be a fun one as always…
Kenny “The Warlock” Glick
October 12 2021