As most of you are probably aware, I will be out of town today.
It’s a sad day when I don’t get to trade LIVE with you, but don’t worry…
But I’m not going to leave you without a little something from me as well…
Let’s take a look at Vinco Ventures (BBIG) from yesterday.
It was too beautiful not to relish.
Can I get a blue line to orange line from the back row?
Look at that chart…
Blue line to orange line
And as you can see below… It didn’t take long to get there.
This wasn’t even the only move yesterday. It was the second potential trade actually.
You see that big spike up in the chart?
Sometimes it really is this easy
We don’t concern ourselves with the specifics of the news though…
All we care about is the price action and VWAP.
News stories and press releases, especially in garbage stocks like BBIG, generally aren’t even “real.”
And that’s why we trade the chart and not the news itself.
Case in point… BBIG popped from 5 to nearly 6.50 in 30 minutes, and by the end of the day it was just about back to where it started.
So much for the “news.”
As much as this holds true time and time again, the fact that there was a news release is what interests us…
The news itself is a potential catalyst that creates increased trading volume and movement.
And that’s when VWAP goes to work for us… as seen in the charts above.
So we aren’t ignoring the fact there was news (or any other catalyst)… we are just ignoring the details of the news because they don’t really matter.
If you want to learn more about the “orange line to blue line”…
I’m hosting a LIVE trading session next Wednesday Oct. 13 at 9:30 a.m.
But for this one, you need to register…
It’s going to be fun and informative… so don’t miss out.
Oh… and the orange line everyone is clamoring on about? There will be details.
As for today…
Don’t miss the Money Morning LIVE family keeping you on top of the markets… click here to tune in…
Kenny “The Warlock” Glick
October 08 2021