Hi VWAP family!
There are THREE things that I’m sure of:
- The market is RIGGED.
- I am the GREATEST trade in the world.
- My buddy Bobby “8-Baller” Eight is a pretty close second.
My Warlock’s World crew is already VERY familiar with 8-Baller, as he hosts the Daily Decode session each day in our private trading room.
He’ll take a slowed-down approach to some of the VWAP trades I made earlier in the session, teaching a lot of the fundamentals that I might not touch on during my 90+ minutes of LIVE trading each morning.
And now YOU get to witness the magic of 8-Baller for yourself — he’ll be holding down the VWAP fort from 10:30 to 11:30 a.m. ET TODAY in the Money Morning LIVE room!
But back to my list…
No. 1 — that the market is rigged — is a FACT. That’s why VWAP is such a POWERFUL tool. It cuts through the noise and translates the language of the market from ALGORITHM into INSTRUCTIONS on how to craft winning trades.
No. 2? I mean… I thought it was pretty obvious by the VWAP trades I’ve been slaying for months, pal.
And I PROVE this again and again every day in my Warlock’s World, where my fellow VWAPians and I witness the strength of VWAP.
But before you can witness anything, you have to get your charts right. This is the holy grail of trading.
Luckily for my Warlock’s World members, we have an EXCLUSIVE TOOL coming VERY soon that will make sure they can trade my “blue line to orange line” patterns without jumping through hoops.
After all, I want to make sure you’re on the RIGHT side of VWAP, which is the RIGHT side of life.
Speaking of the right side of the trade… There were a couple stocks making BIG MOVES my favorite way on Thursday — VWAP reversals based on earnings reports, opening the door to one of my favorite trades… The fade.
This fade isn’t like the haircut I used to rock in the ’80s, but I still make it look good.
We played the fade on Nvidia (NVDA) and Sonos (SONO) and got PAID.
All because of VWAP, baby!
Lifetime Warlock’s World members knew I was looking at Nvidia (NVDA) after our special earnings session Wednesday night.
Like a lion stalking prey, we had our roadmap at the ready. How? Because we got our charts right, Blanche!
What happened next? NVDA blew out earnings… and blew out any chance of us getting in at our initial targets.
But we didn’t whine, we didn’t complain that we missed our trade. We kept our eye on it. And look what happens next.
The faders saw NVDA hit a double top at $325, and I shorted the stock immediately at $324, putting a stop at $325 to define risk.
The stock then hit the 1-minute VWAP (blue line), tried to stay there for a second, then broke the VWAP to the downside.
Remember, one of my major tenets is “Any stock that reports earnings and breaks VWAP, trade in that direction.”
The same candle that provided the VWAP break preceded a 5-point drop. So this short trade had defined risk parameters and was a great example of how to PLAY the FADE.
Immediately after we FADED NVDA and got PAID, we got something similar with Sonos (SONO).
SONO was gapped up in premarket from earnings. The price briefly fell to test the Multiday VWAP (dashed orange line) before the bell, then bounced back over the 1-minute… only to make a more DEFINITIVE downside break of both trendlines around the open.
And look what happens next.
It was a TEXTBOOK 1-minute Multiday VWAP reversal — No. 755 in a row, probably — providing a GREAT short opportunity.
This is the way you trade. This is what you do. This is how you make money trading this market.
That’s all for now, my VWAP family. I know we’ve been TEASING our BIG announcement for a while, but we’re making sure everything’s juuuuuuust right before we unleash this GAME-CHANGING tool, so stay chilly.
Kenny “The Warlock” Glick
November 19 2021