Who Cares About Owning Stocks?
Hey, VWAPians!
I’m legitimately the greatest trader on Earth.
I don’t know if there are traders on Mars or Uranus (heh), but if there are, I’m better than them too.
Why?
Well first, I have NO fear. And second? VWAP.
VWAP makes every day the same as every other day, including Black Friday’s bloodbath.
Holding overnight is a sucker’s game. The market is CRAZY. You could walk in this morning and be absolutely done with your trading career.
OR you could be like me, trading 1-minute Multiday VWAP reversals on stocks that reported earnings or are moving on volume… and be the (second) greatest trader on Earth.
I prove this again and again EVERY DAY starting at 8:30 a.m. ET right here on Money Morning LIVE.
Then, I hop into my Warlock’s World and show the consistency of VWAP trades from 9:30 to 11 a.m. ET.
It’s like that movie Groundhog Day. I’m Bill Murray, living the same day over and over again, except every day might be the BEST day of trading I’ve ever had.
The beauty of trading VWAP is flexibility. As long as I’m on the right side of VWAP, I’m A-OK.
Monday in my Warlock’s World, for instance, I took Biofrontera (BFRI) for a ride on the way up and down.
Before I get to that trade, though, a note about the bugs we’re working out in the customized VWAP charting software I plan to deliver to my Warlock’s World family the SECOND it’s ready for consumption: I understand how frustrating it is to wait longer than expected for my new charting platform.
I want it now, too, Blanche. But I also demand perfection.
So I appreciate your patience while the developers and I work overtime to make sure you’re getting the BEST, because that’s what I deliver, and it’s important to ME that YOU get what you deserve.
If you’ve been with me in my Warlock’s World, you know that I’ve traded Biofrontera (BFRI) the last couple of full trading sessions. I LOVE to revisit VWAP winners (and you should too).
But just because I love to come back again and again doesn’t mean that I’m looking to hold onto this stock.
I don’t know (or care) what this company does. The stock is probably going to ZERO soon (that’s what I say about them all — don’t mistake hyperbole for a Citron-like short position, Karen).
Without the emotion attached to holding a stock and hoping it goes up, I can come back on the upside, downside, and everything in between.
You know what the real CRAZY thing is?
After riding BFRI up in the pre-market on Monday, look what happened right before the market opened.
BFRI 1-minute chart before the open Nov. 29
Now look at the stock volume (blue bars at the bottom of the image above), and how just after that initial volume surge, BFRI broke back BELOW the 1-minute VWAP and then right past the Multiday VWAP.
Blue line to orange line.
Before this downside VWAP break, I had already traded this stock to the upside twice.
But when a stock breaks VWAP to the downside, the long trade is done.
In summary: I was long, then BFRI broke VWAP to the downside, and I changed teams and went short.
The stock dropped 30%!
If I had bought BFRI stock and held onto it, tucked it in like one of my kids, I probably would have been crying at such a huge drop.
But I don’t have such weaknesses. Who cares about owning stocks?
Not me. And not my brother 8-Baller, either.
Sometimes I get emails saying “Warlock, you’re too fast! Your brain must be so big!” (By the way — stop emailing me, Mom!)
Look, I get it. That’s why my man 8-Baller digs DEEP into my trades EVERY DAY with the Daily Decode at noon E.T. in my Warlock’s World.
Not only does 8-Baller break down my trades, but he offers plenty of charting education. They don’t call him the Fractal Assassin for nothin’.
You’re missing out BIG TIME if you’re not there, learning to master the art — and it is an art — of VWAP day trading.
Get on the right side of VWAP, get on the right side of LIFE.
That’s all for now, my VWAPians. When I get ANY update for my new charting platform, of course, my Warlock’s World crew will be the FIRST to know.
Best of luck in your trading!
Kenny “The Warlock” Glick
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November 29 2021
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