I hope everyone had a great weekend!
I also hope everyone joined me in my Warlock’s World on Friday, because as the market was tanking, WE were CLEANING UP!
That’s why I keep saying this is the greatest market ever — it continues to pay us!
If you look underneath the hood, it’s not so pretty. I call it the stealth bear market.
While “investors” were wetting their pants worried about their portfolios, we were focused on what matters — price, VWAP, fear, and greed.
Let all these suckers believe they can buy the dip and get paid. It works until it doesn’t.
What does work is VWAP.
Be sure to catch me trading what does work LIVE today in the BIG ROOM from 1 to 1:30 p.m. ET.
If you’re not a part of what I’m doing, you should be. It’s the ONLY way to trade.
That’s not saying that I’m always right. If you’re on the right side of VWAP, you’re on the right side of life, but even I take losses sometimes… and anyone who says they don’t is flat-out lying.
Like on Friday, I took a small loss on DocuSign (DOCU).
DOCU plunged after earnings
I was thinking that stocks that report earnings and gap down usually find buyers.
While waiting for signs of a bottom, I got impatient and entered a position.
Thankfully, I set my stop, and the loss wasn’t that bad.
I think that’s why what we’re doing in the Warlock’s World is SO important.
My goal is to TEACH you HOW to trade VWAP. I’m NOT saying buy this or buy that or that I’m the ultimate stock picker (that would be my dad).
In fact, most stocks are WORTHLESS!
My point is, if anybody in this industry ever says they don’t take losses? RUN.
EVERYBODY takes losses. It’s about mitigating them and getting to the winning trades (of which there are many in my room each week).
Last Thursday, the market was RIPPING higher. But I wasn’t convinced.
Why? The Proshares Ultra VIX Short Term Futures ETF (UVXY).
Now, Mark Sebastian may be the volatility expert, but I’ve learned that this security, which is a volatility measure of the market, is CRUCIAL.
UVXY is designed to go down. When the market goes DOWN, UVXY goes UP and vice versa.
So as the market rallied on Thursday, I noticed that UVXY remained stable. When this happens, it means there could be a LOT more selling left in the market.
And look at what happened to the Invesco QQQ Trust (QQQ).
QQQ got SMACKED to the downside Friday
I’m not trying to gloat.
I don’t NEED to remind you that I’m the GREATEST trader on Earth.
What I AM saying though, is this is why you gameplan.
I KNOW there were a ton of traders who were bullish on Thursday, who woke up on Friday with their faces ripped off.
To take it one step further, this is why you have to be your own trader.
This is why this whole situation with UVXY was SO important.
I didn’t say “buy puts on the Qs” on Thursday. I said “if this, then that.” Because I’m trying to TEACH you!
That’s why I am constantly stressing that I don’t know what’s going to happen. I only know — and I only trade — what IS happening.
And what IS happening is dictated by PRICE and VWAP.
I know losses are frustrating — I’ve had enough of my own to be all too familiar with that feeling!
That’s why I listen to the wise words of Coach Brian King, who takes over my Warlock’s World every day at 11 a.m. ET with his Foundations class. He’s all about upgrading your mindset.
Then, my guy 8-Baller breaks down everything — my trades, his trades, charts, the market, EVERYTHING — at noon ET.
What I’ve been stressing today is gameplanning.
My goal with my Warlock’s World is that the combination of myself, Coach King, and 8-Baller, will have YOU prepared to tackle these VWAP trades like an expert in no time.
And if you’re craving more Warlock, be sure to catch me LIVE in the BIG ROOM today at 1 pm.m ET!
That’s all for now, VWAPians — let’s make it the best week ever.
Best of luck in your trading!
Kenny “The Warlock” Glick
December 06 2021