Liquid and Loving It

Hey there, VWAPians!

The greatest trading market of all time continues.

While the entire market BLEEDS RED, I am liquid and loving it.

That means I’m not doing call spreads.

I’m not swing trading.

I’m not investing.

I’m using Volume-Weighted Average Price, or VWAP, to make money with quick intraday trades on both the long and short side.

If you’ve joined me in my Warlock’s World, you have beared witness to how AWESOME trading VWAP can be — even on days like Tuesday, when the Dow dropped more than 650 points.

And if you’re not in my Warlock’s World family, come watch me obliterate VWAP trades in real time at 1 p.m. ET today RIGHT HERE in the big room!

It doesn’t matter the day. It doesn’t even matter the stock! EVERY stock has a VWAP story, and I’m Scheherazade.

I’m telling these VWAP stories EVERY DAY starting at 8:30 a.m. ET on Money Morning LIVE right here.

Then I shake, rattle, and roll into my Warlock’s World and trade with my fellow VWAPians from 9:30 to 11 a.m. ET.

I’m going to let you in on a little secret… even though I’m the GREATEST TRADER ON EARTH, I don’t know what’s going to happen. I REACT to what happens.

I may have a brother from another mother named 8-Baller, and he may be MAGIC, but I can’t predict the future.

I react to what’s happening around me, and around the market. Luckily for us, we know how the sausage is made. We have the recipe. And that recipe is VWAP.

There’s a reason I always say that VWAP is the heartbeat, or EKG, of the market.

The market is RIGGED. The algorithms that dominate the market are like magnets to VWAP.

So if you get your charts right (and the bugs in my customized charting platform are being worked out as we SPEAK), and if you’re QUICK enough, you can take advantage of these moves around VWAP, and that’s EXACTLY what I teach in my Warlock’s World.

I don’t do alerts. I TEACH how to trade VWAP in real-time, so that YOU can go and hunt juicy VWAP trades on your own.

On Tuesday in my Warlock’s World, I told VWAP stories with Matterport (MTTR) and TG Therapeutics (TGTX), to name a few.

One was a textbook 1-minute Multiday VWAP reversal, and the other was a great example of how correct charting can help establish a trade and define your risk.

That’s why the VWAP software I wanted to release this week is briefly on ice — I had to pop the hood and make sure everything was EXACTLY what my VWAPians need for trading success, and I demand nothing but perfection for my Warlock’s World fam.

We’re so close. Thanks for waiting with me.

Before I forget, let’s talk about those MTTR and TGTX trades…

I traded quite a few different names on Tuesday… I can’t even remember them all!

MTTR and TGTX stuck out to me for different reasons, as each are GREAT examples of not only VWAP trades, but why your charts are SO crucial.

Let’s start with MTTR. This stock is one of those “crazy names” that I’ve been going back to the well on.

First, let’s peep the setup.

When you have a stock that’s RIPPING to all-time highs, and has an engulfing candle, that’s known as a blow-off top.

See the candle marked with the high of $34.85? That candle marked not only a new high, but it completely engulfed the prior 1-minute candle.

This is a technical indicator of a potential reversal.

MTTR plummeted after an engulfing candle on Nov. 30

Then look what happened next. MTTR‘s price declined just as fast as it rose.

The stock broke back below the 1-minute VWAP — a clear sign you don’t want to be in a long position — then broke the pre-market highs around $33.

Then the stock completed the blue line to orange line maneuver that is at the heart of VWAP trading.

If you didn’t have your charts right, failed to notice that engulfing candle, or worse — ignored the break below the 1-minute VWAP — you could have had your FACE ripped off.

Lucky for Warlock’s World members, they know if this thing breaks VWAP to the downside, it’s probably going a LOT lower.

And because they DID know about VWAP breaks MTTR provided a YUUUUUGE opportunity to go short.

Next, let’s take a look at TGTX.

This company must owe the FDA money or something, because the stock got absolutely CRUSHED in the pre-market.

But I don’t care what the company does. The stock had VOLUME and PRICE ACTION. That’s all I need.

Let’s take a gander at the chart.

TGTX fell off a CLIFF ahead of the bell Tuesday, but when it made that bottom just below the $12 level (a whole number!), I marked it on my chart (the lowest horizontal red line) as a potential stop-loss on a long trade.

TGTX plummeted after an engulfing candle on Nov. 30

When it looked like the direction was, indeed, higher, I made an entry at $12.50 (a half number!). So now I had my defined risk.

THEN, when the shares gravitated toward the 1-minute VWAP — because it’s a MAGNET, Blanche! — and broke it to the upside, CHA-CHING.

I took some profits around the VWAP break at $14.80, because I never exit my entire position at one price… and TGTX ended up topping $15 before I fully exited my position.

So even this stock, which dropped 30 friggin’ percent today, provided an opportunity for a profitable VWAP trade because I had my charts right.

See how important charts are? That’s EXACTLY why we’re waiting until everything with my new charting platform is absolutely PERFECT before we release it into the wilds of the Warlock’s World.

Of course I’m frustrated at the delay, but hey, I’d rather a few days of frustration than not being able to DOMINATE VWAP TRADES — even on days when the rest of Wall Street is running scared.

That’s all for now, VWAPians, but I look forward to trading with you at 1 p.m. ET today RIGHT HERE in the big room!

Best of luck in your trading!

Kenny “The Warlock” Glick

---

Comments