Three-Headed VWAP-ian Giant
If you’re a member of my Warlock’s World, yesterday you were in for a special, rare treat.
If you’re not a member… what are you thinking, Blanche!?!
That’s because members were treated to the three-headed trifecta of VWAP mastery that is myself aka The Warlock, the Fractal Assassin aka 8-Baller, and the Maharajah of the Multiday aka Solid Jell-O.
The fabled VWAPian hydra
(And if you don’t know me, get to know me).
Then, my brother, 8-Baller, stepped into my Warlock’s World for the Daily Decode, like he does every day at Noon ET!
Finally, I was able to coax Solid Jell-O out of his forest stronghold and into the Warlock’s World for a special Multiday VWAP coding session.
Word on the street is Solid might have his own, regular segment in the future.
Not only did VWAPians get to bask in my greatness, but they were treated to a breakdown of my trades (and the market) by 8-Baller, before being treated to a breakdown of VWAP by Solid.
Now that’s value.
That’s the kind of value I’m bringing EVERY DAY starting from 8:30 to 9:30 a.m. on Money Morning LIVE, RIGHT HERE.
Then I go straight into my Warlock’s World where I treat my members to high-energy VWAP trades for the opening 90 minutes of the market.
Well today we got something special for ya, Blanche.
As you might have heard, Money Map Press felt SO BAD for leaving you out of our holiday party, that we’re throwing another one!
That’s right, tonight is Mistletoe Mania, where EVERY expert is going to go over their 2021 and their predictions for 2022.
Plus I hear there might be some special treats for attendees. You’re not gonna want to miss this one, Blanche.
SIGN UP RIGHT HERE FOR MISTLETOE MANIA. Be there be square!
As me and my broadcaster, Bababooey, talked about on Monday, Money Map Press has got us running ragged! I think we’re LIVE for 72 hours straight!
So I’m going to the bullpen for Warlock’s World.
You already know my man 8-Baller. He’s a former prop trader who’s now on the side o’ the VWAPians.
So today, from 9:30 to 11 a.m., my usual timeslot, I’m handing the keys to my Warlock’s World over to 8-Baller!
I can’t wait to see just how much he impresses you!
You know what else was really impressive?
My Monday trade on Carnival Cruise Lines (CCL)…
If you’ve joined me in my Warlock’s World, you know that my go-to, my ‘ol reliable, is the 1-minute Multiday VWAP reversal on stocks that have reported earnings.
I’m not kidding when I said that 2021 was the single best year that I’ve EVER had trading this strategy.
As we slowly count down the rest of the year, there’s not a ton of companies reporting earnings these days.
Earnings have a “season” every quarter that typically starts with the major banks.
Usually, the early strength of earnings season can give traders a heads-up to what kind of quarter the market is going to have.
Then again, as VWAPians, we don’t care about that.
We don’t need to worry about missing analyst expectations, or whether a company has a good EBITDA.
EBITDA? What does that even mean?
I’M TELLING YOU – IT DOESN’T MATTER.
I’ve seen this trade work SO WELL, that all of that other stuff is immaterial.
Has a stock reported earnings? Has it moved significantly in one direction or another?
That’s pretty much all we need to know.
Earnings season will be starting up again in mid-January. Just the thought of it has my mouth watering.
For my Lifetime members of my Warlock’s World, we’ve already planned special earnings sessions, where I’ll go over charts and potential moves of individual stocks.
Because I TEACH you how to react, I’m not going to waste your time worrying about earnings per share or revenue or EBITDA.
As a nimble day trader, all I’m looking for is a stock reporting earnings. This generally brings volume, which allows VWAP to shine.
Take, for example, what I did on Monday with Carnival Cruise Lines (CCL).
CCL reported earnings before the market opened. Whether it was good or bad, I couldn’t tell ya.
What I can tell you is that I looked at the pre-market price action and noted several key levels on my chart.
Based on what I saw, I let my VWAPians know:
Key price levels for CCL on Dec 20
The majority of the stock market is traded by algorithms. These algorithms are drawn to VWAP like a magnet. Knowing how they work helps traders like me EXPLOIT THEM.
These aren’t just arbitrary numbers, either. Look at the chart.
CCL 1-minute Multiday VWAP reversal Dec 20
When a stock is above VWAP after reporting earnings, you want to be on the right side.
Right side of VWAP, right side of LIFE.
I notified the members of my Warlock’s World of those key levels just minutes before the market opened. And look what happens next.
The stock drips a little bit as the market opens, then breaks VWAP to the upside 5 minutes into the trading session.
I entered this trade at $17.85 and my stop was at $17.65. That’s a $0.20 risk.
And look what happened, Blanche!
I exited my position in stages on the way up, but CCL ran all the way up to $19.29!
That’s more than a $1.50 per share gain from when I mentioned the stock in pre-market!
All on $0.20 of risk!
This was a textbook 1-minute Multiday VWAP reversal.
What I love about these trades is that the risk is defined. So if I’m wrong, which does happen, I’m not blowing up my account.
But when I’m right!?!
When I’m right, Blanche, I’m “padding that P&L (profit and loss)”, as 8-Baller likes to say.
And now that earnings season is on the horizon? I’m licking my chops. Because there’s about to be a whole lot more of these kinds of opportunities.
And I hope you’ll join my Warlock’s World to be a part of it.
That’s all for now, VWAPians!
Don’t forget that Mistletoe Mania is TONIGHT at 7 p.m. ET! Make sure to reserve your FREE spot RIGHT HERE!
Kenny “The Warlock” Glick
December 21 2021
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