Hey there, VWAPians!
Stop me if you’ve heard this one before…
The market never goes down.
Or how about this one?
Never short the Qs!
Sounds familiar, right?
If you’ve joined me in my Warlock’s World, you’ve undoubtedly heard me say these two phrases anywhere from 5,000 to 10 million times!
And if you by some MIRACLE haven’t heard me say this yet, come catch me talk about it while I crush VWAP trades in real time at 1 p.m. ET today RIGHT HERE in the big room!
Maybe more than any time in the past year, the last WEEK has offered more opportunities to successfully short the Invesco QQQ Trust (QQQ) — which I refer to as the “Qs”.
But Kenny, the Qs went up Thursday! They finished green!
That’s right. They did go up. We even SMACKED a VWAP trade to the upside during yesterday’s pop-up 1 p.m. session…
QQQ went BLUE LINE TO ORANGE LINE Thursday
Great trade, right? So, why am I seeing red flags?
I talked about it in my Warlock’s World, and I want to go over it again right now. Plus, I’ll answer a very important question asked during one of yesterday’s LIVE appearances — and the answer is something every trader should heed.
First, I want to talk about something that I’ve been thinking about.
Someone asked me during Money Morning LIVE about what to do because they blew up their account.
This question hit me right in the gut. Why? Because I’ve been there.
Throughout my trading career, I’ve blown up my account FIVE times.
I’m familiar with that gut-punch feeling of giving away your hard-earned cash.
But now I’m also familiar with the ways of VWAP and making sure that NEVER happens again.
I didn’t have a Warlock on my team when that happened. But you do.
I’ve talked about this before. But blowing up your account may be more than simply bouncing back from a bad trade.
Here’s some things you can do to get back on the horse after blowing up your account:
- Get your head right – The psychological drain of losing money can be profound. That’s why I have my guy Coach Brian King teach his Foundations class in my Warlock’s Worldevery day at 11 a.m. ET to help VWAPians with EXACTLY this.
- Get your charts right – To make sure you’re not reading the wrong tea leaves, it’s CRUCIAL to make sure you’re seeing the right set-ups on your charts. That’s where my brother 8-Baller comes in. Not only does he break down my trades in his Daily Decode session every day at Noon ET, but he teaches in-depth charting tutorials. They don’t call him the Fractal Assassin for nothin’.
- Go back to what works – Keep it simple. Trust the VWAP. Stick to the reversals. Stay disciplined. Get back in the ebb and flow. And revisit those winners. Don’t give up!
Remember, I’ve blown up my account FIVE times. And I’m the GREATEST trader on Earth.
Look at how I bounced back. VWAP was the key to MY success. And it’s the key to YOURS, too.
Now, back to my favorite topic — the Q’s.
On Thursday, we let VWAP guide us to a win on QQQ… And Longeveron (LGVN) AND Society Pass (SOPA) thank you very much!
So what’s got the Warlock SO bearish?
One answer…the Proshares Ultra VIX Short Term Futures ETF (UVXY).
This security is a volatility measure of the market. Basically, when the market goes DOWN, UVXY goes UP.
But it’s literally DESIGNED to go down — going up isn’t normal for UVXY, so when it happens, you need to pay attention. It’s the MOST important thing you want to watch during the day.
And if stocks are recovering and the UVXY doesn’t die and remains stable… that means there could be a LOT more selling left in the market.
After DUMPING on Wednesday, the market came roaring back on Thursday.
But UVXY hung around at an elevated level.
Look at when I zoom out on QQQ vs. UVXY since the selling started a week ago. You can see that even though the Q’s bounced yesterday, the UVXY held its ground — that’s a red flag.
Going into the market close Thursday, I spent time preparing an attack for the next day.
What I didn’t do was open a position.
But my concerns about the UVXY are still just an opinion. Speculation. And I don’t trade on speculation.
I trade on what’s actually happening with the market. And that’s VWAP.
Because even though I’m the GREATEST trader in the GALAXY, the market is RIGGED and CRAZY.
I’m not opening a short position only to watch this INSANE market gap up at the open and leave me holding the bag.
But that doesn’t mean that I can’t get ready for what could happen.
So I make sure my charts are right, that I’m watching the only trading indicator you’ll EVER need, and then I WAIT.
And when that VWAP move happens, BAM, I’m right there!
That’s all for now, VWAPians, but I hope you have a GREAT weekend.
Best of luck in your trading!
Kenny “The Warlock” Glick
December 03 2021