This Earnings Season, Remember the Formation Flip
Hello VWAPians,
I have magic powers.
Every morning I come to Money Morning LIVE and Warlock’s World to try to give people a glimpse into what I do.
As the Warlock, I’m a magic man. Let me show YOU how to be magical with ME.
Especially now that it seems the bull market from hell may finally be over!
The Warlock in a bear market
Stick with me because I bang out winners EVERY DAY… starting at 8:30 a.m. on Money Morning LIVE RIGHT HERE!
Then I boogie with Bababooey into my Warlock’s World where I LIVE trade VWAP from 9:30 to 11 a.m. and GET UP WITH THE GET DOWN!
And sometimes, like today, I COME BACK to the BIG ROOM at 1 p.m. ET for even more VWAP goodness!
I’m sure you’ve noticed that us VWAPians are starting to permeate every corner of Money Morning LIVE…
Finally, the true POWER of VWAP is being recognized.
And it ain’t just ME, Blanche.
While I’ve had 8-Baller as my right-hand man for years now, it seems like he’s making quite the impression on the folks in chat… they can’t get enough of the Fractal Assassin!
That’s why they’re bringing him center stage! That’s right, going forward 8-Baller will be LIVE in the BIG ROOM from 11 to 11:30 a.m. ET on Mondays and Fridays!
I expect ALL my Warlock’s World members and VWAPians everywhere to show him the love he deserves!
Speaking of Warlock’s World members, EXCLUSIVE earnings sessions for LIFETIME members start THIS WEEK!
Money Morning LIVE’s master of momentum, Garrett Baldwin, will join ME with my LIFETIME Warlock’s World members on Thursday, January 13 from 3:30 to 4:30 p.m. ET, as we take our first look at chart setups and potential outcomes before the big banks kick off earnings season!
When it comes to earnings, I think everyone by now is familiar with the 1-minute Multiday VWAP reversal.
And those who have been paying attention will probably know the “asscrack break” aka the “Kardashian Bottom” formation.
While these formations are incredible for long trades, savvy VWAPians know that, as a bear, I loooooooove shorting stocks.
While many formations are great for long positions, there’s one setup in particular that works great for short trades…
While it’s SUPER important for VWAP traders to recognize repeatable patterns on stock charts intraday, there’s a little, easy secret to take short positions…
FLIP IT.
Not every stock is going to present the Fo’ Sho’ Bro or Dip and Rip. Sometimes stocks will do the exact opposite.
And just as crucial as it is to recognize these bullish kinds of setups, it’s equally important to know the bearish setups.
Not to worry… just FLIP IT!
As much as the 1-minute Multiday VWAP reversal can move from blue line to orange line, it can also move from orange line to blue line.
Nearly any of my patented formations can be reversed, or flipped, and turned into a bearish trade.
For example, the fan favorite “Kardashian bottom” formation.
This formation is GREAT for bullish trades to the upside. But there’s PLENTY of times where the Kardashian bottom is on a chart, but upside down.
On Friday, we saw TWO examples of this!
First, there was Alibaba (BABA).
BABA with the reverse Kardashian bottom on Jan. 7
BABA established the first upside-down cheek of our reverse Kardashian bottom with the then-day’s high around $133.50 between 9:45 and 10 a.m. ET.
Then, BABA established the second upside-down buttcheek with the candle marking the high of the day, $133.88, around 10:15 a.m.
As the stock fell back to the middle of the reverse Kardashian bottom, it told me that if it breaks this level, it could go lower.
And look where that level just so happened to be… 1-minute VWAP.
BABA broke VWAP to the downside, and followed through, confirming the reverse buttcrack formation.
Shorting from the VWAP break to the low of the day was a 2-point move! That’s $200 profit on 100 shares!
Before that, there was another reverse buttcrack break on GameStop (GME).
GME reverse buttcrack on Jan 7.
This is one lopsided, wonky reverse buttcrack. Let’s break it down.
GME rose above 1-minute VWAP to almost $158 at about 8:15 a.m.
Then it dropped below VWAP at 8:30, establishing the middle of our reverse crack at about $151, a little after 8:30 a.m.
GME then broke VWAP again, rising to the high of the day, around $164 at 9:15 a.m.
As the stock came back down, it actually dipped below the middle of the buttcrack, which usually results in follow-through in that direction.
Instead of an immediate follow-through, GME actually pulled off a reverse Fo’ Sho’ Bro (Fakeout Shakeout Breakout!
The 9:30 a.m. candle provided the fakeout. It looked like GME would sell off harshly.
Then the stock briefly rose back above VWAP — that’s the shakeout, spooking any shorts to get out of their position.
Then the stock went BACK to the mid-level our reverse Kardashian bottom AND FOLLOWED THROUGH.
This was the breakout.
Fakeout to the downside on the 9:30 a.m. candle. Shakeout to the upside, briefly rising above VWAP. Then Breakout to the downside, emphatically finishing the Reverse Kardashian Bottom.
From the shakeout at VWAP at $156, GME fell all the way under $139! That’s a 17-point move! Shorting 100 shares, that’s $1700!
I know my VWAPians also see what ELSE happened during that move…
Blue line to orange line: 1-minute Multiday VWAP reversal.
That’s THREE FLIPPED formations from ONE chart.
And if this market starts to turn the way I think it might, you’ll be glad to have these formations in your back pocket.
The BEST way to make sure you’ve got these flipped formations nailed down is to make sure you’re a LIFETIME Warlock’s World member so that YOU can get all the prep in the world (MY world) with EXCLUSIVE earnings sessions!
But for now, make sure to come hang with ME in the BIG ROOM at 1 p.m. ET TODAY to finish your Monday on the right foot!
That’s all for now, VWAPians!
Kenny “The Warlock” Glick
Comments
One response to “This Earnings Season, Remember the Formation Flip”
Leave a Reply
January 10 2022
What is the cost to attend this Saturday’s class if you are not a member of the Warlock’s World and where do you sign up?