Monday was the trading day that I had been waiting 10 years for.
And I missed it.
Well, most of it.
So even though Monday was an amazing day for VWAP trades, I was in a bit of a mood, as members of my Warlock’s World can attest.
I had been waiting for this kind of market move since 2013 – the last time I blew my account up.
And when it finally came, I left a lot of money on the table.
It made me frustrated, and I didn’t even try to hide it.
I left a LOT of money on the table on Monday.
The real question is – why was this the day I had been waiting SO long for?
I’ll answer that question in a second, but first I wanted to remind you of an incredibly important event coming up this week.
As you know, the market has been a bit rocky lately.
For us VWAPians, this has been an amazing trading environment, but for your standar buy and holders, this market has got to feel like going 10 rounds with Mike Tyson in the 90s.
And coming up on Wednesday, the Federal Reserve will release their latest statements about the market and revisions to their policy.
Any time the Fed does ANYTHING, it brings a TON of volatility to the market.
That’s why my brother 8-Baller and I are hosting a special session on Wednesday, January 26th at 2 p.m. ET in the BIG ROOM to help ALL the VWAPians navigate the extra chop!
This session is EXTRA important considering the recent market selloff, so it could be EXTRA choppy!
So it will be – The Warlock – the nimble, day trading, VWAP GOD, and Bobby “8-Baller” Eight – the macro master, with his ear-to-the-street insights.
To make sure YOU don’t get chopped up, mark your calendar and join 8-Baller and I on Wednesday, January 26th at 2 p.m. ET in the BIG ROOM!
Now, for why Monday was the day I had been waiting so long for…
On Friday, I did something I never do – I held onto ProShares Ultra VIX ETF (UVXY) shares over the weekend.
The bear market is finally here, and UVXY was telling me that there was more selling coming up…
In fact on Friday, I was in the Invesco QQQ Trust (QQQ) $352 puts when they were trading for $1.50 per contract, or $150 each.
I only traded one of these contracts myself.
Fast forward to Monday, and QQQ falls off a cliff!
The $352 puts traded as high as $17, or $1700 per contract on Monday.
And I MISSED IT, Blanche!
By my last estimation, I left over $2 million on the table between Friday and Monday.
THINK ABOUT THAT. $2 million!
Now, I’m not crying about it, but I was a little miffed.
We had some winning trades in my Warlock’s World , but I could tell that the missed opportunity had put me off my game.
And while I wanted to try to make up for the missed profit, I’m a disciplined enough VWAPian to know that revenge trading has to be done a certain way.
It’s like I talked about last week. I had to conquer my greatest trading foe – myself.
Some members of my Warlock’s World were wondering why I appeared to be breaking some of my VWAP trading rules by going long QQQ while they were still below VWAP.
I’ve taken a lot of time to carefully cultivate my VWAP trading rules, but it has to be taken into advisement when things change.
The market is fluid, the market is liquid, and traders need to be able to shift gears, to change.
That doesn’t mean that we throw all the rules out the window – quite the opposite, really.
We can’t know that we’re breaking the rules without knowing the rules in the first place.
We have to master the rules to be able to know when and where and how long we can break these rules.
And like G.I. Joe used to always say – Knowing is half the battle.
The BEST way to know ALL the rules is more time with ME.
The BEST way to get the MOST time with ME possible is to become a member of my Warlock’s World community.
That’s all for now, VWAPians!
8-Baller and I will see YOU Wednesday, January 26th at 2 p.m. ET RIGHT HERE!
Kenny “The Warlock” Glick
January 25 2022