The ONLY Way to Trade This Market
You know what is NUTS?
That with aaaallll this volatility causing the markets to slosh around like a runaway washing machine, VWAP trades WORK.
My old self would be out here getting SMOKED.
But here I am, leading the Warlock’s World community toward winning VWAP trading opportunities like its NOTHING.
Another day, another BOATLOAD of reasons to stay liquid and loving it in this market.
Don’t get chopped up. Join my Warlock’s World and crush VWAP trades with me EVERY DAY.
And while VWAP knows all, we also have some one of the most useful tools for slightly longer term trades – 8-Ball.
As a “time continuity trader”, 8-Ball offers VWAPians a chance at longer term trades. But we’ll let “Algo8” speak for himself a little bit later…
There’s a reason why we both trust VWAP so much – it’s not wrong.
I can bring my own bias into any trade – like I always say, I’m a bear – but VWAP takes any trade idea and validates it.
The great thing about VWAP is that it helps you know when to get in AND when to get out of a trade.
Take for example my Monday trade on Affirm (AFRM).
AFRM broke VWAP on February 14
AFRM has been on my watchlist since it reported earnings last week and got CRUSHED.
But it’s earnings numbers DON’T MATTER. All that matters is that stocks that have reported earnings generally get EXTRA attention.
They get the “V” in VWAP – VOLUME.
On Monday, AFRM was already above VWAP and right after the market opened, it took a little peek below
But that big green candle at 9:05 a.m. ET pushed AFRM well above VWAP, and I was able to go long, selling into the move and raising my stops along the way.
AFRM lost steam
This is why I sell into the move and raise my stops.
But for me, my ULTIMATE “get out” signal is VWAP. If I was still in AFRM, I would have known to get out one it failed to hold at VWAP.
This is a great example of how I never expect to stay on the same side of one trade all day.
VWAP validated my idea of going long AFRM, then it validated when the trade was OVER.
This helps me define my risk, which in turn helps to remove any fear from the trade.
And THIS is the type of education that YOU could be getting EVERY DAY as a member of Warlock’s World.
Now I’m going to turn it over to everyone’s favorite faceless wonder, 8-Ball.
What’s up, VWAPians!
I am the 8-Ball.
As the Warlock’s right hand man, I host the Daily Decode, where I give Warlock’s World members not only a breakdown of Kenny’s trades for the day, but an insider’s look at the market as a whole.
I am a time continuity trader. Trust me, I still day trade VWAP with the BEST of ’em, but I also take a look at multiple time frames and trends to TAKE ADVANTAGE.
You know what that makes me? The PERFECT complement to the Warlock.
And I’m not just sitting on my hands, waiting for my time to shine in Warlock’s World.
Pay attention. (editor’s note: time in image is PST)
You wanna know why?
I think we’re going to have a MASSIVE squeeze. And then, ultimately, the mother of all crashes.
And stocks like the ARK Innovation ETF (ARKK) move to the upside.
ARKK weekly chart on the right.
We have a slight ascending channel on the weekly chart (on the right).
It’s very difficult to trade intraday based on weekly charts because you can lose but the stock will still be moving to the upside.
But as a time continuity trader, I look at multiple time frames.
The chart on the left is what Warlock trades with – the 1-minute 1-day chart.
But for longer term trades, I look at daily, weekly, MULTIPLE time frame charts.
What I see on this ARKK chart is a strong downward trend BROKEN by a doji star formation.
This is a bullish reversal candlestick pattern that is found in a downward trend. First comes a long red candle, followed by the gravestone doji on the weekly chart that opens below the body of the long red candle, creating a gap.
It is considered a reversal signal.
The trend says to me that people are really nervous. The doji star formation tells me that old business is conducted and it’s time for new business. This is confirmed by the break of the trend to the upside.
When I’m looking at a daily or weekly chart, I’m looking to position myself in the stock for days, maybe weeks maybe months.
People are really nervous, it’s time for ME to step in and buy the blood.
See the volume candle? That means they’ve thrown in the towel. Capitulation trade. Doji star. Reversal to the upside.
Now is the time that I think in the next 3-6 months we can crush it. Opportunity knocks right now.
THIS is what I bring to Warlock’s World.
It’s education, it’s insight, it’s EXPERIENCE.
We do this EVERY DAY in the Daily Decode, only in Warlock’s World.
It’s your job to be there.
Back to you, Warlock.
This is why I called 8-Ball down from the mountaintop. To give mere mortals a chance to learn from his wisdom.
To get the most VWAP wisdom to guide you through this recent market volatility, be sure to join 8-Ball and I in my Warlock’s World.
That’s all for now, VWAPians!
Kenny “The Warlock” Glick
February 15 2022
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