Hey there, VWAPians!
Wow, I can’t believe it’s already Wednesday.
Mostly because yesterday was NO JOKE one the GREATEST trading days of the year so far.
Seriously, if you’re not already a member of my Warlock’s World, you are MISSING OUT.
Because I delivered MULTIPLE slam dunk trades yesterday that could have paid for your entire lifetime Warlock’s Worldsubscription.
There’s TWO in particular that really illustrated my Warlock powers, and that’s all I want to talk about…
But first, a little housekeeping.
My man SOLIDJELLO is BACK in Warlock’s Worldtoday at noon ET for another session that he’s dubbed “Navigating the Chop!”
Solid is a master at helping traders conquer the midday morass that can hop traders up QUICK. So make sure you’re in there like swimwear for this amazing session.
And don’t worry, we didn’t give 8-Baller the day off. In fact, he’ll be joining ME in the BIG ROOM today at 1p.m. ET!
That’s ALL the MAJOR VWAP players back to back!
Speaking of major players, I’m sure you all know and love Money Morning LIVE’s Master of Momentum, Garrett Baldwin.
With all of the recent market mayhem, there’s NO ON better to turn to than Garrett.
Today at 8 p.m. ET, Garrett will be breaking down how he’ll highlight three HUGE trends that can let ANYONE take advantage of runaway inflation.
These trends are expected to create DOZENS of trading opportunities in the coming months – and Garrett is targeting under-the-radar plays with the potential to 10X in the next 30-60 days!
That could make your trading YEAR, Blanche!
So make sure you lock in your seat to Garrett Baldwin’s World’s Biggest Trade at ZERO cost to you.
Now about those two VWAP trades from yesterday that I wanted to talk about…
On Tuesday, there was a stock on it’s way to ZERO that offered an opportunity for a winning VWAP trade.
Selectquote (SQLT) reported earnings before the market opened and the stock was absolutely PUNISHED, losing over 50%.
I’m sure just a pit stop on it’s way to ZERO.
The stock was getting HAMMERED in premarket. I don’t care. All I cared about was the possibility of a winning trade.
SLQT got CRUSHED in premarket trading.
I mean, LOOK at this thing. UGLY.
But even right there on that chart, you can see that the stock bounced off a low of $2.52. Almost an EXACT half number.
As SLQT came off this low, I figured I could make some hay if the stock could break VWAP.
So I bought it. Some beaten down, GARBAGE company on its way to zero. I bought it.
I don’t care about the name, I don’t care what they do, I don’t care about what was in their earnings report to cause them to tank this bad.
I was just looking for a potential 1-minute multiday VWAP reversal on a stock that reported earnings.
After taking one look at the chart, I figured SLQT could at least get back to $3 per share.
But, after making some money on the stock, SLQT stopped me out at $2.71. That’s fine, getting stopped out happens.
But we’ll come BACK to SLQT.
Another stock that reported earnings, Sysco (SYY) came across my scanner.
SYY was on the move after reporting earnings.
Looking at this stock, my first thought was that I missed it.
VWAP break. Premarket high break. Multiple missed opportunities.
But usually when you have a stock coming off an earnings report going through the one minute VWAP and through the multiday VWAP, you can expect some follow through to the upside.
As I was talking about placing my stops because of a potential candle of death, check out what happened.
Market algorithms at work.
This was something AMAZING to watch.
This was the algorithms that run the stock market at work, and we happened to catch it in Warlock’s World in REAL TIME.
Blue line to orange line. Get to the orange line and the algorithm say “Time to sell” and the stock plunges back to the blue line.
Blue to orange, orange to blue.
The market is RIGGED.
I wasn’t even in the stock yet, as I was waiting for a multiday break for potential follow through to the upside.
When SYY broke the multiday VWAP just like I was looking for, it was my time to enter a trade.
SYY followed through the mulitday VWAP.
SYY pushed through the mutliday and KEPT GOING.
The stock never really gave a reason to exit the trade!
From the multiday VWAP break of $78.79, SYY topped out at $81.62. On 1,000 shares, that’s a $2,800 gain!
Then one of my amazing VWAPians in Warlock’s World reminded me to check back on SLQT…
SLQT broke even higher.
Just LOOK at this beautiful Kardashian bottom!
From this spot, SLQT kept moving to the upside.
The stock went right to my initial target of $3, then KEPT GOING, aaaaaaallll the way to the multiday VWAP.
Blue line to orange line.
Blue line to orange line.
From the Kardashian bottom VWAP break at $2.71 to the multiday VWAP of $3.48. That’s a $0.77 move on a $2 stock.
OR, on 1,000 shares, that’s $770. On 10,000 shares, that’s $7700!
That’s a winning trade no matter your account size.
Between SLQT and SYY, that’s an entire Warlock’s World subscription paid for. IN ONE DAY.
If you don’t know me, GET TO KNOW ME!
That’s all for now, VWAPians!
Kenny “The Warlock” Glick
February 09 2022