Hey there, VWAPians!
The Warlock, Kenny Glick, here…
What a first day back we’ve had.
During my Warlock’s World live stream, I covered trades in Affirm (AFRM) and a few others, which I’ll get into below.
First I’d like to relate a little story from when I was in Las Vegas this weekend…
I hit the roulette table and people were going NUTS.
It must have hit black TEN times in a row.
And aaaaalllll these people were betting on red, trying to time the reversal.
Here’s me popping in with my VWAP mentality that “the trend is your friend.”
It must have been black 37 times in a row and people were getting BLOWN UP.
But Kenny, how does this relate to trading VWAP?
Don’t be the guy betting on red thinking you’re outsmarting everybody.
The trend is your friend.
And the ONE THING telling you the trend in this market?
Trading with the trend helps get rid of your FEAR.
WHO CARES where a stock has been?
Where is it GOING?
In Warlock’s World, we join into the move (or trend).
We define our risk, join into the move, and we have no fear.
Today, we joined in on the trend with AFRM.
AFRM broke the prior day’s high
The first thing that made going long AFRM interesting was that it broke VWAP to the upside.
The first upside VWAP break came right when the market opened just under $40 a share. AFRM topped out around $42 a share before retracing to VWAP.
After shuffling around VWAP, AFRM broke VWAP to the upside again, at just under $41 per share.
This VWAP break led to a new high for the day of $43.16.
Both times when AFRM broke VWAP to the upside, it also broke the prior day’s high.
When a stock breaks the prior day’s high, it usually is going to have some follow through to the upside.
The high for AFRM today so far has been $44.30.
From the initial VWAP break at just under $40 a share to the new high of $44, that’s a $3 per share profit.
On 1,000 shares, that’s $3,000 in profit.
On 100 shares, that’s $300 in profit.
You might be saying but Kenny, $300 in profit isn’t that much.
There’s 253 trading days per year. $300 a day over that course of time is over $75,000.
Learning how to trade VWAP this way takes time and discipline.
And the only place to learn how to capture these kinds of moves using VWAP is Warlock’s World.
Remember, the trend is your friend.
And when a stock breaks VWAP and the prior day’s high…chances are it’s going to go higher.
That’s all for now, VWAPians!
I’ll see YOU in Warlock’s World tomorrow!
Kenny “The Warlock” Glick
March 21 2022