Happy Friday, VWAPians!
Bless me, VWAP, for I have sinned.
During yesterday’s Warlock’s World live stream, I strayed from the path of righteousness.
I was attempting to chase early gains on some crazy names like Sunshine Biopharma (SBFM) and Momentus (MNTS).
And I missed the trade of the day (so far) on Invesco QQQ Trust (QQQ).
Forgive me, VWAP, for I have forsaken thee
The Qs have probably been my favorite stock to trade, ever.
And I missed it because I was dilly dallying around with some stinky biotechs.
The rest of the day was mostly a CHOP FEST.
But I stuck with the stocks that I had on my watchlist and exercised on the VWAP virtues that I constantly preach in Warlock’s World – patience.
One of the stocks that led me astray from the Qs was SBFM and it was was in play ALL DAY.
SBFM broke VWAP to the upside early
SBFM offered a winning trade from an initial VWAP break at 9:37 a.m. ET.
SBFM broke out shortly thereafter
SBFM offered another opportunity after breaking VWAP again at 9:54 a.m. ET, before completing a textbook Kardashian bottom breakout.
But the coup de grace for SBFM was later in the day.
SBFM’s final crescendo was a masterpiece
I know that this chart is difficult to see.
The key takeaway from this chart is that SBFM never wanted to die.
If you were in the stock based on the principles of VWAP trading, it never gave a reason to exit.
And if you stuck to the virtues of VWAP brought to you in Warlock’s World, your patience was divine.
Because the stock rocketed after hours.
I typically don’t trade after hours because of a lack of liquidity.
But even if you caught SBFM on the late squeeze during the regular trading session, it could have been a successful trade.
This is part of what I’ve been preaching constantly in Warlock’s World of late.
Stick with ONE NAME. It can often offer multiple trade opportunities throughout the day.
For my newer VWAPians, I recommend the QQQ. It’s highly liquid, and helps in understanding how stocks move and the setups that they make.
Get your feet wet with the most proven name, then branch out further into the kingdom of VWAP.
And remember, just like this example from SBFM, patience truly is a virtue.
The only place to truly convert to the church of VWAP is Warlock’s World.
Stay nimble my friends.
Kenny “The Warlock” Glick
April 08 2022