The Warlock – Kenny Glick – here.
Right now is the most important time to be trading with me LIVE in Warlock’s World every day.
Not only have earnings reversals remained the single best trading strategy of the entire year…
But my VWAP trading strategy has transcended the entire market.
Recently, I touched on why I don’t trade “big” names around earnings.
And I wanted to touch on that a little bit more.
Because not only could I keep you out of “bad” trades, but my Warlock’s World will help you find the single best stocks to trade every day.
Which is especially important right now when the market appears on the precipice of falling into an abyss.
VWAPians watching the market fall
The CNBCs and Fox Businesses of the world are hesitant to even utter the words “bear market.”
But let’s not kid ourselves.
The Invesco QQQ Trust (QQQ) is 26% off all time highs.
The S&P 500 ETF (SPY) is 16% off all time highs.
It’s been downright ugly.
But this whole time, just like I’ve been telling anyone who would listen, my Warlock’s World members and I have been laughing and MAKING MONEY.
And it’s all thanks to VWAP.
How often can a trader say that they’ve had the best year of their career when the market is tanking?
It depends on if that trader has unlocked the sheer power that is VWAP.
And the key, the foundation for all of my recent profitability has been built on the back of one trade – earnings reversals.
But the big, sexy names aren’t always the best stocks to target for these kinds of trades…
Recently, I talked about how “big” names – your Walmart (WMT) or Home Depot (HD) type stocks – are not the type of stocks that I’d target for earnings reversals.
It’s not just because of their higher share price.
In Warlock’s World, our wheelhouse is finding stocks that trade from $2 to $50 per share.
That makes it easier to accumulate a larger position.
But there’s another aspect of these “big” names that is key…
That’s right, the “V” in VWAP.
While earnings reports tend to bring elevated trading volumes to nearly every stock…
The big names like Target (TGT) or Cisco (CSCO), which report this week, generally have relatively light trading volumes.
That makes these stocks less prone to large, outsized moves.
The trick of the VWAP trade is to find stocks with significantly increased trading volumes.
As VWAPians, this is our edge.
Elevated trading volumes unlocks EVERYTHING that I teach to Warlock’s World traders.
From chart patterns to significant price levels, it all is born out of high volume.
If you see a chart where the candles look like this…
An example of a chart with relatively low volume
The stock has relatively low volume, which translates into limited price action.
Also, if you see a chart that looks like this…
From low volume to nearly no volume
This is an example of a stock that “trades by appointment” – meaning there is next to no volume.
While stocks like this can provide positive returns, generally these kinds of stocks are illiquid, which means the bid/ask spread is wider, and it might be harder to get your orders filled at the prices you want.
Comparatively, take a look at THIS chart…
A an example of a high volume stock
The chart above is a look at the price action in my beloved QQQ.
Not only is there large TRADEABLE moves on either side of VWAP, but since QQ Q has such high volume and liquidity, it’s one of the best stocks for nimble VWAP trades.
As VWAPians, elevated trading volumes ARE OUR EDGE in this market.
To make sure that you’re hunting the highest quality, highest volume stocks in this market every day, you must be a member of Warlock’s World.
Because while Home Depot (HD) may have a ton of stores and are a “good” company, I can almost guarantee that the best trading stock the day HD reports earnings is going to be some crappy biotech or a stock you’ve never heard of that’s seeing absurdly high trading volumes.
That’s all for now, VWAPians!
Kenny “The Warlock” Glick
Tickets to the virtual stream will also unlock access to our special trading room that we are hosting for those two days.Don’t miss out! Grab your tickets here.
May 17 2022