The Warlock – Kenny Glick – here.
I’m fed up.
It seems like every time I check my email, there’s some new BS from another financial “guru” promising unrealistic returns from some magical trading system.
It’s truly unsettling.
So here’s what we’re going to do.
Earnings season has just kicked off and is about to pick up steam.
I just got back from vacation and I don’t know if I’ve ever felt more refreshed and ready to hunt for earnings reversals with my Warlock’s World members.
We’re going to start from scratch.
I think trading VWAP around earnings reversals can beat anyone.
Any trader. Any system. Any scanner.
And to prove it, we’re going to start from ZERO.
I’ve been keeping a mental tally of successful earnings reversals in Warlock’s World since the start of the year.
I think there was only one that never fully worked out.
That’s not to say that I haven’t taken any losses.
Because I have, Blanche.
But in Warlock’s World, I teach my community how to hunt VWAP trades using minimal risk for potentially massive gains.
We take our losses. We get stopped out. But we keep hunting.
And over time, these calculated losses get SWALLOWED by profits.
You may be thinking…
But Kenny, you’re really going to start your earnings reversal counter at zero?!?
We’ll call it zero from yesterday – before I led my live trading room to successful earnings reversal trades on Bank of America (BAC) and Goldman Sachs (GS).
EARNINGS REVERSAL COUNTER
2 for 2
The great thing about trading VWAP is that it transcends the market.
We don’t care about how much the stock has risen or fallen on the day. We use VWAP as our compass…
New to VWAP?
Start your journey down the path of trading salvation with a headfirst dive into the VWAP bible.
Be like water
I’ve heard all the speculation and predictions about how this earnings season could go.
And lemme tell ya – anyone telling you that they know what’s going to happen is full of it.
There simply is no crystal ball that can tell you what will happen to a stock’s price after the company reports earnings.
All there is PRICE ACTION.
Which for me, when paired with VWAP, presents profitable opportunities.
The two stocks kick starting my earnings reversal counter reset are Goldman Sachs (GS)…
And Bank of America (BAC).
Just by taking a quick glance at these charts, what similarities do you see?
Current price action is below VWAP.
When this is the case, I’m usually leaning to the short side.
Especially since both stocks had reported earnings. Both stocks were gapped UP. Then both stocks broke VWAP to the downside on strong price action.
But Kenny, how can you think to be short? Isn’t the short already over?
Because VWAP alone isn’t the end all and be all factor in my trades.
Sure, VWAP might be the biggest factor in my trades.
But just because a stock breaks VWAP one way or the other doesn’t mean that you should buy it or short it.
It also depends on significant price levels.
What drawing the lines on my chart helps tell me is price areas of support and resistance away from VWAP.
So if a stock is already below VWAP, like BAC and GS here, I can consider putting on a short so long as the stock doesn’t break back above the significant levels that I’ve determined based on price action.
And if I do put a short on and the stock breaks my levels, I exit the trade with a minimal, defined loss.
Trading this way removes the emotion associated with trading. My risk is defined. I can remain calm.
And if I get stopped out – which happens – I don’t just give up on the trade.
I continue to draw my price levels and consider whether to go short or long or do nothing.
Trading is this…fluid thing. The sands are always shifting and trades are constantly being redefined.
If there was ONE THING…ONE TRADE to do…EVERYONE would be doing that and the market wouldn’t be the market.
It’s this constant ebb and flow of money coming in and out and price action changing.
That’s why in Warlock’s World I teach how to be nimble.
Like Bruce Lee said: “Be like water.”
Because price action can change direction on a dime, and I don’t want anyone to be left holding the bag.
I’m not saying every trader needs to know how to trade every kind of spread under the sun, and sell puts, and be up to speed on the latest economic data…
Far from it.
What I am saying is that even though I have the most powerful compass, the most powerful tool – VWAP – at my disposal, I need to be malleable to the situation.
Because trying to force a trading “system” or “strategy” or whatever isn’t always going to work the same way every time.
That’s why I feel confident laying down the gauntlet against any so-called “guru” out there.
I reset my earnings reversal counter. Two for two.
If you want to be trading alongside me when it goes 19 for 20 or 48 for 50…
Or if you want to learn how to become a malleable trader that can take advantage of any market…
That’s all for now, VWAPians!
Kenny “The Warlock” Glick
July 19 2022