The contrarian inflation trade
The Warlock – Kenny Glick – here.
Yesterday’s consumer price index (CPI) numbers showed inflation rising 9.1% from a year ago…so naturally the market got hammered, right?
Here’s yesterday’s chart of my favorite stock, the Invesco QQQ Trust (QQQ):
It’s that HUGE move to the downside.
Thankfully, since we never hold trades overnight, Warlock’s World members had nothing to do with that move.
From there on out, QQQ moved back to the upside.
We even got the full 1-minute multiday VWAP reversal – Blue line to orange line.
After all the hubbub with CPI data and the intraday move to the upside, QQQ finished…down a whopping 0.2%.
Read that again.
Not TWO percent. Zero POINT two percent.
If you were a member of Warlock’s World and traded VWAP, you would have completely avoided that opening move and, most likely, would have traded the Qs to the upside.
Make no mistake – I’m a bear.
I love shorting stocks that are moving to the downside.
I think the market is rigged and that we need a massive correction after the insane bull market of the last 10+ years.
But in Warlock’s World I teach that we don’t trade what we think. We trade what the market gives us.
And yesterday the market gave 8-Baller a different trade, based off of something we just recently talked about…
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It was just yesterday where I talked about how it’s possible to flip headlines in your favor.
And it just so happened that 8-Baller zeroed in on the same stock – because all VWAPians know to revisit recently traded stocks.
In this case, the “same stock” was Twitter (TWTR).
What I love about 8-Baller is that he knows how to utilize news to his advantage. And that through his multiple connections, the news comes directly to him.
And since 8-Baller was filling in for me in my Warlock’s World, he brought an actionable trade to the livestream based on that news.
Notorious short-selling firm Hindenburg Research revealed that they had taken a long position in Twitter (TWTR) stock.
8-Baller had already been keeping an eye on Twitter (TWTR) stock because he guided Warlock’s World members on a trade with it Tuesday.
In real time he drew one of his signature fractal chart patterns, which gave TWO buy points and a sell point. Check out this chart:
But I don’t know if I’d ever be able to accomplish what 8-Baller is able to with his tactical fractal trading.
Click here to learn how 8-Baller draws his fractal chart pattern.
8-Baller isn’t just filling in for me. In fact, you can expect to see a TON more 8-Baller coming your way VERY soon.
That’s all for now, VWAPians!
July 14 2022
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