Every day the markets are open, I send you my stock watchlist.

This list includes the stocks that have the highest potential for profit opportunities if you trade alongside the VWAP.

I’m always on the lookout for stocks that are liquid and moving.

And if I pull up a chart, I can immediately tell if a stock is worth watching.

“But Kenny, how do you know only by looking?” I hear you ask.

That’s a great question.

Let’s take for example a stock that wasn’t worth watching this week.

Live Ventures (LIVE) reported earnings this week to little fanfare.

Usually, earnings on a company give us a reason to watch it.

But when I pulled up the chart for LIVE after earnings were released, this is what I saw…

There’s a bunch of red flags here that tell me not to touch this with a ten-foot pole

See how there are gaps between the different candles?

That means that there’s very little volume in the stock.

There’s no fighting between the bidders and the sellers that makes the candles connect.

Another red flag is there’s a crazy amount of time between each candle.

1,000 shares were bought at the open. Then after eight minutes later, around 350 shares were sold nearly 40 cents higher than the last candle.

Finally, the volume traded on the stock should tell you that this isn’t worth your time.

In the pre-market, only 100 shares were traded. And the biggest candle throughout the day was just over 2,000 shares traded.

We want stocks that have over a million shares traded on the day. That volume is key to using the VWAP as an indicator.

Let’s look at a chart that’s worth watching with QQQ.

The QQQ is a market ETF that mimics the top 100 stocks on the NASDAQ.

This is one of those stocks that is always worth watching.

Take a look at the chart below…

This chart is checking off all the boxes for us.

The stock is moving upward. The candles are connected. There are over a million shares traded on it from the previous day. And finally, it’s moving up and down, giving us opportunities to go short and go long on it.

You want to be able to use a chart to set your levels.

Don’t go into a trade with a pre-determined bias.

Just because you liked a company last week, doesn’t mean that it’s worth trading this week.

Take MJ for example, the ETF that mimics cannabis stocks.

This was a hot ETF in February of last year for the long players, trading over 10 million shares on the day.

Now it’s doing less than 500,000.

It may one day come back into popularity, but now isn’t the time to trade it.

Let the markets tell you what’s good to trade out there.


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