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Good afternoon, evening, and morning to all my VWAPians out there.
This morning exciting day for semiconductors, as Nvidia (NVDA) popped almost 100 points today.
So, if you saw this news, you really only had one job once the market opened...
And that was to short NVDA.
If NVDA was expensive, then you could have targeted SOXL for a short play or SOXS for a buying opportunity.
They are cheap alternatives to buying or shorting the semiconductor sector.
And they offer traders with smaller accounts a chance to get in on trades once thought impossible.
A rising tide lifts all boats, and you should have been looking to play the fade.
Of course, though, you wouldn't have just started shorting NVDA right away.
You needed to WAIT until the market confirmed the fade, and then you could have gotten in.
But like NVDA was saying in the pre-market, there was no way I was going to be shorting this thing.
The stock was constantly staying above VWAP and continued a bullish trend as we can see in the chart below...
So, I kept an eye on NVDA into the opening bell. But if it kept above VWAP and never broke, there was no way I was buying it.
I don't buy stocks that are gapped up as much as NVDA did.
So it's a waiting game. And while I wait, there are plenty of other stocks to target as I've pointed out on my watchlist.
While I have my own scanners, ThinkOrSwim and plenty of other platforms out there offer you the ability to pull up multiple screens for your charts so you can track two or three names at once.
So, with all that said, let's look and see what happened just before the market opened...
If you had a plan, and looked to play the fade, your short opportunity came at the pre-market at $392.
But even if you waited a little bit until market open you could have shorted at the open at $385.
The stock kept above the VWAP for the entirety of last night and this morning, then FINALLY broke down under it right before market open.
Shorting 100 shares of that stock into a $20 move is $2000 in your pocket.
For a lot of people out there, that's more than a week's pay. And you don't have to do anything for the rest of the day.
And in the Warlock's World we were able to target this trade and many more from the Watchlist I posted this morning.
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The post A live look into how you could have played NVDA this morning appeared first on This Is VWAP.
About the Author
When you hear "professional stock trader," you probably picture the stuffy Wall Street cliche...
A well-groomed, blue-blooded so-and-so wearing a bespoke suit and a crisp collar, sporting a Rolex and carrying a briefcase worth more than your car...
Someone cold, humorless, and unapproachable -- a guy you wouldn't wanna be trapped with on an elevator, let alone have drinks with on a Saturday night...
In other words, you think of the OPPOSITE of Kenny Glick.
For those who've never had the pleasure of seeing Kenny in action, live-trading stocks based on their Volume-Weighted Average Price (otherwise known as VWAP, the lifeblood of his methodology), the juxtaposition may be discombobulating at first...
I mean, here you are, watching what feels like an intimate one-man comedy show, and yet -- you're learning how to make money trading a relatively simple indicator?!?
Kenny Glick is one of the few -- if not the ONLY -- trading tutors in the game who can simultaneously drop a stream of KNOWLEDGE BOMBS while making his students belly-laugh each and every day.
In fact, many folks watching Kenny trade for the first time comment, "You should be a stand-up comedian!"
But what they don't know is this: Stand-up, ironically, was how Kenny was introduced to trading in the first place.
From the Stage to the Street
See, Glick didn't seek out a successful career in trading -- he actually went to school to be an actor and comedian.
In fact, regular viewers of Kenny's LIVE trading sessions are no stranger to his many impersonations, including Donald Trump and Christopher Walken, so it should come as no surprise he once worked behind the scenes at "Saturday Night Live."
In addition, Glick often "interacts" with a whole host of characters in his head, including: The Man in the Van, who enjoys heckling Kenny in the most Brooklyn way possible; The Zen Master, who leads daily breathing exercises ("inhale the VWAP, exhale the negativity!"); and Blanche, a reference to the Bette Davis/Joan Crawford classic "Whatever Happened to Baby Jane?"
Put it this way -- if a blind person listened to Kenny Glick trade, they might very well think they accidentally tuned into an improv class or The Howard Stern Show.
As far as finding his way to trading, legend has it that after doing a stand-up show in the '90s, Kenny was approached by a powerful broker who happened to be in the audience.
Always up for an adventure, Glick took him up on his offer to corral that charisma and comedic chops to help pitch stocks...
Chasing That Baseball Card High
While learning the trading ropes, Kenny was overcome with a nostalgic feeling he didn't even realize he missed -- the high he felt trading baseball cards as a kid.
In retrospect, he now sees he was "innately a trader at 13."
As he would with stocks later down the road, the young Glick would acquire the cards of players he thought would do well... then turn around and sell them for more than he paid.
His dad, a math teacher, would often drop Kenny & Co. off at hotels for various baseball-card-related events, and one Sunday they made a cool $1,200 in a single afternoon.
"Teenage kids with that much cash? We were kings of the world!" he said. "After that? FUGGEDABOUDIT -- I was hooked."
Against this backdrop, it doesn't take a rocket scientist to see how Glick fell in love with trading stocks and options...
But as with most heroes, his journey to VWAP dominance was filled with a few detours -- and even danger.
Living on the Edge
It didn't take long for Kenny to realize many Wall Street (and off-off-Wall Street) firms were mired in greed and corruption on a massive scale, particularly in the penny-stock arena.
Over the first few years of his trading career, he jumped around from company to company, startup to startup, seeking an employer with more integrity -- and he kept coming up short.
Once, he was even threatened to get BEAT UP if he didn't strong-arm a client into a shady deal (Kenny quit with a quickness).
Glick obviously wound up finding his groove as a day trader, and because his life story could be titled "The Forrest Gump of Brooklyn" (he's everywhere, man!), he even appeared on several big-network TV shows defending day trading in the late '90s.
After an in-too-deep trader shot and killed nine people at two day-trading firms in Atlanta, the media was on a mission to "cancel" the entire practice, as the kids say.
"The press was looking for the next Wall Street psychopath, and I guess I fit the bill, so they interviewed me," he said.
Of course, it was actually Glick's charisma both on and off camera that really made him an excellent interviewee, and he made the media rounds defending traders who don't hold stocks overnight.
Kenny and his parents were interviewed by CBS News in 1999He argued that many of the haters likening day traders to degenerate gamblers likely had long-term stock positions of their own...
And the only difference between them and the day trader FIENDS was the time period -- minute-to-minute vs. month-to-month charts.
Right Side of VWAP, Right Side of the Trade, Right Side of LIFE
Kenny, like most traders, blew up his trading account a few times early on attempting to find his groove.
He went through the whole indicator rigamarole, trying to play the usual suspects like Fibonacci retracements, simple moving averages, various relative strength yardsticks, etc., but it all became too much.
"It was like abstract art, some of these charts, with the 600 lines and graphs and zig-zags," he said. "I was like, 'Can you dumb it down a little for me?'"
My favorite PicassoBut then, Kenny found the Holy Grail of Trading: VWAP.
As a big short seller (someone who makes bearish trades), his favorite trade was the fade -- he liked when stocks would gap up on earnings, and he could make money as they dropped back to earth.
And when he was introduced to VWAP by the Emperor and Overlord of VWAP -- Zack Hurwitz and Brian Shannon, respectively -- he realized he struck gold...
Kenny now had a way to give himself a head-start on his trades -- including the earnings fade -- and the simplicity of VWAP was nothing short of a revelation.
Even better? It was REPEATABLE.
In fact, Glick often likens VWAP trading to "Groundhog Day" -- the Bill Murray comedy where every day is the same.
The symbol letters might change, and the numbers change, but the VWAP setup is always the same.
It was a game-changer when he realized the power of the VWAP... which allows Kenny to make money on both sides of the trade, as a bull and a bear.
But while he may feel each trading session is the same, one certainly doesn't get that feeling watching Glick teach others how to capitalize on "the only trade you'll ever need" (as the lyrics to his original VWAP song go)...
His wit, patented Knowledge Bombs, and growing repertoire of crazy characters make each Warlock's War Room session feel anything but stale.
Plus, when everyday is "the greatest trading day ever," there's definitely nothing wrong with a little repetition...
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