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.
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