How to make money when stocks refuse to stay down

The $AKAM trade couldn't have worked out any better today. 

In fact, it was ten times better than expected.

Here is the secret to what we do: we trade algorithmically, and we trade with the understanding that this market never wants to stay down. If a stock falls, chances are it's going back up. That's our default.

So why did we short $AKAM?

Because our default trade is to short stocks that gap up, taking advantage of that brief, inevitable moment of profit-taking. When does that moment happen? 

Usually right on a VWAP break.

We shorted $AKAM at $144.

Because we understand the algorithmic nature of this market, our targets were the exact prices the stock hit in the pre-market and overnight sessions. It hit our first target, and we took profits. We didn't cover the whole position, though, because we knew it could go lower.

And it did. 

It went straight down to a level that was hit six different times last night. I always say: if an area was important the night before, it will be important the next day because the market is rigged.

We covered the rest exactly there. The total move? $144 down to $132.85. A massive 10+ point trade.

But the trade wasn't over.

If you embrace the horror - or the reality - that nothing stays down in this market, you knew what was coming next. 

The stock consolidated at VWAP, gave us a late-day VWAP break, and we went long at $143.

It ripped up 6 more points, right back to where it started the morning.

Not only did you make close to 10 points on the short side, you made another 6 points on the long side. This is what happens when you understand that you should never stay short and expect to make money once the initial move is over. This is the market we are in, and it's likely staying this way for the next 3 to 5 years.

I hope you crushed the $AKAM trade. 

A trade like that easily pays for your room subscription, your mortgage, or even a car - especially if you had some size or parlayed it into options. It was a $20,000 day disguised in one tiny ticker.

And right now, you can get access to setups just like this at a sharp discount. We are running a special sale on Hit the Bid, where you can get your first 30 days or an annual membership at a massive discount.

Get full details and claim your discount here.

I'll see you in the Room.

Kenny Glick | Founder, Hit The Bid

P.S. $AKAM paid us 10 points on the way down, and 6 points on the way up. We trade the algorithms, not the emotion. Stop fighting the market and start trading the lines. Join us at a discount today.