Today, we made 10 points on Home Depot...easily
I want to let you know we've started a new streak. The streak is now at 1,472 wins in a row.
You should be amazed that a trade has worked that many times. But why don't we begin a new streak together, starting Monday?
Our earnings reversal for the day was Baidu, and we are 1 for 1. So now the streak is technically at 1,473.
So, maybe you should take the next one.
But it was the Home Depot trade today that really exemplifies everything you need to know about our setup, and everything you need to know about this market environment.
The market refuses to go down. That's all you need to know.
When you saw Home Depot gapping up on earnings this morning, what was your first instinct? Look for a blue line break, an orange line break, and short it. We short stocks that are gapped up and breaking VWAP.
Our target was the reaction low. If you joined late around $299, that trade got you down to $295 for 4 points. On 200 shares, that's $800. If you held a little longer, it went to $292.50 before the market opened.
But remember: shorting is short-lived, and you will die if you stay short. You have to cover.
Then you wait for the inevitable: the Fo-Sho-Bro, fake-them-out, shake-them-out VWAP break to the upside. Your new entry on the long side was $293, with targets back at $295 and the orange line at $298.
You cover your short, join the winning side, make 4 or 5 points on the way down, and make another 4 or 5 points on the way back up. 10 points, very easily, all by 10:30 in the morning. On a couple hundred shares, that's $2,000.
Then we had Bilibili.
A gapped-up stock, breaking blue lines and orange lines, rolling over. The short entry was $19.50, taking it down to $18.50. On 1,000 shares, that's $1,000.
Then the market opened. Bam. You become a VWAP buyer at $18.90. Next thing you know, it hits $19.25, then it's programmed to hit $20, where we sold. About a buck on the way down, a buck on the way up - another $2,000.
Welcome to gap reversion, earnings VWAP trading.
And if you got Glick's Picks this morning, you know I liked buying $SOXS. We made money in the pre-market, got out before the open when it tanked, and then bought back in at $10.09 as it rode to $11.00. Another $1,000.
This is the greatest trading environment in the history of mankind.
You don't need the market to always go up or always go down. You just need this market. This trade transcends all market environments, time, and space.
Kenny Glick | Founder, Hit The Bid
P.S. The streak is at 1,473. You can either read about trade 1,474 or you can be in the room and profit from it. Your choice.
