The VWAP shuffle, jiggle, and payout
There’s more canvas to cover today.
If you came into the room this morning, you know the overnight session was amazing. The dip was bought again because this market does not like to go down. I like taking easy money trades, and the easy money was the overnight.
So I came in and said: I am not buying into this rally because the easy money is over. Please give me a reason to short this market.
We stalked it. We waited. And then the market gave us a chance right at the open.
The first candle squeezed the shorts out. The second candle didn't break the top. I decided to go short the $NQ at 7:42. I told the room: "This is only gonna last maybe 6 minutes because that's all we ever get."
It lasted exactly 3 minutes.
But in that trade, from 7:42 down to 7:40.5...that's 1.5 points. On 300 shares, that's $400 right into the pocket.
If you weren't quick enough to catch that, you probably missed my sentence entirely. You were probably busy telling yourself the market never goes down.
But patience is how you make money. Stalking your prey is how you make money.
The $QQQ came back to VWAP and bounced. I said, "If this bounce rolls, that's the finger of God."
We saw the VWAP shuffle. The VWAP jiggle. The inability to get over the last knuckle. VWAP confirmation triggered.
But we didn't short the stock. I warned my option players not to trade options at the open because of the chop, but now? Now they were fairly priced.
We went right at the money with the $743 puts.
I told everybody: "If it gets over $2, buy it. Don't be scared to pay $2.10. Buy it. It's at $2.16, buy it."
Next thing you know, we went from $2.16 to almost $3.00 immediately.
We sold some. We held some. We took it from $2.00 up to $3.50, then $4.00, then $5.00.
By $5 bucks, we were pretty much done. 100% on your money. Imagine buying a $20 stock and having it rip to $30 in 3 minutes. Wouldn't you sell? Of course.
Sure, we left some money on the table, but we made that money back trading the SpaceX short. We addressed the "Fat Finger Freddie" trade. The print showed $159.93 while the stock was at $176. That was the tell. The VWAP broke, tested, rolled over at $174, and the stock fell 10 points.
On 200 shares, that's a quick $2,000. (On 2,000 shares, that's $20,000).
And then there's Nokia.
Nokia has been a dud for swing traders. If you bought it with me as a swing trade on May 5th around $14... you've got squat. It went up, it went down, and today, June 22nd, you're right back where you started.
But if you bought it this morning on the 1-minute multi-day VWAP reversal? You made a payday. We traded it back and forth all day. In one day, trading Nokia around the 1-minute chart, we made more money than holding it for a month and a half.
This is why I don't swing. I don't need to own stocks. I'd rather be a trader than an investor forever.
Whether it's Nokia, the $QQQ, SpaceX, or the Bull, we are killing it on a daily basis.
If you want a video of me breaking down what happened today, click below to watch it:
If you’re already inside the room, I’ll see you tomorrow.
If you’re not in here yet, here’s the link to join us.
I'll see you in the Room.
Kenny Glick | Founder, Hit The Bid
P.S. $400 in 3 minutes on the open. 100% on $QQQ puts. A 10-point drop on the SpaceX short. And milking Nokia all day long. I'd rather be a trader than an investor any day of the week. Join us here inside the room.
