Up to 1,513 times in a row 🍾
Hell yeah. We kept the streak alive, ladies and gentlemen.
We kept the streak alive.
We could highlight the Cerebras trade. It was fantastic.
We could talk about Oracle. It was awesome.
We could talk about BlackBerry and Nokia - pretty damn good.
But let's talk about the stock that, if you didn't trade it today, you need to get up out of your chair right now, look at yourself in the mirror, and ask: Why?
If you've been waiting for that trade that works every time, well, it showed up on Levi's.
And hopefully, you're saying to yourself, "I know, and I loved it."
Or you're saying to yourself, "God damn it, I missed it."
So, what are we up to now?
We're up to 1,513 trades in a row that have provided a winning trade on this setup.
Let's elaborate. Levi's gapped down. It got smoked at the beginning of the day. Then, it broke over the blue line. That's the fake out, the shakeout.
Here's my favorite part: I wasn't even in on this trade right away.
I missed the wonderful entry at $23.20. You could have bought the opening range break at $23.70, or the multi-day VWAP break at $23.95. I finally bought the stock when it broke $24.00.
Understanding the one-minute multi-day VWAP reversal is crucial. The stock still had 36 cents to go just to get to break-even from yesterday's close. Remember, the reversal part is when the stock breaks the closing price from the prior day.
When I say this trade works every single time: if you have a stock reporting earnings that gaps down, does the Fo-Sho-Bro, breaks VWAP and the multi-day VWAP, and then goes green...you are getting paid. And the streak continues.
You're in a stock at $24.00, and it goes to $25.00. That's a $1,000 trade on a thousand shares, or at least $500 to $600 if you scale out.
But then look at what it did. It rolled over and went down. If you sold some at $24.75, that became our stop on the way down, and that's where we sold out of it.
Not only did we win on the upside, but if you chose to, you could have shorted it when it presented itself again at $23.65 on the VWAP break through the multi-day. It went right back to the original price where this whole party started.
Or, if you shorted the rejection on the way down at $24.40, you made another 70 cents.
You made 70 cents or a dollar on the way up, and another 50 or 70 cents on the way down, on a stock that relatively went nowhere all day. But because we trade algorithmically around volume-weighted average price, we kick ass on both sides.
I made a video summarizing exactly what happened today. Make sure you watch it here:
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 inside.
Have a great day.
Kenny Glick | Founder, Hit The Bid
P.S. In case you missed it: 1,513 winning trades in a row on this earnings reversal setup. We played Levi's from $24.00 to $25.00, then shorted the rollover. We trade both sides, and we don't guess. If you want to see exactly how we did it today, make sure to watch the recap video.
