6 minutes. $400. Have a nice day.
It is becoming impossible to appreciate how awesome this market is.
Let's get right to it.
The first trade of the morning was pre-market. I don't trade pre-market too much because I know some people are scared of it. But when the classic trade shows up—a gapped-up stock on an earnings report breaking VWAP and multiple time-frame VWAP—that's your trade.
We shorted Morgan Stanley at $228.50. The first area of concern was where it came from, $226.50.
That took 39 seconds to make 2 points. If you had 200 shares, there's $400. Have a nice day.
Even if you scaled out, covering 100 shares there and riding the rest down (it eventually went to $221), we were out before the open at $223. In a grand total of six minutes, you made your day's pay. The streak is now at 1,527 in a row for winning trades on this setup.
But wait, there's more. We played the inevitable attempt to rally. Right at the open, it broke through VWAP for a day's pay.
We got involved again when the market tried to break down and came back. Our entry was $227 on a massive green candle. By the time it hit the orange line, it was $228. That’s a 40-second trade. 300 shares is $350 bucks.
Then, the shake-out. A new buy at $227.75 took the stock to $230. Another 2 points. Just on 200 share lots, you made $300, $300, and $600 trading a stock that, if you look at the history books, was only up 88 cents for the day.
But while that was going on...hello, $AEHR.
The greatest trade of the year.
The stock gapped up 36%. I told you in the morning email: there is no chance in hell I am buying a stock gapped up 28% on earnings. If it runs 190%, I don't care.
So what did I do? I waited. They ripped it higher. And higher.
And then we got the rollover. The Finger of God breaking VWAP.
It broke $102.50 and went right to $105. There's 2.5 points in 13 seconds. Then, if you didn't take your money, it went against you. That separates the great traders from the rest. If you shorted there and used prior high candles as your stop, you were safe. When it rolled over again, instead of covering, we added to it.
That trade went from $102 down to $92 for 10 points. It never recovered.
The streak continues: 1,530 times in a row.
I recorded a video summarizing the action today.
Click below to watch the recap and see exactly how we played these setups:
This is what we do every single day. 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.
Kenny Glick | Founder, Hit The Bid
P.S. Morgan Stanley from $228.50 to $226.50 in 39 seconds. AEHR from $102 down to $92. Don't chase the gap. Let the VWAP break come to you. Watch the video recap here to see how it's done.