A 2 Day VWAP Trade (CNC)

During a daily review an SMB Trader wrote this about his trading in CNC:

CNC pulled back to 2 day VWAP and break out area from yesterday. Waited for break in intraday downtrend to get into this stock. When it began to hold above .70 I was up to 1,200 shares from .72. Was waiting for the push through .80 to feel comfortable in this for trade2hold. .80 lifted and then failed so I took off one third at .79 and then got stopped out of rest below .70. I got back in lighter above .80 later and started to build up when CNC held 27.00 bid for first times. I got out in the .90s and .80 when this level failed too. This play had a lot of upside and I barely lost anything in this so I can’t complain.

I responded:

I don’t like this trade.
1) overall CNC was down a ton yesterday
2) 28 sold the crap out of it into the close on Monday.
I get you guys like the 2 day vwap play but i dont like this subset of that play for the reasons above. thoughts?

I then shared my thoughts of this trade with Shark, a more experienced trader. He responded:

I am not as big of an advocate of the two day v wap as a lot of the other ppl chirping it all the time.. but I think that this trade makes a lot of sense for a lot of reasons… This is into the big support zone from the prior day… The stock pulled in and started to break the downtrend and the tape changes at this level… The two day v wap means this is the average price of the stock since the gap down and a place where longs might try to defend their positions… It’s a long way to 28 means that even if sellers do step in there is still decent upside.. However for me it’s not a big long until it gets back above 27.. And I think we were all overly aggressive until it is back above the v wap for the day and the v wap flattened out and turned higher. It was still a weak stock on tr day until it held higher and should have been no more then tier 1 .

What are your thoughts on this 2 Day VWAP trade?