A Good Defense Is A Good Profit
Hi everyone and welcome to the Yellow Tunnel community, an aggressive short-term trading service dedicated to all classes of traders seeking to elevate their trading skills, market awareness, and trading profits.
Another week of downside pressure for the major indexes as the optics of the invasion of Ukraine has gripped the world’s attention. Heavy sanctions against Russian exports, the frozen assets of Vladimir Putin, and various oligarchs have failed to slow the incursion into Ukraine’s key cities where the eventual overthrow of the Zelensky government looks inevitable.
Big price spikes in crude and other commodities are already risking Europe falling into a recession, but the U.S. remains in pretty good shape per the robust employment data released Friday morning. Despite inflationary headwinds, the U.S. economy is forging ahead and maintaining a reopening trend for most businesses and public places as the Omicron phase of the larger Covid-19 pandemic runs its final course.
At some point, probably not too far away, the market will look past the Ukraine situation and seek to trade higher on decent economic fundamentals for most of the rest of the global economy. There remain numerous questions for market recovery that remain to be answered, but history is on the side of a rebound following geopolitical events that are difficult to quantify in their current state.
CURRENT TRADING LANDSCAPE
Traders are watching to see for any break in the news feed that suggests a cease-fire is pending, which would incite some strong buying. Until then, the selling of rallies has been the drumbeat for the past four weeks. The appetite for trading is very good, but the execution has to be fast as upside moves are quick to evaporate, whereas shorting high-beta stocks has proven to be a steady mode of profit generation.
The $SPY pulled back on Thursday and again on Friday, closing around $430, at the bottom of the recent range. The $SPY was down 0.5%. The value/reflationary ($VTV) closed higher 0.2%, below the 50 DMA. The technology sector ($QQQ) traded lower 1.4%, at $336, and closed at the bottom of the recent range.
The $DXY closed higher, near the $98, at the June 2020 high. The $TLT rebounded 1.2% and closed near the recent lows. The ten-year yield closed lower near 1.78%. The $VIX traded higher near the 33 level.
The $SPY short-term support level is at $420 (key long-term support) followed by $400. The SPY overhead resistance is at $445 and then $460.
Due to the escalation of the geopolitical risks in Ukraine, one has to assume that the $SPY January lows will be re-tested again shortly and most likely continue the downward momentum in the next couple of weeks.
I would be a seller of the high beta stocks into the rallies and have a market NEUTRAL portfolio at this time.
I would consider rebalancing portfolio at this time and have an overall market NEUTRAL portfolio. I do not expect the $SPY to post a new all-time high in the first half of this year. There is a high probability that the $SPY main long-term support at the $420 level will not hold. All eyes are on the geopolitical risk in Ukraine.
"BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at $429 level using SPY and "SELL" signal is at $442 for short-term traders.
If you are trading options consider selling premium with April and May expiration dates.
Based on our models, the market (SPY) will trade in the range between $400 and $470 for the next 2-4 weeks.
NEW EARNINGS POWER TRADER SERVICE
We recently launched our new Earnings Power Trader service that we at Yellow Tunnel are very excited about. Each week, our expert traders use our AI Tools to provide the Top Bullish and Bearish Stocks, each with an Entry Price, Target Profit, and Stop Loss.
This new service is special because it offers real-time alerts via SMS and access to Vlad's live positions and orders. When I put together this system, I wanted to be in the fight with other investors. That’s why I don’t play on your emotions to sell newsletters - I put my money where my mouth is.
Every trade recommendation that I make using this system – comes straight from the list of trade recommendations I use myself.
Not only that but every trade I make is logged in detail for you to review at any time. You can see my entire trading history, updated LIVE so that you can see, learn from, and even copy my trading strategy.
Signals have historically averaged over 85% accuracy in my live trading since inception. Sometimes we hold position 2-5 days by using options (selling OTM Calls and Puts spread) and targeting 1% target gain and 1% stop loss using stock price. The green color should be interpreted as a bullish signal and the red as a bearish signal.
How To Use Our Signals
Once you become a member, I encourage you to review our Live Trading Room recordings to see how I trade Aggressive Power Trader signals in my account. A snapshot of how we produce our Live Trading Room Sessions shows how we pack in a lot of information that can be accessed from whatever device you’re driving.
As a reminder, consider buying near the "BUY" level with a "10 days prediction" higher than the close price. In our live trading room, I usually hold a position for 1-2 days.
I allocate less than 5% of my portfolio if the position is being held overnight. On average, less than 1% of the portfolio should be at risk if you own a position for less than one day.
I enter a position at the predicted LOW (BUY) price or yesterday's close price. My stop loss is 1% and my target gain is 1% of stock price. I target 75% accuracy using these signals.
Few subscribers asked about Options trading using the signals provided. Please review live trading room recordings. I often sell OTM credit put spread using weekly options and collect 0.5% using stock price. For example, if the stock is trading at $100, I would sell OTM put (strike less than 100) with option BID price close to $0.5.
------------------------------
It’s been very difficult the last few days…
It’s been difficult the last few days. I am an American citizen, originally from Kyiv, Ukraine, and have family and friends back home. Freedom to build a business and especially freedom of the press has been a blessing. Thank you for American values and for sharing them with me and my family. We appreciate your support and honor our rights.
Click Here To See How It Works
As a thank you, I would like to show you what I do (in real-time).
Every trade recommendation that I make using this system – comes straight from the list of trade recommendations I use myself.
Not only that but every trade I make is logged in detail for you to review at any time.
As the market changes with the beginning of the Ukrainian war, the beginning of inflation, and further global uncertainty…you can see my new trading updates LIVE so that you can Do-As-I-Do and even copy my trading strategy.
From the beginning of the pandemic, January 1, 2020, to February 24, 2022, my total return on risk is an astounding 427%. I’ve made 1341 trades since then with 1146% of them having made money. **
Sincerely,
Vlad Karpel
CEO and Founder
Click Here To See How It Works
------------------------------
SECTOR SPOTLIGHT
The fluid events in Ukraine have given rise to the defense and aerospace sector on the notion of increased spending for weapons budgets, both in the U.S. and around the globe. This is a natural sector rotation underway and can be lasting as markets anticipate a string of large contracts making headlines in the weeks ahead.
From a sector standpoint, the iShares U.S. Aerospace & Defense ETF (ITA) is in focus for traders seeing to trade the space while alleviating single stock risk. IAT tends to be the most coveted of the defense plays for ETFs and one that has all the right stocks as its top ten holdings reveal.
The recent price action shows shares of ITA trading sharply higher from $100 to $112 followed by some back-and-filling that is retracing about one-third of the gains. This is always a healthy technical development and provides for an attractive entry point where the stock has broken to the upside of its pennant formation defined by the downward sloping line that catches all the tops going back a year.
Even more impressive is the confirmation we get from our AI-driven platform where the Forecast Toolbox gives ITA a Model Grade “A” rating and a 10-day Predicted Resistance price target of $114.69 that would take the shares above the previous high in the past week and establish a new 52-week high. – a very bullish development.
TRADE OF THE WEEK
Within the top ten holdings of ITA, the hottest name on that list is Northrup Grumman Corp. (NOC), a major defense contractor for all the major branches of the U.S. military and supplier of weapons and communications systems to foreign customers. The stock has roughly a $63B market cap with an average daily volume of over the past ten days of 1.46 million shares, up about 40% from its three-month average.
This past week, shares of NOC posted one of the most impressive upside breakouts I’ve ever seen, vaulting from $400 to $472 in a span of a few days, and closing out the week near the high print on Friday. This is a powerful move higher in that the stock traded to a new lifetime high.
When we apply our AI-driven Seasonal Chart, we get a short-term Lower reading for the next 10 days, which makes perfect sense since the stock needs to consolidate. And then we get a Higher reading for the following 20 and 30-day periods, making for a great setup in the next week or two. This is exactly the kind of AI-endorsed trade that we bring to our community, high-profile, liquid with a high degree of AI-modeled certainty.
I’ll be looking to trade NOC from the long side in the coming days and weeks given its amazing breakout and a fresh emphasis on the sector with the stock advancing on a better than 50% increase in average daily volume.
Through our services, we tie our Tradespoon Live Trading Room to manage the parameters of every trade. And we update our closed positions daily. Our AI platform works seamlessly to provide our subscribers with the most robust trading experience available anywhere in the market today.
The beauty of our AI-driven system is that we are always equipped to bring new trades ideas to our members. Trades in best-of-breed stocks and ETFs that are not yet recognized by the larger universe of traders.
We really pride ourselves on this kind of discovery process to bring trades with very high probability risk/reward parameters to members throughout each week. Our track record speaks for itself from the standpoint of a Winning Trades Percentage, Average Return Per Trade, and Net Gain.
Considering the volatile landscape of late, we’re taking advantage of market dislocation and valuation distortion. We’re striving to help our members ring the register all the time and this is why serious traders should not trade without checking in with market-proven AI tools.
The consistent performance of our services is just incredible. Our historical stellar performance is made possible by being right on 85.17% of all trades that we made with an average profit of 36.54% per trade on our collective trade recommendations. To my knowledge, this trading performance is one-of-a-kind that stands alone in the marketplace for superior trading advice where our numbers and results speak for themselves.
Once you’ve become a member of any of our services, I highly encourage you to view the instructional videos on how to best use your membership and participate in live weekly strategy roundtable workshops that are also archived in the event that they need to be viewed at a later time.
Traders seeking the most-timely directional trading strategies where historically over 85% of all my trades were profitable to come alongside the Yellow Tunnel community and make one of our services your go-to AI trading platform for no-excuses Trading.
Our AI platform crunches and analyzes thousands of proprietary performance indicators to help identify the next big trades to help you supercharge your portfolio!
Go to our website at www.yellowtunnel.com and make one of our services your default trading system where the AI that power my all-world, the proprietary platform, can help you make 2021 the best year on record for your trading portfolio.
Have a wonderful week ahead, keep praying for the people of Ukraine, and let’s create some meaningful wealth together in 2022.