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.
Some long-needed consolidation for the market is occurring near the all-time highs in impressive lateral price action. The appetite for the leading mega-cap tech stocks remains high and with six stocks accounting for 25% of the S&P 500, as they go, so goes the market. Apple, Amazon, Microsoft, Google, Facebook and Netflix continue to bear the market’s torch.
NEW WEEKLY POWER TRADER SERVICE
We recently launched our new Weekly Power Trader service that we at Yellow Tunnel are very excited about. Each week on Sunday, 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.
Also, note that the Weekly Power Trader signals are meant to last for 5-10 days as long as the vector confirms the same direction as the original pick, for stocks we use a target gain of 2% and stop as 2% of the stock price.
Signals have averaged over 75% accuracy in my live trading since inception. Sometimes we hold position 2-5 days by using options (selling OTM BULLISH PUT spread) and targeting 1% target gain and 1% stop loss using stock price. Green color should be interpreted as a bullish signal and Red color as a bearish signal.
CURRENT TRADING LANDSCAPE
The market continues to make incremental gains with the narrow leadership of Technology Sector (FAANG and WFH) stocks. Treasury prices continue to build the bottom (the TLT traded below 50 days MA) and the DXY continues to go through the bottom building process, shortly breaking current support at $92.50. Industrial, Emerging Markets, Retail, Financial and Energy sectors are trading near or below key long-term support levels.
My opinion has not changed. I do not think SPY and QQQ will be able to break through the overhead resistance in the next 2-4 weeks. The short-term bottom is at $310 and potentially can be retested, most likely in August (put/call ratio is at the lowest point this year). SPY longer term overhead resistance is at $340. I would be a buyer using any short-term corrections, but would not chase the stock market at these levels.
"BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at $335 level using SPY and "SELL" signal is at $340 for short term traders.
I expect the market volatility and the two percent daily market moves to persist. SPY top is set at $340 and the market can potentially retest all time high level in the next 1-2 weeks. The market can overshoot support and resistance levels when VIX is elevated. My strategy is to buy 5-10% market corrections.
Based on our models, the market (SPY) will trade in the range between $300 and $340 for the next 4 weeks.
With all the attention being given to stocks, there is almost no reporting on the fact that bitcoin is trading at a 52-week high, currently quoted around $11,700. The cryptocurrency de facto leader has rebounded sharply after crashing below $4,000 back in March with the rest of all asset classes, save for Treasuries.
Now, bitcoin and cryptocurrency asset manager Grayscale has said, "the current bitcoin market structure parallels that of early 2016 before [bitcoin] began its historic bull run,"—meaning the bitcoin price could be headed sharply higher. "
"Amidst unprecedented monetary and fiscal stimulus, investors are searching for ways to protect against an ever-expanding monetary supply," Grayscale research director Phil Bonello wrote in a report.
CNBC reported this past week that over $50 billion of cryptocurrency moved from China-based digital wallets to other parts of the world in the last year, according to a report by Chainalysis. Chinese citizens are only allowed to buy up to $50,000 of foreign currency a year at a financial institution. How much of it is bitcoin is unknown? What is clear is that interest in bitcoin is soaring once again.
TRADE OF THE WEEK
Of the many ways to play cryptocurrencies, stock investors need to look no further than owning shares of Grayscale Bitcoin Trust (GBTC), the world’s largest digital currency asset manager. Shares of GBTC are structured to mirror the day-to-day movement of the price of Bitcoin and trade an average of 6 million shares per day.
Our AI-driven stock forecast Toolbox shows near-term price resistance at $14.91 or just right above where the stock currently trades.
Since there are no options traded on GBTC, this is a pure stock trade for those that want to participate in the Bitcoin rally. But that won’t deter us from working with this strategy among our recommended trades. If my AI tools flash strong indicators, we’ll be highly inclined to get fully involved. Stay tuned!
Our Weekly Power Trader advisory service takes positions in only blue-chip stocks and ETFs that are “green lighted” by my proprietary AI tools, and when confirmed, are added to the portfolio with my investment capital invested in each and every trade.
Trading Thoughts: 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 and allocate no more than 5% of trading capital to any single trade.
I allocate less than 5% of my portfolio if I hold a position overnight. On average, less than 1% of the portfolio should be at risk if you hold a position less than one day. I personally look to enter a position at predicted LOW (BUY) price or yesterday's close price. For Weekly Power Trader, my stop loss for stocks is 2% and my target gain is 2%. I target 75% accuracy using these signals.
Through the Weekly Power Trader service, we tie our Tradespoon Live Trading Room to manage the parameters of every trade. And we update our closed positions daily. The two platforms work seamlessly to provide our subscribers with the most robust trading experience available anywhere in the market today.
For those that have followed since inception, a $100,000 initial investment when backtested may have grown to over $1.6 million dollars. This stellar performance is made possible by being right on over 75% of all trades with an average profit of 24.71% per trade. This kind of performance stands alone among all other trading services.
Once you’ve become a member to any of our service – Weekly Power Trader or Aggressive Power Trader, 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 are looking for alternative assets to reduce stock market and dollar risk, which is why the popularity of assets like Bitcoin and gold have flourished. The good news is recent this run-up may still just be in the early stages of a cyclical move higher which could take the price of Bitcoin back up toward its old high of around $19,000.
Our AI platform crunches all the data 24/7, generating a constant stream of trades with high probability of producing profits. Our record speaks for itself and I want to encourage all readers of this blog to join today and start receiving our updates ASAP!
Go to our website at www.yellowtunnel.com and make the Weekly Power Trader service your default trading system where the AI that powers my all-world, always thinking platform.