Surprising 5G Super Stock!
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.
Rotation from growth the valuation is a daily back and forth exercise where the known quantities of compounded annual growth rates (CAGR) for tech are heavily weighed against the historically steep discounts deep cyclical stocks offer at a key inflection point when the economy is trying to identify escape velocity from the coronavirus pandemic.
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
Let’ switch gears and talk about what we do know. Treasury yields were significantly higher this week (the TLT reached 50 days MA) and the Dollar Index (DXY) continues to go through building a short-term bottom.
My opinion has not changed. The short-term bottom for SPY is at $300 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 and can be retested in the next 2-4 weeks. I would be a buyer using any short-term corrections, but would not chase the stock market at these levels.
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. What is notable is the even in an elevated market, money isn’t leaving the market, but instead rotating into value sectors.
SECTOR SPOTLIGHT
This past week, we say strong conviction moving into the 5G space as several stocks that are key carriers, product suppliers and infrastructure providers broke out to the upside in an across the board. Fund flows were strong on the front end of this past week as several price targets of the stocks of key 5G companies were raised.
Sometimes when a share up move is underway, traders don’t have time to wrestle the chore of thorough due diligence on individual stocks. Time can and is usually of the essence when there is a sudden shift in sector rotation, and the surge of interest into the 5G sector was sudden and impressive.
So, taking this ‘serious urgent business’ stance to the next step, traders are pouncing on the Defiance Next Gen Connectivity ETF (FIVG) to capture the move-up sector-wide . This is the purest spectrum play to buy the 5G sector with strong leadership within its top holdings that make up 38.40% of total assets.
Source: YahooFinance
After its IPO in early 2019, shares of FIVG are trading $29.70 and are in strong up and to the right trend. The daily volume of the past two weeks has been heavy to the upside, a very strong buy signal that is captured by our AI tools as just one of several indicators we deploy on our platform to validate and verify our entry and exit points for every trade.
This ETF is composed of 5G chipmakers, networking infrastructure providers, equipment testing, cell tower providers, carriers and wireless product makers that give the trader exposure to all the hot areas of 5G without having to be a stock picker.
Grant it, shares of FIVG won’t deliver the scale of volatility that some traders require, but there is great satisfaction in sector diversification when it comes to wagering one’s trading capital on leading technology – and FIVG is the go-to ETF to trade.
I’ll be looking to utilize this bullish scenario for our Weekly Power Trader members with short-term trading strategies in the days ahead. This anticipated momentum for the 5G stocks will provide several high-probability opportunities for our Weekly Power Trader advisory service.
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TRADE OF THE WEEK
There is little dispute from my view that Qualcomm Inc. (QCOM) is the de facto 5G stock to lead the sector higher. It’s recently launched Snapdragon XR2 5G platform is the world’s first XR platform to combine 5G with AI. This platform will allow users to experience unrivaled extended virtual reality with 360-degree views and 3D audio.
Qualcomm’s 5G chip technology will be found in all the leading Apple and Android smartphones that penetrate what will be the biggest wireless upgrade in history. There are numerous applications that only 5G speed and make possible. This applies to smart homes, autonomous driving, augmented reality, remote networking and all manner of instant downloading of large files for personal and business use.
One look at the one-year chart and it’s easy to see the enthusiasm of late as the stock truly gapped higher on some big price target increases by notable Wall Street analysts.
Our AI-driven stock forecast Toolbox gives Qualcomm a “B” Model Grade rating with predicted short-term price resistance up at $121.50 over the next ten days. This provides and excellent window of profit potential if traded right and my AI platform will identify the moment in time when the stock fills in the gap that provides the perfect entry point for traders to get long in this exciting upside breakout trade.
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 $1.7 million dollars. This stellar performance is made possible by being right on over 75% of all trades with an average profit of 24.76% 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.
With the tech sector has delivered the most consistent winning trades year-to-date, there is dynamic rotation underway where a powerful set of AI tools can crunch the data to unveil the trades with the highest probability of being profitable. Our AI platform crunches all the data 24/7 and we all make money putting these freshly minted trading strategies to work week after week. It’s a beautiful model, this AI thing of ours.
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.