Vlad’s Money In The Bank Trade

Published Jan 17, 2021

Vlad’s Money In The Bank Trade

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.

The promise of another $1.9 trillion is a stimulus from the incoming Biden administration that failed to impress a market that had already priced in such expectations. It should be of no surprise that some profit-taking along the way is in order and Friday’s tap reflected such price action. Contrary to popular opinion, markets don’t go straight up.

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 SPY continues to trade in the well-defined range between $375 and $382. The main theme for Friday was a quick reversal of prior day rally in treasury prices which brought back reflationary trade (XLE, XLF, XLI, SMH and IWM rallied). Technology stocks underperformed (TSLA, AAPL, FB).

The new SPY support remains at the $372 level and Friday’s session tested that level. The U.S. Dollar and the Treasuries continued to trade in the downtrend, but if stocks give back some ground in the next couple of weeks, both the dollar and Treasuries will see a short-term move higher as a safe haven rotation.

As long as the SPY is trading above the $372 level, the SPY will continue to make incremental gains and can reach the $380-$385 level second half of January. With that said, the bulls have been losing momentum and I still expect up to a 5% correction in January-February.

Once the expected correction has run its course, the bull market will resume its long-term rally and will continue to make new highs into March-April. I would be a buyer using any short-term corrections and use dollar-cost averaging strategy to accumulate positions. If you are trading options consider selling premium with March and April expiration dates.

"BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at $373 level using SPY and "SELL" signal is at $379 for short-term traders. Based on our models, the market (SPY) will trade in the range between $350 and $385 for the next 4 weeks.

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 your 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 the 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.

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SECTOR SPOTLIGHT

The torch of market leadership has been passed to the financial sector, at least for the first week of 2021 is concerned. The selling of Treasuries in December, the flood of home refinancing activity investment gains from wealth management and proprietary trading operations are showing up in better-than-expected fourth-quarter results that were posted Friday by JPMorgan & Chase Co. (JPM), Citigroup Inc. (C), PNC Financial Services Group Inc. (PNC) and Wells Fargo & Co. (WFC).

The most widely traded proxy for the financial sector is the Financial Select Sector SPDR ETF (XLF) that hit a new all-time high this past week of $31.62 in what can only be described as a torrid rally that has only picked up speed with strong buying of the top ten holdings in XLF that make up 53.53% of total assets.

Our AI platform is bullish on XLF. The Stock Forecast Toolbox gives XME a “B” Model Grade rating with a 10-day price target of $35.95. With the shares trading at $30.73, traders have an excellent opportunity to trade XLF from the long side in the short-term.

TRADE OF THE WEEK

Of the top holdings in XLF, the one stock that stands out among its peer group is JPMorgan Chase & Co. (JPM). As the nation’s biggest bank and arguably the most powerful investment bank, JPM touches all parts of the economy.

Last Friday’s Q4 results reported by the company were excellent. JPM posted earnings of $3.79 per share, $1.14 better than the S&P Capital IQ Consensus of $2.65; revenues rose 3.3% year/year to $29.22 bln vs the $28.74 bln S&P Capital IQ Consensus. Credit costs net benefit of $1.9 billion included $2.9 billion of net reserve releases and $1.1 billion of net charge-offs. Average loans up 1%; average deposits were up 35%.

The stock ran up huge in front of the earnings report, so some selling on the news is quite natural. It just demonstrates the high level of confidence the Street had in the stock before they reported. Now with the bullish data out, traders will be looking to buy JPM at attractive entry points for the days and weeks ahead.

When we apply our AI platform to JPM we get a very bullish read. Our proprietary Seasonal Chart has a high rating for the stock as all four probability readings for the next 20, 30, 40 and 50-day periods are registering “Higher” data for us.

So, when the stock provides bouts of back and filling, traders can get long the stock with a high level of confidence. This is what AI does for our subscribers, it identifies, clarifies and verifies high-quality trades.

By being a member of Weekly Power Trader, its these kinds of opportunities that our AI-driven platform provides our members to look forward to every day the put their risk capital to work on both long and short positions.

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 the 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.

The beauty of our AI-driven system is that we are always equipped to bring new trades to our members. Trades in best-of-breed stocks and ETFs that are not yet recognized by the larger universe of traders. In just the past two weeks, our Weekly Power Trader members have profits on 13 out of 14 recommended trades.

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.

The consistent performance of our Weekly Power Trader service is just incredible. This stellar performance is made possible by being right on 85.57% of all trades with an average profit of 32.33% per trade. Retail investors will not find this kind of track record available at an affordable price anywhere in the marketplace for 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.

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