Vlad's Gushing Profit 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 bull trend has run into some mixed headwinds that have traders working hard to sift through the issues at hand that are potentially disruptive forces. First and foremost is the newfound concern about inflation after wholesale inflation data for January came in hot and well above forecast.
On Thursday, Treasury Secretary stated in an interview that she and the Fed would rather let inflation push higher than step on the stimulus brakes just as the vaccine rollout is making progress and the economy is stabilizing.
The yield on the benchmark 10-year Treasury rose to 1.33%, commodities are trading higher across the board with crude oil making the most pronounced move up as WTI has cleared $60/bbl and reasserted the energy sector as a market leader.
As earnings season winds down traders seeking the next big catalyst can focus on the Congressional Covid-19 stimulus bill that should be passed by the end of February and provide stopgap funding for millions of Americans still out of work.
It is thought that a major infrastructure spending bill will start to make progress soon thereafter, giving the market what it loves to embrace, huge spending and stimulus that has the full weight and support of the Fed, Treasury, White House and Congress.
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
I have been in constant communication with my relatives from Texas. I cannot begin to imagine what they are going through and they are actually pretty lucky because they live in a house with a fireplace and have stocked up on food. I listen, helplessly.
I wish I could help, but I just don’t know-how. I am confused why I barely hear about it on the news, why there is barely any outpouring of outrage, and where the help is. People are freezing, people are starving, there are children and elderly, living in unlivable conditions, without end in sight, with yet another snowstorm on the way. If you know how I can help, please let me know.
The SPY continues to trade in the narrow range. All sectors traded in the red except utilities (XLU). Growth stocks sold off the most this past week. AAPL briefly crossed below its 50-day moving average. Short-term, the SPY range remains between $370 and $395. The DXY rebounded today and a stronger dollar will pose a challenge for value stocks in the short-term. TLT remains in the downward momentum as the yield curve steepens.
A short-term correction has started and probably has 1-2 more weeks of making lower lows and lower highs. The $388 level is key support for the SPY short-term with major technical support is now at $370-$375 and I expect the SPY to retest these levels in the next 1-2 weeks.
The bottoming process has started and the worse part of the sell-off is now behind us. The market will finish the bottoming process by end of February and will resume bullish momentum by middle of the March.
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 April and May expiration dates.
"BUY" signal based on the Aggressive Power Trader Portfolio for Monday is at $387 level using SPY and "SELL" signal is at $394 for short-term traders.
Based on our models, the market (SPY) will trade in the range between $374 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
One cannot view the current market landscape without being totally impressed with the rally in the energy sector. It’s been truly eye-popping, considering this time last year crude technically traded at a negative valuation because of contango-related futures trading that roiled the oil market.
WTI crude’s latest advance to $60/bbl brings new life to the once downtrodden, politically unpopular sector that has been severely under-owned by institutional investors. Now there is a panic move back into the sector incited by drastic production cuts, low refining inventory levels and long lead times to raise those inventories.
When trading the energy patch with a broad brush, the go-to instrument is the Energy Select Sector SPDR ETF (XLE). While shares of XLE have made traded from $30 to $46 in the past three months, from the 2-year chart below, there is still a lot of room for XLE to run considering where it traded back in 2019.
Looking at the top ten components within XLE, we see the composition of the best-of-breed blue-chip stocks making for a solid collective trading opportunity. Having exposure to upstream, downstream and midstream exposure is a way to cast a net over the entire sector.
Upstream refers to the exploration and production of oil and natural gas. Downstream refers to refined products such as gasoline, diesel fuel, jet fuel, lubricants and solvents going to market. And midstream is the transfer of these crude and refined fuels through networks of pipelines. The top ten holdings that makeup over 78% of total assets well represent these subsectors with the major integrated energy companies at the top.
Shares of XLE show up strongly in our proprietary AI platform model. Looking at the Seasonal Chart, we see XLE is a bit overbought over the next couple of weeks after posting a huge run, but then over the next 30, 40, and 50-day periods, our model is forecasting a steady climb that will provide for consistent trading opportunities.
We’ll be looking to utilize XLE within the Weekly Power Trader service as our indicators and signals dictate. Make sure to be a member so as to not miss out on the next trade we make in XLE and consider heavily to let us guide you through this trade if and when we put it on.
TRADE OF THE WEEK
Occupying the number one position in XLE is Exxon Mobil Corp. (XOM), arguably the most hated oil stock by long-term holders until recently. For years, the stock couldn’t get out of its own way as revenues and earnings plummeted, calling into question whether the company would slash its tried-and-true dividend.
The company has withstood the storm and has seen its shares recover from a low point of $30 to currently trade at $52. Where XOM has certainly made an impressive move off the low, the 2-year chart shows that it traded as high as $82 when oil previously traded at $60/bbl, implying the potential for considerable upside going forward.
When we apply our AI platform to XOM, there are bullish indicators for traders to work off of. The Stock Forecast Toolbox gives XOM a Model Grade “B” rating with a 10-day upside price target of $58.14 as a Predicted Resistance level. As can be seen from the table’s layout, our AI tools forecast daily price movements that traders can utilize to walk the stock higher with short-term trading opportunities.
When applying our Forecast Toolbox to CAN, we can see a 10-day predicted resistance of $13.17, which is just above where the stock traded on Friday. The stock needs to back and fill in the gaps underneath but presents an exciting trading opportunity if managed properly.
This is what our precision AI platform does for our subscribers, it identifies, clarifies and verifies high-quality trades. By being a member of Weekly Power Trader, it is these kinds of opportunities that our AI-driven platform provides our members to look forward to every day they put their risk capital to work on both long and short positions.
Our Weekly Power Trader advisory service shows 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 as well.
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 booked profits in every single recommended trade for February.
Below is a table showing most of the trades closed in February and we’re still a week away from finishing out the month. This is a compelling winning record by any measure and should offer those readers of this blog a strong incentive to join as a new Weekly Power Trader member and put our trading system to work right away.
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 a standpoint of a Winning Trades Percentage, Average Return Per Trade and Net Gain.
The consistent performance of our Weekly Power Trader service is just incredible. This stellar performance is made possible by being right on 86.41% of all trades with an average profit of 33.52% 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.
Traders seeking the most-timely directional trading strategies where over 86% of all trades are profitable should take action and come alongside the Yellow Tunnel community and make Weekly Power Trader and Aggressive Power Trader your go-to AI trading platform for no-excuses performance.
Our AI platform crunches all the data, generating a constant stream of trades with the highest probability of generating incredibly profitable returns available to beginning, retail and professional traders anywhere in the marketplace today.
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 and make 2021 the best year on record for your trading portfolio.