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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.
Friday’s news release that the Russian Foreign Minister Sergei Lavrov and U.S. Secretary of State Anthony Blinken will have talks next week provided a minor respite from the extreme volatility of the past week. As a former citizen of the Ukraine province before its independence in 1991, and seeing how this heightened state of alert is gripping my former homeland, it breaks my heart. And with family and friends still living in Ukraine,I am extremely worried on a personal level.
Coming to the U.S., getting educated, and working tirelessly, I was able to fulfill the American dream of building a strong close family and growing a business with an amazing group of team members, OptionsXpress, that was sold for over $1 billion to Charles Schwab back in 2011. I love America and the incredible opportunities it affords people like me, inspired to create, take on some risk, not be afraid of burning the midnight oil, and learning all along the way how capitalism and democracy flourish.
The work experiences I have from my life in Chicago and seeing a business grow to something fantastic is what I’ve brought to YellowTunnel and its trading services that are within its offerings. Like the AI algorithms and coding I’ve created over the past decade, I keep crunching more knowledge every day to make our platforms the most rewarding experience to our loyal members.
And it is with great enthusiasm that I look forward to the next decade to continue this endeavor to enhance the lives and financial well-being of all our subscribers that are on this mutual journey with my team that is like family and me. I am proud and very grateful to be an American and for my family to live free. Thank you America, thank you Americans, and thank you, my subscribers. So, let’s get to the business of analyzing this volatile market to where we can capitalize on all that is taking place.
Lately, inflation, a few high-profile earnings misses, and now the rising concern of a Russian invasion into Ukraine has the major indexes enduring wide price swings. At the same time, roughly 80% of companies in the S&P 500 exceeded fourth-quarter earnings estimates, while the latest data on Covid-19 caseload is downright bullish for the U.S. getting back to normal in the not-too-distant future.
These two developments are big news for a market beset by a hawkish Fed reacting to some hot inflation data and the need for the global supply chains to free up so as to bring prices down.
It's a real tug-of-war between the bulls and the bears, but I’m of the view that sales and earnings matter most to the market. The nervous market as bond yields is in check with the 2-year Treasury yield around 1.5% and the 10-year T-Note yield at 1.93%. Crude oil continues to trade above $90/bbl and will likely hold that level given the geo-political risk environment but could spike to $100+/bbl on negative Ukraine headlines.
CURRENT TRADING LANDSCAPE
The market is undergoing an extreme test of fundamental and technical integrity; this past week, it needs to pass this test on the strength of robust earnings, guidance, and upbeat economic data. As troubling as the news is from the Ukraine situation, the market has done a good job pricing in some policy actions by the Fed and has demonstrated that it can withstand some commodity inflation.
At the same time, each day brings with it some element of uncertainty that is keeping the market landscape in a nervous state, compelled to swing higher and lower by high-frequency trading firms triggering buy and sell programs that can rattle the nerves of even the most seasoned investors. But if the market is ultimately supported by bullish revenue and earnings fundamentals, then the primary uptrend should remain in place.
The $SPY sold off Thursday hard, closing at $437, close to the most recent lows, and is looking to find support. The $SPY was down 2.2% and closed near the bottom of the retracement from 2022 low to high, key long-term support. The value/reflationary ($VTV) closed lower, down 1.3%, at the February low. The technology sector ($QQQ) closed down 3.0%, at $345 near the January low.
The $DXY closed flat, at $96, below the 50 DMA. The $TLT was higher by 0.7% and closed near the April 2021 low. The 10-year Treasury yield closed near 1.96% and the $VIX traded higher at the 28.
The $SPY short-term support level is at $430 (key long-term support), followed by $420. The SPY overhead resistance is at $460. I do expect volatility to persist, but the pattern of higher lows and higher highs should continue to emerge. Albeit any geopolitical risks, the market should continue the rebound next week. I would be a seller of the high beta stocks into the rallies and continue rotating the portfolio into the value stocks ($XLE, $XLI, $XME, and $XLF).
Per the latest set of key earnings reports, Walmart Inc. (WMT), Cisco Systems Inc. (CSCO), and Nvidia Corp. (NVDA) all posted excellent quarterly results, supporting the narrative that strong earnings typically trump other perceived risks to the market in the big scheme of all the market has to contend with.
I’ve been recommending the rebalancing of portfolios and having an overall market BULLISH outlook. I do expect the $SPY's rebound to restart this week and continue for the next 1-2 months. I do not expect the $SPY to post a new all-time high nor break January low in the first half of this year. As noted, for the time being, all eyes are on the geopolitical risk in Ukraine.
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 positions for 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.
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With a few clicks, I make money just about every day.
Then I close my laptop and go do wonderful things like travel the world with my family and shoot hoops with my buddies.
That’s because this supercharged AI machine does all the heavy lifting… and I no longer trade my time for my money.
Imagine living like that.
It sounds like the dream job, right? Living like the One Percent!
It’s my reality.
And here’s the fun part: I’ve actually done it twice.
The first time I did, I helped build it for a company. That company was sold to Charles Schwab for $1 billion.
That’s how valuable their technology was.
Then I built another one… this time, for me.
Click Here To See How It Works
Then I close my laptop and go do wonderful things like travel the world with my family and shoot hoops with my buddies.
That’s because this supercharged AI machine does all the heavy lifting… and I no longer trade my time for my money.
Imagine living like that.
It sounds like the dream job, right? Living like the One Percent!
It’s my reality.
And here’s the fun part: I’ve actually done it twice.
The first time I did, I helped build it for a company. That company was sold to Charles Schwab for $1 billion.
That’s how valuable their technology was.
Then I built another one… this time, for me.
And I want you to have it.
Not for $1 billion.
And I’m not auctioning it off, either.
I want to hand you an opportunity to get this machine working for you - so that you can join the rest of us.
It’s easier than you think. Click HERE to see what I’m talking about. You won’t believe it.
Click Here To See How It Works
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SECTOR SPOTLIGHT
One of the real luxuries of coming to the other side of earnings season is that traders see which companies really hit it out of the park and which sectors shined most in terms of financial guidance for the current quarter and for the balance of 2022. This is where a good deal of heavy fundamental lifting is done, revealing top and bottom-line performance that provides full transparency of profit margins – which Wall Street analysts care deeply about.
Some have referred to the semiconductor sector as the new-economy industrials, as chips are embedded in just about every line of products made in either the manufacturing process or within the finished products themselves. Between the semiconductor equipment companies and the chipmakers, the number of tradable stocks that qualify as institutional favorites is not that long of a list.
For traders who prefer to trade the sectors in lieu of single stocks, the VanEck Semiconductor ETF (SMH) tends to get the most interest from the trading community and my AI platform. From www.yahoofinance.com the top ten holdings for SMH account for almost 64% of assets with the largest chip foundry, Taiwan Semiconductor Co. Ltd. ADR (TSM), as the #1 holding.
We do our best technical work when we apply our proprietary AI models to each and every trade. For SMH, our AI-driven Seasonal Chart shows a very bullish “Higher” probability reading for the next 20, 40, and 50-day periods. This would suggest a pattern of a sharp snap-back rally in the next two weeks, followed by a period of consolidation that would then open up to an extended move higher over the course of several weeks.
This is what our precision AI platform brings every day to our members. It identifies, clarifies, and verifies high-quality trades like a clear and powerful pivot point in stocks and ETFs like SMH. By being a subscriber of any one of our services, it’s these kinds of opportunities that our proprietary algorithms provide and what to look forward to every day, where short-term risk capital has a high probability of generating profits.
TRADE OF THE WEEK
On the short shortlist of those companies that do occupy the upper echelon of the semiconductor industry, Qualcomm Inc. (QCOM) holds a special place and an enviable one at that if you are their competition. The company is the pioneer and leader of 2G, 3G, 4G and now 5G wireless technology that is powering enhanced mobile broadband, delivering high-performance for mission-critical communications, and driving the massive migration of the Internet of Things (IoT).
The company is also not waiting on the burgeoning future for self-driving cars either. In October 2021, Qualcomm purchased auto components supplier Veoneer Inc. for $4.5 billion to immerse the company heavily into its next driver of future revenue growth. In technology, a company either leads or tries to follow by simulating or simply gets out of the way, and Qualcomm has been steamrolling its competition for over 20 years.
For the fourth quarter, Qualcomm reported revenue of $10.7 billion and earnings of $3.23 per share, both of which beat consensus analyst forecasts. Shares of QCOM rallied to $190 on the news before spending the past two weeks settling back down to trade just under $165 where my AI tools are getting bullish.
When we apply our AI Forecast Toolbox to QCOM, we get a very bullish intermediate-term price target of $264, or about 100 points higher than where the stock currently trades. 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 QCOM from the long side in the coming days and weeks given its robust outlook for the markets it addresses and the super-cycle it is enjoying as the primary modem chip provider to Apple Inc. (AAPL) for its line of iPhones and all of Apple’s wireless devices.
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 don’t trade without checking in with market-proven AI tools. Here are some examples of recently closed trades using our services.
The consistent performance of our services is just incredible. Our historical stellar performance is made possible by being right on 85.46% of all trades that we made with an average profit of 36.88% 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 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 powers 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 and let’s create some meaningful wealth together in 2022.