High-Flying 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.
As the market has done a masterful job of shaking off almost every negative headline that has been thrown at it all year, yesterday’s white-hot release of the October CPI was something the market had to grapple with. The Covid-19 Delta variant, global supply chain disruptions, $85/bbl crude prices, and the Evergrande financial calamity in China couldn’t derail the bulls, but the one thing that could if not reigned in is inflation.
Inflation is like a force of nature, something that appears to be beyond outside control once in motion. Inflation comes in several forms – commodity-related, professional services, and labor being the primary causes. However, when enormous amounts of debt are being created, what is known as monetary inflation can also have a negative impact on markets. In the case of the current economy, all of these forces are at work.
This week’s auction of 30-year Treasuries was also a red flag as the bid-to-cover ratio was low, meaning demand was soft. The yield on the benchmark 10-year Treasury rose to 1.56% and because Thursday was Veterans Day, the bond market was closed, so Friday’s session will be interesting to see if there is follow-on selling pressure or whether it was a short-term reaction. My view is that bond yields will continue to tick up.
Timing rallies and pullbacks are crucial to astute asset management and can be highly volatile and unpredictable as has been the case these past few weeks. This is exactly where the power of our AI models in our Weekly Power Trader advisory service becomes so valuable in identifying those ETFs and stocks with which to trade.
TRADING LANDSCAPE
The $SPY is testing short-term support at $463. The value/reflationary stocks traded flat to higher heading into the weekend, closing near the all-time high. The technology stocks closed in the green, with semiconductors back in favor.
The $DXY is short-term overbought, briefly broke through $95 level and closed right above the key overhead resistance level, but can remain overbought on the notion the Fed will have to taper and tighten sooner than stated. The $TLT was flat for the week after getting hit hard on Thursday. The VIX, traded lower, $18.
The $SPY short-term support level is at $463 followed by $452. The SPY overhead resistance is at $470. Short-term, the market is overbought and volatility can persist for the next couple of weeks.
The earnings season continues with (HD, WMT) scheduled to announce their earnings next week. The retail sector has been trading very well of late.
I would consider rebalancing the portfolio at this time, raising cash, and having an overall bullish portfolio.
If you are trading options consider selling premium with December and January expiration dates.
"BUY" signal based on the Aggressive Power Trader Portfolio for Monday is at $460 level using SPY and the "SELL" signal is at $467 for short-term traders.
Based on our models, the market (SPY) will trade in the range between $445 and $480 for the next 2-4 weeks.
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.
What makes this new service so special is that 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 86% 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 color 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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New Inflation Beating Trades
My trading algorithms helped me identify winning trade after winning trade.
From January 1, 2020, to today (November 12, 2021) the total return on all of my cumulative trades is an astounding 1561% on risk during the pandemic**.
(During the same period, the S&P portfolio would have only increased by 47%! )
Are you ready to join me as I trade with my own money during these inflationary times? My super AI program is set, and ready to rock and roll.
Click here to watch me trade!
To great returns,
Vlad Karpel
Yellow Tunnel Founder
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SECTOR SPOTLIGHT
For those making travel plans over the holidays, it’s pretty eye-opening to see how fast prices of airline tickets are rising just in the past two weeks. Flights are getting quickly booked up as consumers are bent on being with family and going to popular destinations after mostly being idled this time last year from pandemic restrictions that scuttled plans for hundreds of millions of global travelers.
When looking at the airline industry both domestically and internationally, the U.S. Commercial flight carriers are currently conducting about 5,670 passenger flights daily. Roughly 100,000 flights take off and land every day all over the globe. Airlines spent the past year burning cash, levering up with debt, and issuing stock just to survive to get to this point of beginning to recover financially.
With jet fuel prices and the rehiring of tens of thousands of airline employees at higher wages, the cost of running airlines has materially increased, which gets passed on to customers immediately. It’s one of those businesses that can make rapid price adjustments to curtail cost pressures and charge more because demand is sky high – pun intended. The airports I’ve been through recently are packed to the gills and so are the planes, nary an empty seat with most flights oversold.
The bullish headline from Pfizer, last week about a new pill that treats Covid-19 symptoms to where the risk of hospitalization is lowered by 89%, was huge news for the airline industry, putting a strong bid under the U.S. Global Jets ETF (JETS) on a huge spike in trading volume. It is an excellent way to trade the airline sector when there is a history of event risk with airlines for a number of reasons, thereby eliminating single stock risk while not sacrificing share price performance.
Shares of JETS briefly cleared their 200-day moving average before some minor selling pressure showed up following news of a spike in Covid infections in Germany where only 67% of the population is vaccinated.
While Germany is a lovely country for most of the year, it is not a wintertime vacation destination of choice for the majority of air travelers. So, while the news is not a good development, it’s not going to change the calculus for what will be the airline industry operating at pre-pandemic levels for the first time in almost two years.
Our AI-driven Forecast Toolbox has a short-term price target of $26.92, implying a move of 12.7% higher where a lot of trading profits can be booked on the way up. Check out the bottom third of this table where our algorithms can generate precise daily predicted price points for the next 10 trading days. Shares of JETS are in the midst of a brief period of consolidation, and traders will want to pay close attention to when we put this hot ETF to work at the time our AI indicators flash a buy signal.