Vlad's Alert: Another Major Bitcoin ETF Move
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.
It’s been a record-breaking month for the stock market with favorite heavyweight names leading the way higher, and not just from the tech sector. New highs in the likes of Home Depot Inc. (HD), UnitedHealth Group Inc. (UNH), Union Pacific Corp. (UNP), American Express Co. (AXP), Microsoft Corp. (MSFT), Nvidia Corp. (NVDA), and a whole host of other Wall Street favorites led a broad-based rally to a point where some consolidation is fully warranted.
With that said, there have been some high-profile blowups that are notable. Shares of IBM Corp. (IBM), Intel Corp. (INTC), Visa Inc. (V), and Facebook Inc. (FB) display how mixed and uneven the economic recovery has been for some of the best-managed companies in the world that are still coping with supply chain issues, labor shortages, commodity inflation, Covid-19 restrictions, and competing technologies.
With the narrative surrounding inflation keeping the caution flag up within the bond market, capital flows are rotating out of fixed income and into equities as a natural course of investors seeking to leverage the economic rebound, own an inflation hedge, and look more to dividend yields to support income as opposed to owning bonds. Blue-chip stocks that are inflation-sensitive and can compete on yield with investment-grade bonds are a primary target of capital flows seeking yield.
The Federal Open Market Committee meeting is set for November 3 where it is widely expected that the Fed will provide details of their tapering plans. The conventional thinking is that the roadmap will be one of reducing the $120 billion of asset purchases per month to $100 billion, then to $80 billion, $60 billion, etc. until they complete the tapering process by mid-2022. So far, the market is taking this plan in stride.
Stock selection is crucial during earnings season, which can be highly volatile and unpredictable – and 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.
What a difference a couple of weeks make. The technical outlook for the market has improved markedly in terms of breadth, fund flows, and the number of new highs. The $SPY staged a rebound and settled right above the recent all-time high, $458 heading into the weekend. The value/reflationary stocks are now starting to trade higher, up 0.9%, and closed above the recent break out ($VTV at $143). The technology stocks closed in the green, up 1.0%, and at the all-time high.
The $DXY is short-term overbought and briefly pierced through the key long-term support at $93.5 (break of this support will be bullish for the reflationary stocks). The $TLT had a strong rebound (lower yield), and settled above the 50-day moving average.
The $SPY short-term support level is at $450, followed by $445. The SPY overhead resistance is at $455/$460. The short-term, market is overbought and due for a shallow pullback in the next few sessions.
The earnings season continues through the next week at a brisk pace and then starts to wind down by mid-November.
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 next Monday is at $455 level using SPY and the "SELL" signal is at $462 for short-term traders.
Based on our models, the market (SPY) will trade in the range between $445 and $465 for the next 2-4 weeks.
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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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Bitcoin and other cryptocurrencies are being viewed as digital gold, preferred over gold bullion and other forms of inflation hedges. The ability to spend Bitcoin at hundreds of merchants globally exchange local currencies with the click of a mouse, and transfer money between people seamlessly is sweeping across major platforms and brokerages around the world.
The meteoric rise in the price of Bitcoin has left investors and traders fairly flatfooted because of the public resistance being voiced by central bankers, commercial bankers like JP Morgan CEO Jamie Dimon, and opponents arguing how cryptos finance the global drug trade, ransomware, human trafficking, and all manner of criminal activity on the dark web.
China’s ruling party and ministry of finance have completely outlawed the use of cryptocurrencies as a storehouse of wealth, trading, and currency transfer. It was thought that such a draconian set of measures would crush the value of Bitcoin, but that hasn’t been the case. Instead, Bitcoin has soared to new heights as fears of inflation have mounted in recent weeks, fueling demand over that of traditional gold. The fact that there is also a fixed amount of Bitcoin that can be mined, 21 million coins, has created a feverish supply/demand equation that is also bidding Bitcoin higher.
TRADE OF THE WEEK
Of the available methods by which to buy and trade Bitcoin, one security I find preferable is the Grayscale Bitcoin Trust (GBTC), a well-established and highly liquid ETF that tracks the price of Bitcoin with a relatively high level of correlation. GBTC has a market cap of $8.6 billion and trades on average 1.5 million shares per day.
From the chart below, shares of GBTC are pushing just up off its 20-day moving average and looking quite bullish.
Aside from the compelling chart pattern, our AI platform is flashing a buy signal on the stock. The Forecast Toolbox gives us a bullish price target of $76.36 over the intermediate term, implying an upside move of 56%. Hence, GBTC should make for an exciting trading vehicle for our purposes of profiting from Bitcoin in the next few months.