Hi everyone and welcome to the Yellow Tunnel community, a family of trading services dedicated to all classes of traders seeking to elevate their trading skills, market awareness, and trading profits.
As expected, the Federal Reserve raised interest rates by 75 basis points on Wednesday. This, along with the guidance provided for additional super-sized hikes to come, sent U.S. markets lower to end the week. Overseas, an unexpected and unfortunate event unfolded as Russian President Vladimir Putin called for a partial military mobilization in addition to his ongoing invasion of Ukraine. The action, along with what could be perceived as threats to western nations in his comments, sparked fears of an escalating war that could see global ramifications.
With most news that comes across my desk, I tend to view things through a financial lens. This, however, is not something that is easily done when it comes to the ongoing war. As a native of Ukraine, it breaks my heart to see footage of the streets I called home lined with soldiers, tanks, and rubble. Places my parents and their parents grew up in, are now boarded by the red 'breaking news' ticker as horrendous footage shown on almost every news channel.
And while we are lucky enough to have most of our direct family living in the U.S. or away from the war, not all are. There are plenty of stories of families being torn by this senseless war as fathers stay home to defend their country while mothers take their children to safety outside of Ukraine. And you don't have to go far to find these heartbreaking stories.
This past month, one of my first employees at YellowTunnel, Alon, shared the story of his family's connection to the situation. Originally from Kyiv, Ukraine, Alon's parents moved to the U.S. by way of Israel to escape the harsh and often unfair conditions of the Soviet Union. Not all could leave, and as the Soviet Union fell, some chose to stay. This is exactly what happened to his family on his father's side; unfortunately, those harsh Soviet-induced conditions came to find his family again as Putin began his invasion of Ukraine this past year.
When it became clear the war would not be quickly or quietly resolved, many began to make their way out of the country. Men were ordered to stay and rightfully defend while elders, children, and women found safety abroad. Alon's grandparents felt they could not make the journey in their poor health and decided to stay while his aunt, a single mother to a 20-something whose travel agency business would serve little purpose mid-war, decided to leave. Encouraged by her parents, as well as her family in the U.S., Natalia applied for a temporary U.S. visa and after getting approved made the journey here.
Now, in her mid-40s she will be starting all over again- learning a new language, applying for a driver's license and finding a job. With Alon's family hosting her, they are all taking part in helping get her on her feet as she tries to develop a new life away from the war. All of that, while everywhere on the news and online there are reminders of the brutality happening back in her own home, where her parents still live in fear. This is just like thousands of stories that have all bubbled up due to this unjust war Putin enacted, so you can see why sometimes it's hard to separate business from personal with situations like these.
And even closer to home, actually, in my own home- I am currently hosting a family as well. Our long-time nanny has her daughter and granddaughter with her. The family from Ukraine had to separate as the daughter's husband stayed back and is currently in the army, defending his country. Beyond the trauma of separation, the family that crossed literal borders to find safety must now cross language and cultural borders just to take part in their newly-located lives. Acclimation is not easy, but it is something we are working to help them with.
Everyone is trying to do their part and help in the ways they can. Whether it's hosting or donating, there is a worldwide effort to support Ukraine during this horrendous time.
Furthermore, I've had the opportunity to take additional action with a great organization supporting families in Ukraine directly. Gate.org is a foundation where fundraising is held for specific families, allocating funds to multiple families currently living in Ukraine. I am on the board of directors for this great initiative and encourage everyone to check it out and donate if possible. The war in Ukraine is escalating and families are being negatively impacted and displaced daily, to learn more about this initiative to help families, please click the link below:
The geopolitical status quo is always changing, and so is the market. While I feel a personal connection to this situation and feel for the hundreds and thousands of others that are impacted by this, I understand the market moves on.
It's difficult predicting how the market might respond. The war in Ukraine, upcoming Fed meetings, COVID shutdowns in China are just a few of the headline-making, market-dictating variables that are out there ready to flip the market at any moment. Navigating through this, personal connection or not, is not an easy task. That is why trading communities are important and one of the main reasons why I formed YellowTunnel.
We discuss this, and plenty more, on a weekly basis during my YellowTunnel webinars. I go over my trading plan and market outlook on a weekly basis in my roundtable webinar, hosted every Thursday on YellowTunnel. Trying to keep up with the market by oneself can be overwhelming. That is why I encourage you to join a trading community where you may interact and analyze with others. I recommend checking out our latest Roundtable webinar in its entirety below:
With the unpredictable nature of the market and the uncertainty ahead of us, I can’t emphasize enough how vital it is for our readers and members of the Yellow Tunnel community to keep referring to our Live Trading Room so as to maintain a close tie of how our I and my AI platform is navigating us in and out of select trades. It’s FREE and I highly encourage everyone to sign up to the Live Trading Room and keep checking in throughout the trading day.
Every Monday and Wednesday, I highlight our best strategies and potential trading setups via the DISCORD server. It’s the future of bringing together a trading community’s total services, educational products, live chat venues, support, news, how-to tutorials, webinars, live-trading demonstrations, and tons of market analysis. It is incredibly interactive and full of crucial and timely information. Just go to:
I also want to emphasize to traders how vital a stop-loss discipline is to winning and being successful in an unforgiving market. We employ specific stop-loss instructions with every trade. The buy and sell programs controlled by high-frequency related algorithms can create great profits or cause sudden losses, so it is imperative to maintain an element of controlling risk with each trade.
CURRENT TRADING LANDSCAPE
American stocks continued to drop on Friday, with the S&P 500 index reaching the June 2022 low. This was caused by turbulence in the bond market, with the 10-year note hitting an over 10-year high, and a rapidly increasing dollar following Wednesday's interest rate hike from the Federal Reserve. The two-year yield also rocketed to nearly 4.2%, surpassing a level last seen in 2007.
The market shake-up began on Wednesday when the Federal Reserve announced a 75-basis-point boost in interest rates and its promise to combat inflation even if it risks an economic recession. The FOMC policy update also revealed that there will be another 1.25% in rate hikes by the end of this year, which would bring the benchmark rates up to 4.4% from 3.8%. The Fed has downgraded its growth projections, predicting the economy will expand at a sluggish 0.2% annual rate this year and 1.2% in 2022, far below the 5.7% gain in 2021. As the move to the range of 3% to 3.25% shook markets, major U.S. indices capped the week deep in the red and VIX has surged to the $31 level.
Also occurring late in the week, Costco and FedEx shares, kicking off an early batch of earnings data, tumbled after reports severely underwhelmed. With several factors pressuring the market this week, it appears the market has begun its next leg down. This produced an oversold market which I am keen to take advantage of in the upcoming weeks.
Currently, I am watching the overhead resistance levels in the SPY, which are at $390 and then $404. The $SPY support is at $360 and then $350. I expect the market to continue the current pullback in some form for the next 2-8 weeks.
The SPY sold off fiercely on Friday, trading near $365 after trading as high as $388 earlier in the week. Five-day results for the SPY showed a 2.29% decline, similar to that of the QQQ weekly performance which was -4.68%. The technology sector ($QQQ) was trading near $272 on Friday.
The $DXY traded impressively higher on Friday, near the $113 level after starting the week near the $109 level. Long-term treasury yields have also spiked this week with 2,10, and 30-year notes all hitting multi-year highs.
The short-term market is oversold and can stage a multiple week rally. I would be a seller into any further rallies and encourage subscribers not to chase the market at these levels.
Next week, earnings are due to pick up slightly with several retailers including Nike, Rite Aid, Bed Bath & Beyond, as well as Micron Technology. Additionally, we will see revised Q2 GDP data and August PCE reports. This will be key indicators of how the market will conduct itself for the next few weeks and I will be closely monitoring. There is potential for a relief rally to occur in the current oversold nature of the market as well one following midterm elections and near the holiday season, as they traditionally do.
NEW EARNINGS POWER TRADER SERVICE
I recently launched our new Earnings Power Trader service, which I am 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. Click here to learn more.
Signals have historically averaged over 85% accuracy in my live trading since inception. Sometimes I 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 Earnings 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 entered 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.
A 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 an OTM Put (strike less than 100) with an option BID price close to $0.5.
How I Banked an
84.87% Win Rate
During Market Chaos
The markets have been all over the place.
And with worldwide uncertainty, wars, and rampant inflation, volatility just keeps increasing.
Traders are being more cautious — not knowing what will
Me? I’ve made 1599 trades since the beginning of 2020 to
today… and 84.87% of them have made money.
While I’m not taking on unnecessary risks or being careless with my money, I’m still making the same trades I always have.
With the Fed behind us and earnings ahead, the market is primed for additional volatility. We remain in a bear market but there are windows in which rallies in an oversold market could bubble up, especially in one sector which tips them off mega-cap tech. Large tech companies give indications about future market performance, other sectors often follow suit and improve. Earnings season is coming up and I want to invest in this sector since it is showing good potential for profit according to my research and previous market patterns.
The Technology Select Sector SPDR Fund (XLK) is one of the most popular ETFs in the tech sector, and it's one of my go-to's in the field.The ETF sold off on Thursday and Friday following the FOMC news and booked a loss for the week. The fund is trading right above its 52-week low of $122 which offers plenty of room for the upside. Because an oversold market has the potential to lead to a rally, I will be paying close attention to tech stocks- and my artificial intelligence tools are showing that this may indeed be the case. See XLK Seasonal Chart below:
Looking at my Seasonal Chart, I am seeing a positive signal for XLK right out of the gate! The symbol is seeing mute forecast and accuracy percentages which show a symbol set to buck its latest trends. Last month, the annual seasonal prices, seen by the green line, swapped places with the current price, portrayed via the blue line. This is a trend that could send shares higher and the model is showing a "higher" forecasted price for the symbol in the next 20 and 30 day periods.
Using the Stock Forecast Toolbox, $XLK is signaling a continuous trend upward in its 10-day forecast. The symbol is trading below its 52-week and monthly highs and has potential for the upside:
Tech will offer us a good relief sector in this oversold market, but there is one symbol within the field I'll specifically be adding to my portfolio this week.
TRADE OF THE WEEK
I will be keeping an eye out for a chance to invest in Apple, Inc. (AAPL), as it plays a big role in the tech industry. Apple Inc. is one of the tech leaders that not only sets the tone for tech sentiment but also plays a role in dictating where U.S. markets are headed. With a market cap exceeding $2 trillion, this company can find success in even short-term periods of high market volatility- which is something I believe we will see more of in the near future.