"Nvidia To Surge Again!”
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.
Traders enjoyed a strong relief rally this week into a triple options expiration Friday where the major averages were able to close up against overhead technical resistance that will be a big test for the markets next week. Hopes of a cease-fire or progress in brokerage one by China is supporting a more positive tone, but at this point, it is all political rhetoric as Russia continues to bomb Ukraine with no signs of letting up.
Commodity prices reversed higher late this week after a healthy correction, with WTI crude trading back above $103/bbl as of early Friday. Talk of further restricting Russian oil to world markets was the catalyst, and yet there is no evidence from China that they are willing to support sanctions. Soft commodities such as wheat, corn, and soybean prices were resuming their upside bias, exacerbating what is already hot inflation.
The Fed’s actions this week to raise the Fed Funds Rate by a quarter-point and guide to six rate hikes was hawkish, and an admission that they were behind the inflation curve that has proven more persistent and threatening to the economy than they had assumed. But the market was on board with the notion that the Fed was being proactive to rein in inflation with a known forward action plan to where the market embraced the policy plan and rallied thereafter.
CURRENT TRADING LANDSCAPE
The rally into Friday was as much mechanical as it was anything related to lower valuations that brought in buyers. There was widespread shorting by hedge funds and professional traders looking for the market to take out the February 24th low for the SPY of $411. When that level held and the Fed meeting adjourned, the shorts had to cover and the market was rewarded with a big oversold bounce.
The $SPY closed higher 1.2% on Thursday, at $441, right above the January downtrend line. The value/reflationary ($VTV) closed higher 1.2%, at $147, above the 50 DMA. The technology sector ($QQQ) closed higher 1.2%, at $345, above the January downtrend line.
The $DXY closed lower, near the $98, at the June 2020 high. The $TLT closed lower 0.7% and near the March 2021 lows. The ten-year yield closed higher 2.16%. The $VIX closed lower near the 25 levels.
The $SPY short-term support level is at $430 (key long-term support) followed by $420. The SPY overhead resistance is at $445 and then $460.
Assuming the geopolitical risks in Ukraine have reached the status quo, it is reasonable to assume that the $SPY February lows are set and the January downtrend will be reversed in the next one to two weeks.
I would be a buyer of the low beta stocks into the pullbacks and have a market BULLISH portfolio at this time.
I do not expect the $SPY to post new all-time highs in the first half of this year. There is a high probability that the $SPY main long-term support at $415 is now set. All eyes are on the geopolitical risk in Ukraine.
"BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at $431 level using SPY and the "SELL" signal is at $444 for short-term traders.
If you are trading options, consider selling premium with May and June expiration dates.
Based on our models, the market (SPY) will trade in the range between $415 and $470 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.
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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SECTOR SPOTLIGHT
My opening commentary regarding the geopolitical situation as it relates to the energy sector argues strongly that crude prices will remain elevated, with further risk of supply shocks quite possible. That and the fundamental supply/demand equation that was already skewed to higher prices before the invasion of Ukraine by Russia was firmly in place. This past week WTI crude traded up to $130/bbl in a panic spike and has since pulled back to close out Friday at just above $109/bbl.
Of the sectors trades really focus on when conditions improve is that of the semiconductor stocks. They have proven to be great trading assets over time, demonstrating strong performance as chips are essential to almost every industry and line of products made for business and consumers. Chips are in everything, and with the advancements in AI, IoT, 5G, robotics, industrial applications, smartphones, cloud computing, big data, gaming, and PC computing, there is no denying the vitality of this space and why it attracts so much attention.
Many traders prefer to work with the VanEck Semiconductor ETF (SMH) as the go-to trading vehicle. In doing so, it removes single stock risk without compromising volatility that traders want to take advantage of short-term moves that have decent price action in terms of the price range. The top 10 holdings make up just over 63% of total assets.
This trade for SMH sets up well as there is good confirmation from our AI-driven platform where the Seasonal Chart shows “Higher” probability readings for the next 30, 40, and 50-day periods following a short-term bout of consolidation – a very bullish development.
Following a big snapback rally this past week, our AI indicators will signal in the next week when we should buy into this trade on a forecasted minor pullback. This is where our AI tools are so crucial in determining precise entry and exit points.
TRADE OF THE WEEK
Holding the #2 spot in the SMH is Nvidia Corp. (NVDA), the leader in chips for AI, cloud-based computing, graphics computing for networks, and gaming. The company has enjoyed explosive revenue and earnings growth for the past several years and continues to widen its technological lead in the areas it specializes in.
Traders are highly fond of trading both NVDA stock and options. It’s a professional trader's favorite name, has a wide following by the analyst community, and is generally thought of as the best-of-breed chip company in the entire industry. 2022 sales are forecast to exceed $34 billion, with earnings to come in as high as $6 per share, representing 36% profit growth, according to the consensus of 38 analysts.
Shares of NVDA dipped below their 200 DMA during the recent selloff and have retaken this key level this past week while breaking the pattern of lower highs in this corrective phase – a sign of a truly bullish stock that should be bought on any dips.
When we apply our AI platform to NVDA, using the Seasonal Chart, we get a “Higher” probability reading for the next 20,30, and 40-day periods. So, while the larger chip and chip equipment sector is questionable for the next couple of weeks, our AI platform is very bullish on NVDA.
I’ll be looking to trade NVDA this week to trade it from the long side, given its amazing breakout that confirms the stock is beginning a new bullish uptrend.
We tie our Tradespoon Live Trading Room to help you manage the current inflationary wave. 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 should not trade without checking in with market-proven AI tools.
The consistent performance of our services is just incredible. Our historical stellar performance is made possible by being right on 85.26% 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.
For March, month-to-date, we’ve closed out 13 straight profitable trades, with emphasis on the energy sector for sure, with me realizing some fantastic profits. Without our AI tools, this kind of winning streak would simply not be possible.
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 my 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 power 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, keep praying for the people of Ukraine, and let’s create some meaningful wealth together in 2022.