Cybersecurity To Soar: HACK
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 August comes to an end and the beginning of more interest rate hikes (but more on this later) I am welcoming all the changes that come with the changing of the seasons: our kids have gone back to school, some even to college, our backyard barbecues are turning into indoor dinners, and pool days have become movie nights. This past week, my wife and I met with a group of our friends at a downtown eatery for a unique experience I am looking forward to doing again.
Near the Chicago meat-packing district, a french restaurant hosts a do-it-yourself night for foodies and amateur cooks alike. The eight of us, composed of four couples, competed against each other in a Top-Chef-style competition. Getting to work in a professional restaurant kitchen, each couple was given a few base ingredients we all had to use. The French chef hosting the event walked around our stations as we created our creations and provided some feedback, while also holding back as he would be the one judging our dishes.
My wife and I sprung for a familiar Ukrainian favorite and made Filet Mignon with roasted veggies. For the preparation, we started with a traditional home-cooked recipe, frying onions, potatoes, and peppers. In a separate pan, we quickly seared the prime slice of beef to give it a nice outer char and grill-like appearance. Making sure the inside was still the right temperature, we finished off the meat, as well as veggies, in the oven for a flavorful roast that crisped our veggies while finishing our meat. We even snuck in our secret ingredient and cooked the Filet in truffle oil.
Our dish was beautiful, and tasted amazing! In the end, we were able to try all the dishes in what will certainly go down as one of the most unique dining experiences we've ever had. Unfortunately, we got second place. The chef awarded us the silver, as well as some wonderful compliments, but in the end, gave the gold to the salmon our friends made. Perfectly cooked, I could not argue with the chef's decision but would still put my wife and I's dish against anybody else's.
And that's something I was able to take away from the experience. Competition is a healthy part of life. Even when competing against friends or something as trivial as cooking, competition can fuel ambition, drive creation, and build a sense of community. There we were: eight amateur cooks stumbling around a Michelin-level kitchen doing our best to win an arbitrary goal and primarily have fun. Both goals were accomplished and we grew as a group of friends.
Returning to my trading desk the following week, I brought a rejuvenated spirit of competition to my market outlook and daily trades. All eyes this past week were looking ahead to Friday's Jackson Hole Economic Symposium which would feature comments from Fed Chair Jerome Powell. When the comments arrived, the market sharply sold off as additional interest rate hikes were not only signaled but reiterated. The Fed will move to combat inflation until it reaches its goal of 2%. This was feared by the public as it could slow the economy and sent U.S. markets into its latest recession.
The week also included some key economic reports but primarily the market waited for Powell's comments to shape the next move in the market. This is something we addressed in my latest roundtable webinar, hosted every Thursday on YellowTunnel.
Trying to keep up with the market by yourself 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:
How To Trade a Bear Market Strategy Roundtable
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
This week, markets were pulled in both directions before turning sharply lower following Fed Chair Powell’s comments at the Jackson Hole Economic Symposium. To open the week, all three major U.S. indices booked back-to-back losing sessions, then saw markets turn higher on Wednesday and Thursday. Anticipation for Friday's comments from Powell dominated the week while revised GDP data and PCE reports were also impactful.
The latest news from D.C. saw President Biden’s student loan forgiveness initiative, which will erase $10,000-$20,000 in debt per student, announced this week. Following this announcement, the dollar hit a 20-year high, with the $DXY above $108.
Most likely, concerns about a hawkish stance from the Federal Reserve weighed on equities this week ahead of the annual Jackson Hole Economic Symposium. Concerns were rightfully enacted as U.S. markets saw significant drops on Friday after Powell's comments went wide.
Jerome Powell, the chair of the Federal Reserve, vowed that the central bank would continue its battle against inflation to completion, or "until the job is done" during the latest Jackson Hole Economic Symposium. To lower inflation, Powell said, it'll come at the cost of some fiscal pain for everyday Americans and businesses. This sent all three major U.S. indices significantly lower.
The central bank's main goal is to bring inflation down to 2% and a .75 basis point rate hike is likely to come were key takeaways for investors reviewing the Fed Chair's speech. Powell's comments met expectations that the Fed would continue to try to control inflation even if it caused short-term economic problems for American households.
Another major contributor to the market direction this week was Friday's PCE data. The PCE index increased 0.1% on a one-month basis, but decelerated by a more than anticipated amount to 4.5% year over year (from 4.8%), from 4.7%. In July, the key index dropped 0.1% and from 6.8% to 6.% annually, marking it the first July drop in nearly two years.
U.S. consumers' personal incomes increased by 0.2% in July, but their spending only rose by 0.1%, which was below expectations for the month. Meanwhile, the deficit for U.S.-imported goods decreased by 9.7%. Lastly, inventories were on the move higher the report showed.
As of Friday, the 5-day chart shows the $SPY was trading 3.38% lower, near the $405 range. The S&P 500 significantly sold off on Friday, alongside all major U.S. indices. Oil moved impressively and gold ticked lower.
The $DXY continues to steadily rise, up 0.34% on Friday and trading near the $108.84 level. $TLT prices moved higher throughout the week and continued to do so on Friday, finishing near the $113.27 mark.
As I expected the short-term rally came to an end, as we've already seen the market turn lower to open and close this week, and the bear market will likely resume its downward momentum in the September-October time frame. Leading up to this week, the market was extremely overbought and I believe the market pullback has started.
This notion is once again supported by the continued rally the dollar has been experiencing. Rebounding from its previous pullback, the DXY is nearing a multi-month high and has mostly seen positive momentum.
PMI data this week was worse than expected while PCE data provided some mixed signals. In July, core CPI, a key gauge of U.S. inflation, decreased by 0.1%--the first drop in more than two years. This provides Americans with some financial respite from the continually rising cost of living expenses while the drop was likely caused by falling gas prices.
The PCE index is regarded as the most accurate measure of price increases by the Federal Reserve, a key report in determining Fed action. While the PCE report skewed expectations, Fed Chair Powell's comments at the Jackson Hole symposium further added to the notion another recession could ensue. The Fed will remain active in combating inflation and rate hikes will continue to be featured in upcoming Federal Open Market Committee meetings.
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 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 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.
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(A portion of Yellow Tunnel sales will go to directly help the Ukrainian people)
Mega-cap tech symbols are key indicators of what the rest of the market will do. Recently, symbols like AAPL began to show weakness which can and has easily impacted SPY and QQQ performance. For a few weeks, I've been stating the market has been top building and the sell-off could resume sooner than later. The time appears to be upon us and if I were to trade through this volatility successfully, there is one sector I am looking to lead off with, in what is likely the restart of the bear market.
$HACK, or ETFMG Prime Cyber Security ETF, trades on the Nasdaq, with a primary focus on tracking cybersecurity-based symbols. The ETF oversees $1.65 billion in net assets and sold off on Friday, down 2.17%. At $49.06, $HACK is looking like a great opportunity with volatility likely to resume.