Best Trade For Market Crash
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.
The bulls are doing their level best to quell the “sell in May and go away” fears that crept into trader sentiment as of May 10 when the Nasdaq sliced down through its 50-day moving average like a hot knife through butter. The fierce rotation out of growth and into the reflation stocks has been prevalent for the past two weeks, but big-cap tech-led by FAANG managed a strong two-day rally late this week to restore some confidence.
There was also some relief in soaring commodity prices like oil, lumber, copper and other hard and soft commodity prices tapered off their recent highs, dampening the growing fears about runaway inflation. No less than four Fed governors gave speeches on Friday to broach the topic of tighter fiscal policy in the months ahead of the data warrants such a discussion. This is a departure from the current “no tapering or rate hikes until 2022 stance the Fed has maintained year-to-date.
CURRENT TRADING LANDSCAPE
We celebrated my grandmother’s 95th birthday today. My grandmother, who lived through so much and who still tries to boss everyone around. It is truly a blessing to be able to spend time with my grandmother and to hear her complain about how none of us eat enough.
It was even a bigger blessing to see my grandmother surrounded by my kids. They ate as much as they could and talked to her about their life, college choices and friends. I love watching them spend time with her. I know they don’t appreciate it now, but one day they will realize how truly blessed they were to know their great-grandmother.
The $SPY staged an impressive rally and closed above the key support level at $410. VIX traded near the $20 level. The reflationary stocks underperformed and the technology stocks were able to continue the rebound from yesterday. The QQQ trading near the 50-day moving average. The $DXY is reaching oversold levels and due for a rebound. The $TLT starting to recover. Short term the $SPY key support level is at $403-410.
I would consider rebalancing the portfolio at this point to be more market neutral. I expect the second wave of the sell-off to restart as early as next week. Based on our models, the $SPY can pull back 10-15% from the all-time highs in the next 2-6 weeks. If you are trading options consider selling premium with September and October expiration dates. "BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at $409 level using SPY and "SELL" signal is at $417 for short term traders. Based on our models, the market (SPY) will trade in the range between $388 and $425 for the next 2-4 weeks.
NEW WEEKLY DYNAMIC POWER TRADER SERVICE
We recently launched our new Dynamic 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 order. 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.
Our Weekly Power Trader service continues to power up great trading profits. Each week on Sunday, 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.
Also, note that the Weekly Power Trader signals are meant to last for 5-10 days as long as the vector confirms the same direction as the original pick, for stocks we use a target gain of 2% and stop as 2% of the stock price.
Signals have averaged over 86% accuracy in my live trading since inception. Sometimes we hold position 2-5 days by using options (selling OTM BULLISH PUT spread) and targeting 1% target gain and 1% stop loss using stock price. The green color should be interpreted as a bullish signal and 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.
------------------------------
SECTOR SPOTLIGHT
As the market works through the current consolidation phase, my AI models are signaling that a second wave of selling is highly probable over the near term. As the dollar is set up for an oversold rally, it would pressure the most of the reflation stocks, primarily the deep cyclicals.