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.
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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.
As noted above, a couple catalysts that could trigger the second wave of selling would be a rally in the dollar that is very oversold at present. Looking at the Invesco DB U.S. Dollar Index Bullish Fund ETF (UUP), our proprietary AI-driven Seasonal Chart is flashing a “Higher” signal for the next 20 and 30-day periods.
Another downside catalyst would be a string of economic data that reveals further inflationary pressures at work, where bond yields move higher and stocks move lower in reaction. The chart of the 10-year Treasury Note argues well that the next move for its yield is higher – probably to the 1.80%-2.00% range over the intermediate term.
Lastly, the implosion of cryptocurrencies has shaken the confidence of millions of traders and investors that are too heavy into Bitcoin, Ethereum and the more speculative digital coins. China has basically outlawed Bitcoin transactions as of this week, sending a shock wave through the sector. And this loss of confidence is spilling over into the high P/E stocks where there is abundant technical damage.
When the most recent wave of selling hit the market earlier this month, the CBOE Volatility Index (VIX) spiked from 16.50 to 29.00 in reaction before settling back down to the low 20.00 level per the chart below. This kind of radical shifting of trader sentiment usually invites one or two more bouts of a spike in volatility after the initial jump, and my work suggests we’ll see a second selling wave that sets up the VIX to revisit the 29 level and maybe higher if the recent lows for SPY are taken out.
At Weekly Power Trader, we apply our custom proprietary AI algorithms to every trade, giving us a serious edge on how and when to trade stocks and ETFs. Identifying how best to play the volatility trade is what creates opportunity in the next week or two. The market doesn’t have to completely break down in order to profit from. It just needs to trade in a wider range or take SPY down more than 5%. Both scenarios are probable as is being predicted by our AI models.
TRADE OF THE WEEK
One timely trade is being long the iPath S&P 500 Short Term Futures ETN (VXX) that is highly correlated to the VIX. Shares of VXX traded as high as $50 on May 12 and have pulled back to $39 over the past week as market volatility settled down. But if and when the next wave of selling materializes, VXX should challenge the recent high and maybe trade higher.
Lastly, the implosion of cryptocurrencies has shaken the confidence of millions of traders and investors that are too heavy into Bitcoin, Ethereum and the more speculative digital coins. China has basically outlawed Bitcoin transactions as of this week, sending a shock wave though the sector. And this loss of confidence is spilling over into the high P/E stocks where there is abundant technical damage.
When we apply our AI-driven Seasonal Chart to VXX, we get a fairly neutral “C” Model Grade rating with a near-term resistance level of $44, or roughly 10% higher than where it was trading Friday. But these probability data can spike if the market turns lower early next week, as I suspect is the case.
This is what our precision AI platform does for our members. It identifies, clarifies and verifies high-quality trades like VXX. By being a member of Weekly Power Trader, it’s these kinds of opportunities that our tailor algorithms provide our members to look forward to every day they put their risk capital to work on both long and short positions.
Our Weekly Power Trader advisory service takes positions in only blue-chip stocks and ETFs that are green-lighted by my proprietary AI tools, and when confirmed, are added to the portfolio with my investment capital invested as well.
Trading Thoughts: 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 and allocate no more than 5% of trading capital to any single trade.
I allocate less than 5% of my portfolio if I hold a position overnight. On average, less than 1% of the portfolio should be at risk if you hold a position less than one day. I personally look to enter a position at the predicted LOW (BUY) price or yesterday's close price. For Weekly Power Trader, my stop loss for stocks is 2% and my target gain is 2%. I target 75% accuracy using these signals.
Through the Weekly Power Trader service, we tie our Tradespoon Live Trading Room to manage the parameters of every trade. And we update our closed positions daily. The two platforms work 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 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 a standpoint of a Winning Trades Percentage, Average Return Per Trade and Net Gain.
The consistent performance of our services is just incredible. Our 2021 YTD stellar performance is made possible by being right on 86.09% of all trades with an average profit of 35.54% per trade. To my knowledge, my 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.
Once you’ve become a member of any of our service – Weekly Power Trader, Aggressive Power Trader or Dynamic Power Trader, 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 over 86% of all my trades are profitable should take action and come alongside the Yellow Tunne l community and make Weekly Power Trader, Aggressive Power Trader or Dynamic Power Trader your go-to AI trading platform for no-excuses performance.
Our AI platform crunches all the data, generating a constant stream of trade options with the highest probability of generating incredibly profitable returns available to the beginning, retail and professional traders anywhere in the marketplace today.
Go to our website at www.yellowtunnel.com and make one of our Trading service your default trading system where the AI that powers my all-world, always thinking platform and make 2021 the best year on record for your trading portfolio.