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.
Friday’s release of the April employment data showed a dramatic miss on the number of jobs created and those that were forecast. Nonfarm payrolls rose by 266K when Wall Street was looking for 1.1 million. The unemployment rate rose to 6.1% from 6.0%.
It’s being reported that the swath of government-sponsored unemployment benefits kept qualified workers from looking for employment, and that may well be the case, but in any event, it did little to sway the bond market as the 10-yr yield actually ticked higher because hourly wages rose 0.7% for the month whereas they were down -0.1% for March. Wage inflation is alive and well and once the benefits run or are curtailed, further upside pressure on payrolls will likely become evident.
Growth stocks are getting a much-needed oversold bounce, but many charts of the leading tech stocks that dominate the index weightings have suffered some significant technical damage. So, while there is some short-term relief on a one-off headline, the fundamental trading landscape is unchanged where value and reflation stocks will likely outperform growth stocks over the near and intermediate term.
CURRENT TRADING LANDSCAPE
Guess what I did today? I went through my mailbox and deleted over 15,000 messages and I feel incredible! And I am here to share with you two things. It was not easy at first, but I was able to sort through, say my peace, and let it go. No, you do not need every email sent to you in the past three years, just in case.
Passwords can be reset, names of Arizona restaurants can be googled, and your travel history is saved in five other databases, I promise. Let it go. I also learned that there is a way to do this efficiently and, semi quickly, in Gmail. It was an eye-opening experience, to say the least. How did I not know this?
And if you already knew how to do this, then why didn’t you share this information with the rest of the world and you no longer need to continue reading this. Here is what you do. Open the email you no longer need or want. On the upper right-hand side, you will see three dots, click on those.
In the drop-down menu, click on filter-message like this. And just like that, you have every email sent to you by that sender neatly stacked in front of you. Close the pop-up box. Press on the little empty box on the upper left-hand side and select all. If there are more than fifty messages from this annoying sender, a blue message will pop up asking you if you would like to select all the messages, click on that and then, let it go and click on the little garbage can icon.
Don’t think about it. Trust me, you do not need to save thousands of messages from Chase, Macy’s, or your father, aunt, uncle, brother, etc. And just like that, I decreased my email storage from 19,485 emails to 48! There is this Russian proverb that translates into something like this: live a century, learn a century, or if you prefer American proverbs, live and learn.
The $SPY continues to trade in the range between $410 and $420. Reflationary stocks led the market and growth stocks to continue to sell off. The $DXY is reaching oversold levels and started the bottoming process. The $TLT is trading in the uptrend. Short term the $SPY key support level is at $410.
I would consider raising cash at this point as the best part of the recent rally is behind us. Based on our models, the $SPY can pull back 10-15% 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 is at $413 level using SPY and "the SELL" signal is at $420 for short-term traders.
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 at 2% of the stock price.
I have averaged over 86% accuracy in my live trading since inception. Sometimes we hold positions 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 the 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.