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.
Leading up to this week, the market was riding on a wave of good news that included a strong earnings season, a breakthrough Covid pill from Pfizer, the passage of the infrastructure bill and a dovish taper policy initiated by the Fed. True to form, traders and investors pushed the major indexes to fresh highs, and then the headwind of a spike in new Covid cases in Europe capped the rally with all but technology and retail sectors undergoing profit-taking and broad selling pressure.
New concerns about future growth are creeping back into market sentiment after Austria announced a national lockdown from Covid with the possibility that Germany may do the same. The news is fueling buying of Treasuries and technology/growth stocks and the selling of reflation and reopening stocks. The trading landscape has the “here we go again” feel to it re Covid, so traders need to be responsive to his sudden rotation.
Timing rallies and pull backs is crucial to astute asset management and can be highly volatile and unpredictable as has been the case these past few weeks. This is exactly where the power of our AI models in our advisory services become so valuable in identifying those ETFs and stocks with which to trade.
The $SPY traded higher today and settled right at the all-time high, $470. The value/reflationary stocks traded lower and down another 0.4%. The technology stocks traded higher, up 1.0%. The $DXY had a small pull back, broke through $96 level and closed right at the key overhead resistance level. The $TLT traded higher and settled right above 50-day moving average.
The $SPY short-term support level is at $463 followed by $452. The SPY overhead resistance is at $470. Short-term, the market is overbought and volatility can persist for the next couple of weeks. I expect market to pull back further in the next couple of weeks.
I would consider rebalancing the portfolio at this time, raising cash and having an overall bullish portfolio.
If you are trading options, consider selling premium with January and February expiration dates.
"BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at $466 level using SPY and "SELL" signal is at $473 for short-term traders.
Based on our models, the market (SPY) will trade in the range between $445 and $480 for the next 2-4 weeks.
NEW EARNINGS DYNAMIC 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.
What makes this new service so special is that 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 86% accuracy in my live trading since inception. Sometimes we hold position 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 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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When the market takes on its Covid posture, it basically rewards big cap tech, staples, healthcare and penalizes just about everything else. This isn’t the first rodeo for how the market trades when fears of another surge in pandemic conditions permeates trader sentiment. To this point, sometimes is pays best just to buy the big cap technology ETFs that are on the receiving end of rapid fund flows trying to overweight in tech.
In this case, it’s no wonder shares of the Technology Select Sector SPDR ETF (XLK) are trading at a new all-time high. Aside from QQQ, the XLK is the go-to ETF for going long the basket of the best big-cap tech stocks. The top ten holdings in XLK make up about 67% of assets, making this a highly concentrated ETF.
Even with the big corrections in PayPal Inc. (PYPL), Visa Inc. (V), Intel Corp. and (INTC), the big weightings in Microsoft Corp. (MSFT), Apple Inc. (AAPL), Adobe Inc. (ADBE) and Nvidia Inc. (NVDA) are doing the heavy lifting as shares of XLK appreciate on the back of these tech behemoths.
Shares of XLK are moving up and the to right with bullish price momentum in full control of the upward move.
TRADE OF THE WEEK
One of the more controversial big cap stocks being traded is Meta Platforms Inc. (FB), formerly Facebook Inc. that just underwent a recent name change. The company has been the subject of social and political pressure over control of biased content and opening itself up to possible government oversight at some point. However, these allegations and actions usually end up in some sort of a regulatory fine.
What is at the heart of the new name is how the company is targeting what is known today as the “metaverse” Wikipedia defines it as follows:
“The metaverse (a portmanteau of "meta-" and "universe") is a hypothesized iteration of the internet, supporting persistent online 3-D virtual environments through conventional personal computing, as well as virtual and augmented reality headsets. Metaverses, in some limited form, are already present on platforms like VRChat or video games like Second Life.”
Wikipedia explains further applications are underway :
“Current metaverse ambitions are centered on addressing technological limitations with modern virtual and augmented reality devices, as well as expanding the use of metaverse spaces to business, education, and retail applications. Numerous entertainment and social media companies have invested in metaverse-related research and development.”
So, there you go. The metaverse explained in lay terms that traders can wrap their heads around. Meta Platforms is leading this new field of communication and banking a great deal of the company on its future to further its leading position in social online and virtual media advertising, which drives revenue and profit growth.
From the chart above, shares of FB plumbed a reaction low at the end of October when the company was under some heavy Congressional scrutiny. Subsequent promises to be more transparent and compliant with FCC regulations has started to lift the stock off its 200-day moving average and has now cleared both its 50-day and 20-day moving averages, setting up for further upside price action.
Applying our Forecast Toolbox to FB shares, we get an excellent Model Grade “B” rating with a 6-Month Predicted Resistance price target of $422, making for a bullish trading proposition from its current price of $351 and a great trajectory for traders to take full advantage of in the days and weeks ahead.
This is what our precision AI platform does for our members. It identifies, clarifies and verifies high-quality trades like a clear and powerful uptrend in stocks like FB. By being a member of any one of our services, it’s these kinds of opportunities that our proprietary algorithms provide our members to look forward to every day, where they can put their risk capital to work on both long and short positions.
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 for 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 our services, we tie our Tradespoon Live Trading Room to manage the parameters of every trade. 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 my AI-driven system is that it is 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 a standpoint of a Winning Trades Percentage, Average Return Per Trade and Net Gain.
Considering the choppy 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 don’t trade without checking with market-proven AI tools.
The consistent performance of our services is just incredible. My historical performance is made possible by being right on 86.18% of all trades that I made with an average profit of 35.52% per trade on my 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 my numbers and results speak for themselves. The power of AI is truly making a material difference in my win ratio.
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 even that they need to be viewed at a later time.
Traders seeking the most-timely directional trading strategies where historically over 86% of all 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, proprietary platform, that can help you make 2021 the best year on record for your trading portfolio.