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.
This week, the market saw a nice rebound supported by positive economic reports as well as the latest minutes from the Federal Open Market Committee meeting, which appeared eager to support the economy as best it could. Having just raised interest rates by 75 basis points, the Fed discussed another such rate hike in the upcoming July meeting, as well as the possibility of a 50-point hike in the September meeting. This, in turn, shifted market focus to Friday's major labor reports which included the unemployment rate, average hourly earnings, and labor force for the month of June.
Friday's June job market data showed employment has continued to expand at a strong rate, exceeding expectations and forecasts. With 250,000 new jobs expected in the month of June, the newest report showed a total of 372,000 jobs added. Weekly unemployment ticked up on Thursday, however, the monthly data was mostly unchanged. These positive results supported U.S. markets as all three major U.S. indices booked multi-day streaks and finished the week in the green.
With unemployment near a 50-year low and the jobs market showing robust strength, market sentiment in the next few weeks will depend on the upcoming Q2 corporate earnings results. Next week, major banks, retailers, and airlines will headline earnings reports. Also dictating market direction will be the latest CPI data and Fed Beige Book, both scheduled for Wednesday the 13th.
Another key market indicator is the long-term U.S. bond yields. After turning slightly lower last week, the 2-year, the 10-year, and the 30-year note all turned higher this week with yields above 3%. Inflation remains at the forefront of investors' minds and most likely combatting it will take time; which raises the prospect of stagflation setting in and causing a recession that is large in some areas.
To this point, I can’t emphasize how vital it is for blog readers and members of the Yellow Tunnel community to participate in our Live Trading Room and see how I am navigating us in and out of select trades. It’s FREE for all.
At Market open every Monday and Wednesday I highlight my best strategies and 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 control over risk with each trade.
CURRENT TRADING LANDSCAPE
As of Friday, the 5-day chart shows the $SPY was trading 3% higher, near $388, and above the key long-term support – $380. The technology sector ($QQQ) also saw a weekly boom, up 5.3% over the last five trading sessions, at $293, impressively above its 50 DMA.
The $DXY traded lower on Friday, near the $107 level, but still managed a positive week. The $TLT also traded lower on Friday, near $112 level, and facing the key long-term resistance.
As previously mentioned, the ten-year yield closed higher at 3.09%, below the key short-term support - of 3.20%, while the 30-year note stood at 3.27%. The $VIX, having traded higher most of the week, retreated on Friday toward the $25 level.
Taking a closer look at the statistics, I'd be a seller into the rally and have a NEUTRAL portfolio right now. The market is presently oversold and in the process of bottoming.
The "BUY" signal based on the Aggressive Power Trader Portfolio is at the $380 and then $362 level using SPY and the "SELL" signal is at $396 and then $409.
If you are trading options consider selling premium with November and December expiration dates.
On the upside, our Stock Forecast Toolbox forecasts an upward trend in the coming few sessions, with a range of $392 to $384 as seen above. Similarly, the 6-month forecast, shown below, depicts a rising trend that is accelerating quickly in the near term while tapering off afterward. The 6-month support and resistance levels offer great insight into where we will look to make our next move in the market.
NEW EARNINGS 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.
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 we 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.