Trade Alert: Black Gold!
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.
Another week of mixed to a lower performance for the stock market has September living up to its reputation as the most difficult month of the year for the bulls. The same concerns and fears of last week have carried over to this week plus some new wrinkles that have triggered more volatility – namely higher taxes and higher bond yields.
Better-than-forecast retail sales and manufacturing data sent the yield on the 10-yr Treasury Note up to 1.38%. There is the nagging issue of inflation which is very elevated at the wholesale level and persistently upon the consumer level.
Crude prices topped $72/bbl this week, implying higher gasoline prices and natural gas prices rose above $5/mcf for the first time in seven years that makes for an expensive winter heating season. Wage inflation is also a sticking point where 11 million unfilled jobs are forcing hiring incentives and pay increases to attract talented workers at all levels of the workforce.
The question of whether another rotation out of growth and into value is not a matter of if, but when – and this is exactly where the power of our AI models in our Weekly Power Trader advisory service becomes so valuable.
TRADING LANDSCAPE
From a purely technical standpoint, the $SPY bounced off the 50-day moving average, $442, and settled below the prior breakout of $449. The value/reflationary stocks traded higher as did technology stocks following a six-day wave of selling.
The $DXY started to break down its multi-month bullish momentum, but the short-term is oversold. The next level of resistance is at $93. The $TLT bounced back above the 50-day moving average (bullish, medium-term for the market).
Based on the steep correction in the reflationary stocks, strong dollar, and overbought technology stocks, the market will continue the pullback in September. The $SPY short-term support level is at $442, followed by $438. The SPY overhead resistance is at $455. I expect the next stage of the pullback to continue in the next two weeks.
I would be a buyer of value stocks on pullbacks and sell technology stocks on rallies. I would consider rebalancing the portfolio at this point to be bullish. The second wave of selling will continue for the next 1-3 weeks. Market corrections are never a one-way trade.
"BUY" signal based on the Aggressive Power Trader Portfolio is at $442 level using SPY and the "SELL" signal is at $448 for short-term traders.
Based on our models, the $SPY can pull back 3-5% from the all-time highs in the next 1-3 weeks. If you are trading options consider selling premium with October and November expiration dates. Based on our models, the market (SPY) will trade in the range between $435 and $455 for the next 2-4 weeks.
NEW WEEKLY 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.
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 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.
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Dear Subscriber,
To be clear, I wasn’t excited to see the Delta variant extend the pandemic nor did I expect that a third vaccine booster shot to be recommended. Many, many lives have been negatively affected by the COVID-19 pandemic.
The world and the market are changing drastically, I am about to put my trading algorithm to the ultimate test.
You see, it’s easy to make money in a bull market - and we were in the middle or maybe near the end of a historic run.
I spent years building a sophisticated, proprietary trading algorithm that would be immune from overall market performance.
And here’s the best part: when you click here, you can join me for the next 30 days...
Wishing you and yours the very best,
Vlad Karpel
Chief Investment Officer and Founder
P.S. Click here, to join me for the next 30 days...
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SECTOR SPOTLIGHT
Of all the situations grabbing headlines, the upward prices of oil and natural gas are catching most traders off guard. These are not crowded trades and with Hurricane Ida disrupting some operations in the northeast coupled with supply disruptions in Europe and ports in Asia, there is a strong momentum of late for these two fossil fuels.
Traders are already speculating on harsh winter conditions for the U.S. and Europe, making for even higher prices going forward. At some point, OPEC and non-OPEC nations will commence higher output levels, but until then, the path of least resistance at present is higher.
The same is true for natural gas where the Biden administration and states like California have determined to cut back on the future development of natural gas deposits, so as to promote renewable energy sources. But as we saw last winter in Texas, this mindset backfired when record cold temperatures cripple wind power and a shortage of natural gas supplies forced power outages across the state.
The best way to play the energy sector as a whole is to trade the Energy Select Sector SPDR ETF (XLE) and the related options. XLE is a highly concentrated ETF, where the top ten holdings make up over 76% of total assets. What makes XLE so attractive is that stock picking in the sector carries a higher level of risk than some other sectors being they are commodity-related companies. 
From a technical standpoint, shares of XLE have successfully tested the 200-day moving average and are working up through the 20 and 50-day moving averages. The chart shows a very constructive base by which the shares should make their way back up to the previous highs. 
When we apply our AI-driven Forecast Toolbox to XLE, we get a “B” Model Grade rating and a Predicted Resistance price target of $68.03, implying a big upside of 43% for this ETF over the next several weeks. For traders wanted to receive our buy signal and related trades in XLE, make the decision today to become a new member of Dynamic Power Trader and don’t miss out on when we trade XLE.
TRADE OF THE WEEK
ExxonMobil Corp. (XOM) is the top holding within XLE, and for good reason. The company is the biggest U.S. energy company by market cap and so happens to be the second-largest natural gas producer in the world behind Russia’s Gazprom.
2021 revenues for XOM are forecast at $288 billion, up 56% over 2020 and earnings look to come in at $4.28 per share versus a loss of $0.33 per share in 2020. The company is clearly in a powerful sales and earnings cycle that sets up the stock for a major run higher into the fourth quarter.
When looking at the year-to-date chart, we see a similar pattern to that of XLE, which makes perfect sense being XOM is the most weighted. The stock hugged a 200-day moving average for the past month and is now beginning to lift off of this key level.
Aside from the bullish chart pattern, our AI platform is flashing a buy signal on the stock The Forecast Toolbox gives XOM an “A” Model Grade rating with a Predicted Resistance price target of $83.83, implying a move higher of 51%!
This is what our precision AI platform does for our members. It identifies, clarifies, and verifies high-quality trades like a clear and newfound uptrend in stocks like Caterpillar. 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.
Through our services, we tie our Tradespoon Live Trading Room to manage the parameters of every trade. And we update our closed positions daily. The two platforms 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.
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 market-proven AI tools.
The consistent performance of our services is just incredible. Our historical stellar performance is made possible by being right on 86.32% of all trades that we made with an average profit of 35.19% per trade on our 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 our numbers and results speak for themselves.
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 event 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 are profitable to come alongside the Yellow Tunnel community and make one of our services your go-to AI trading platform for no-excuses performance.
Our AI platform crunches and analyzes thousands of proprietary performance indicators to help identify the next big trades to 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 powers my all-world, proprietary platform, can help you make 2021 the best year on record for your trading portfolio.