VLAD’S #1 AND #2 BIOTECH TRADES
Hi everyone. Vlad Karpel here for Yellow Tunnel, an aggressive short-term trading service dedicated to all classes of traders seeking to up their game by leveraging the most cutting-edge AI platform available to retail and professional traders anywhere.
Every week my team brings to our audience of traders ongoing education, coaching and trading strategies to not just heighten our collective knowledge, instincts and awareness, but to hone the skills necessary to generate real wealth to our trading portfolios and create a truly rewarding personal experience for all our members.
NEW OPTION FEATURE FOR PAID SUBSCRIBERS
We recently launched our new Option Portfolio for paid subscribers to Aggressive Power Trader. This expansion of our service brings a major offering of quick-hit option strategies to our audience that thrive on trading options. We offer specific option trades of what our AI tools generate. All traders need to do is execute per the parameters set forth in the table of instructions.
CURRENT TRADING LANDSCAPE
I walked into CVS today to buy soap and forgot my face mask at home. Illinois requires anyone entering a public place to wear a face covering. I was about to turn around and go home but was told that it's not a problem at all, I could buy a face mask. Wow, I thought, they finally got face masks in? Well, not so fast. CVS is now selling prepackaged, individually sealed, disposable face masks. The ones you could get at any hospital or doctor's office free of charge. The ones that use to cost $12.99 for a pack of 50.
The newly repackaged masks now cost $1.99 each. Are you kidding me? A disposable mask, that does absolutely nothing to protect me or others from this or any other virus costs $1.99? Basically, it now costs me $1.99 to enter CVS. I stopped to consider this. I needed a soap, the cost of which is about the same as was my cost to buy it. I get it, it's all about making the most out of the situation and someone is really banking on these masks.
The market was able to reverse the earlier losses and closed in the positive territory Thursday. All sectors rallied and were able to hold on to major support levels. Financials and Homebuilders (XLF and XHB) were able to stage an impressive rebound. The market can potentially retest $270 level in the next two weeks. The next few trading sessions will be important, as the bulls' conviction will be tested for the first time since March sell-off.
I expect the market volatility and the three percent daily market moves to persist. At this point, I believe we have set the bottom (market can overshoot support and resistance levels especially when VIX is elevated). I believe the worst part of the sell-off is behind us. Please monitor VIX level as current levels are above the historical average. My strategy is to buy 5-10% market corrections.
Based on our models, the market (SPY) will trade in the range between $270 and $310 for the next 4 weeks.
Recent price action has clearly displayed that the information technology and healthcare sectors are where bullish fund flows are greatest. Within each broad sector are subsectors that can spotlight where pockets of unique strength lie. One of them to exhibit such behavior recently is the biotech sector, where the chase to develop a vaccine for COVID-19 has the sector all a buzz.
With so many companies hot after a therapeutic breakthrough among other major advancements in diseases like Alzheimer’s, Parkinson’s, cardiovascular and cancer therapies and a range of other disorders and ailments, biotech stocks are in focus. The SPDR S&P Biotech ETF (XBI) is the go-to ETF for casting a net over the group where the managers of the ETF are actively positioning the best stocks as top holdings.
From the most recent data, the top 10 holdings in XBI make up 23.55% of total assets with the hottest names making the list. There are 123 holdings that account for the $5.17 billion in total assets, making for a highly liquid security with a liquid options chain to trade as well.
The one-year chart of XBI shows a powerful uptrend in a place where further upside over the near-term looks promising. The shares are volatile and provide for an excellent trading vehicle if executed properly.
Applying my proprietary algorithms to XBI, our AI-powered Seasonal Chart shows that XBI is due for a pause during the next 20 days and then set to resume its torrid rally over the next 30, 40 and 50-day periods. It’s a solid bullish trend for aggressive traders to take full advantage of once the short-term overbought condition has been resolved. I’ll be looking to trade this sector for those that want to trade on our signals within our Aggressive Power Trader advisory service.
TRADE OF THE WEEK
A big beneficiary of the current COVID-19 pandemic is Moderna Inc. (MRNA), a clinical-stage biotechnology company, develops therapeutics and vaccines based on messenger RNA for the treatment of infectious diseases, immuno-oncology, rare diseases, and cardiovascular diseases.
As of February 15, 2019, the company had 11 programs in clinical trials and a total of 20 development candidates in six modalities comprising prophylactic vaccines, cancer vaccines, intratumoral immuno-oncology, localized regenerative therapeutics, systemic secreted therapeutics, and systemic intracellular therapeutics.
The company is aggressively pursuing a vaccine for COVID-19 and is one of a handful of companies in the lead in terms of progressing through the approval process. As expected, the FDA has granted Fast Track Status for Moderna's mRNA-1273, its mRNA vaccine candidate against SARS-CoV-2.
A Phase 2 study is next up. It will assess the safety, reactogenicity (adverse events) and immunogenicity of two vaccinations given 28 days apart in 600 healthy volunteers. If all goes according to plan, a Phase 3 trial will launch in early summer.
Fast Track status provides for more frequent interaction with the FDA review team and a rolling review of the marketing application.
The stock is moving aggressively higher in the past week on the news of its COVID-19 vaccine making strides at the FDA. At its current price of $66, the stock might seem overbought but has strong underlying buying pressure. Our AI-driven Stock Forecast Toolbox shows the potential for Modena shares to trade up to $98 resistance.
Traders looking to get involved with Moderna by way of trading the stock or options should be on the lookout for when I add MRNA to our watch list of potential trades. This is the kind of stock with wide price swings that can either produce a string of profits or chop up a trader into pieces. Best to have a set of proven AI tools at your disposal to properly execute entry and exit points in hot stocks like Moderna.
In our primary trading service Aggressive Power Trader, I direct our subscribers through the “trade decision-making process” with the mindset of being in and out of trades within 24-48 hours with the objective of booking 30%-60% gains against the amount of capital at risk on each and every trade with 75% accuracy.
The major element of this service is that it provides tomorrow’s featured trades the night before so traders can analyze and work on how they might best want to participate. You get to examine stock candidates well ahead of when I’m going to execute my best ideas the next day. It’s my TOP STOCK watch list of trading candidates with the various parameters that I use to trade each trade with defined risk levels, entry points and projected exit prices.
Each day at 8:00 PM and 8:30 AM CST, we provide our Top Bullish and Bearish Stocks, each with an Entry Point and projected exit price. Our signals are meant to last 1-2 days. Below are actual recommendations with parameters found on our Aggressive Power Trader Watch List.
I’m only showing a few stocks and ETFs that made up our Thursday night Watch List, so, there are plenty of trading opportunities in stocks, and ETFs to put to work on a daily basis. There are typically 10-12 trading strategies to consider.
I also post details of our trading activity and updates on the Watch List at the bottom section of our daily blog. So, make sure to stay tuned in that service 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 enter a position at predicted LOW (BUY) price or yesterday's close price. My stop loss is 1% and my target gain is 1% of a stock price. I target 75% accuracy using these signals.
Through the Aggressive 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.
For those that have followed since inception, a $100,000 initial investment when backtested may have grown to over $1.7 million dollars. This fantastic performance is made possible by being right on every 3 out of 4 trades with an average profit of 24.33% per trade.
Once you’ve become a member of Aggressive 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 archived in the event that they need to be viewed at a later time.
Our special introductory offer of $17 for the first 30 days should be your first trade of the week ahead. Volatility is a beautiful thing if one knows how to harness it. The trading landscape is fraught with uncertainty. Every major company has pulled guidance for 2020 so that just opens the door for extreme moves. This is where the power of AI takes over to navigate where the most opportune trades are and where we shine!
Trading thoughts on our trading model:
Within our Aggressive Power Trader trading stock and options watch list, trades are recommended in our Tradespoon Live Trading Room the next day.
Aggressive Power Trader is purposed to deliver high-visibility sector strength where a cluster of leading stocks are identified, coinciding with what we call a “10-day prediction momentum trade”. When we recommend a stock, ETF, or related option strategy, our time horizon is same-day in-and-out and up to five days max, at which time in the majority of trades, would be closed out.add disclaimer