Bank on Best Solid Rock Trade

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.

There is a noticeable change in the market sentiment as to just how the rally has priced in a lot of good news and future expectations. After blowout quarterly results from Apple, Amazon, Alphabet and Facebook, traders are wondering what’s going to move the market higher now that the who’s who of companies have reported their numbers, the Fed has spoken and Congress is putting a bow on the latest stimulus package.

It’s a good question. August could be a long and hot month for those fully invested. The situation with China is growing worse and the election cycle is about to get very ugly, so to borrow a phrase from an old Wendy’s commercial – “where’s the beef?”


We recently launched our new Weekly Power Trader service that we at Yellow Tunnel are very excited about. 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 as 2% of the stock price.

Signals have averaged over 75% accuracy in my live trading since inception. Sometimes we hold position 2-5 days by using options (selling OTM BULLISH PUT spread) and targeting 1% target gain and 1% stop loss using stock price. Green color should be interpreted as a bullish signal and Red color as a bearish signal.


The U.S. Dollar continued the sell-off, and broke through the critical support level (extremely oversold level and can bounce shortly). Treasury prices continue to go higher (negative for equities) and gold rallied to all-time highs.

The next two weeks will be critical for the equity market. The homebuilders and materials stocks sold off toward the end of the session confirming potential market correction after the Fed meeting.   From a technical point of view, DXY can rebound, TLT can sell off, Gold can sell-off and banks can rally by the end of     this week or the next.

If the SPY can trade above $323 level this week, then the market will continue its march toward the 52-week high.  If the SPY continues to trade below $319 level this week, the SPY will trade in the range between $300 and $323 for the next few months. The key event this week will be the Fed meeting.

My opinion has not changed. The short-term bottom is at $300 and potentially can be retested most likely in August (put/call ratio is at the lowest point this year). SPY longer-term     overhead resistance is at $340 and can be retested in the next 2-4 weeks. At this point I do not think the market will break $300 level.

"BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at $321 level using SPY and "SELL" signal is at $327 for short term traders. 

I expect the market volatility and the two percent daily market moves to persist.  SPY top is set at $340 and market can potentially retest all-time     high level in the next 2-4 weeks.    The market     can overshoot support and resistance levels when VIX is elevated.   My strategy is to buy 5-10% market corrections.

Based on our models, the market (SPY) will trade in the range between $300 and $340 for the next 4 weeks. 



Bond yields have in my view bottomed over the short-term as the 10-yr Treasury yield has fallen to 5.4% and a level that I believe will be a floor. Financial stocks have retreated on this move lower and yet proprietary trading and lending activity are very robust at the biggest institutions. Therefore, I’m looking at trading the banking sector from the long side in the days and weeks ahead for what I see as good opportunity.


The Financial Select Sector SPDR (XLF) is an excellent way to trade the sector with Berkshire Hathaway Cl B (BRK.B), JP Morgan Chase & Co. (JPM) and Bank of America Corp. (BAC) as the top three holdings. These three stocks make up about 31% of total assets in the fund, so as these stocks go, so goes the direction of XLF.

A one-year chart of XLF shows a nice basing formation in the     $22 range where an upside move to $26 is in the cards. The chart shows a series of higher lows going back to March with the recent sideways price action providing for an attractive entry point.


I’ll be looking to utilize this bullish scenario for our Weekly Power Trader members with short-term trading strategies in the days ahead. This anticipated momentum for the financial stocks will provide several high-probability opportunities raises my confidence about where to direct fresh trading capital utilizing our signals within our Weekly Power Trader advisory service.





Of the top holdings within XLF, BlackRock Inc. (BLK) stands out as a stock that is set to shine in the near term. As the largest manager of ETFs in the world, the firm primarily provides its services to the institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities, sovereign wealth funds, corporations, official institutions, and banks. It also provides global risk management and advisory services.

The Federal Reserve is even a client of BlackRock, conducting its corporate bond purchases in the form of ETFs through the firm. In its July 17 second-quarter     release, BlackRock recorded EPS of $7.85 that beat estimates by $0.90 as revenue of $3.65B (+3.7% Y/Y) beat forecasts by $100M. Total assets under management (AUM) of $7.318T topped the $7.236T consensus and was up from $6.467T in Q1.

At its current price, the stock broke out to a new all-time high this month, clearing $570 on rising volume – touching $592 before giving back some of the earnings headline gains. Our Seasonal Chart is also flashing “higher” for the next 20, 20, 40 and 50 days. This is a powerful set of signals being sent from my AI-driven platform that tees up the stock for our trading purposes in the days ahead.

Our Weekly Power Trader advisory service takes positions in only blue-chip stocks and ETFs that are “green lighted” by my proprietary AI tools, and when confirmed, are added to the portfolio with my investment capital invested in each and every trade.

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 look to enter a position at 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 the Weekly 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 almost $1.7 million dollars. This stellar performance is made possible by being right on every 3 out of 4 trades with an average profit of 24.82% per trade. My AI platform delivers consistent rich profits that can be     life-changing     .

Once you’ve become a member to any of our service – Weekly Power Trader or 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 also archived in the event that they need to be viewed at a later time.

With volatility having entered the tech sector where there is a lot of hot money and now more than at any time this year is when the power of AI is, in my view, crucial to filtering what trades have the highest percentage chance of winning.

Go to our website at and make the Weekly Power Trader service your default trading system where the AI that powers my all-world, always thinking platform.