Year-End Alert! Major Bitcoin Move
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.
The Santa Claus rally has officially begun. By definition, it includes the last five trading days of December and the first two trading days of January. How appropriate. It ends the same day as the Georgia Senate runoff election. Talk about putting a cherry on the sundae. Given the extreme rallies in recent IPOs, solar, fuel cell, cyber, EV, work-at-home, e-commerce and digital payments, there is some real froth in the market.
At the same time, there is some healthy rotation into the banks, industrials, materials, and re-opening sectors that is maintaining the bullish integrity to the rally. As long as the market has a chance to consolidate the sky-high P/E sectors while money flows into value sectors, any corrections will be minimized to just a few percentage points.
NEW WEEKLY POWER TRADER SERVICE
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.
CURRENT TRADING LANDSCAPE
The SPY trades along with its 20-day moving average with the $364 level as the key support level short term. Bank stocks rose up this week to bring new upside momentum. As long as the SPY is trading above the $364 level, the SPY will continue to make incremental gains and can reach the $375-$385 level by the end of this year.
The U.S. Dollar ($DXY) is retreating back down to the recent low, where if the 90.0 support level is taken out, a move to 88.0 will result purely on technically-induced sell programs, which will indeed push dollar currency alternatives higher.
As for the big picture regarding the primary bull trend, my opinion has not changed. The bull market has resumed its rally and will continue to make new highs into the first week of January.
I would be a buyer using any short-term corrections and use dollar-cost averaging strategy to accumulate positions at this level. If you are trading options consider selling premium with February and March expiration dates. Based on our models, the market (SPY) will trade in the range between $350 and $385 for the next 4 weeks.
"BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at $364 level using SPY and "SELL" signal is at $368 for short-term traders.
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 your 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 the 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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SECTOR SPOTLIGHT
There is a tremendous financial interest in the future of cryptocurrencies that have emerged in the past few months. First and foremost, central bank stimulus and the printing of unlimited fiat currencies is driving down the value of money all around the developed world.
As such, those same central banks, government agencies, corporations, fund managers and investors seeking a hedge against depreciation of base currencies are piling into gold, silver and Bitcoin, now considered digital gold.
The more central banks and governments promise to bring more debt to capital markets in efforts to resuscitate their economies, the more pools of money are seeking to offset the risk of currency devaluation and there is not enough gold in all the world to hedge against the downside risk of widespread devaluation.
Secondly, the very first use of Bitcoin in digital payment systems is taking hold as of about three months ago with PayPal Inc. (PYPL) allowing transactions to be conducted in Bitcoin by its 35 million vendors and 350 million users.
This was a huge step in bringing credibility to Bitcoin in addition to several high-profile billionaires establishing large positions in Bitcoin. Legendary investors Stanley Druckenmiller, Paul Tudor Jones and Bill Miller have all taken sizeable positions in Bitcoin this year. So, Bitcoin has moved from just a retail speculator’s asset to one where corporate involvement has fueled the cryptocurrency to new all-time highs.
Investors are anticipating other major payment processors, banks and merchants will begin adopting payment in Bitcoin. Imagine if Amazon.com puts a Bitcoin button on their checkout page.
Bitcoin has a stipulation set forth in its source code, that it must have a limited and finite supply. For this reason, there will only ever be 21 million bitcoins ever produced. On average, these bitcoins are introduced to the bitcoin supply at a fixed rate of one block every ten minutes. There are 6.25 Bitcoin in each block and 144 blocks are mined on average every day.
TRADE OF THE WEEK
Outside of buying Bitcoin on its own at any number of cryptocurrency exchanges or brokerages, the only Bitcoin-related asset traded on a stock exchange is the Grayscale Bitcoin Trust (GBTC) where its price movement is highly correlated to that of Bitcoin itself. The shares trade like water, with daily volume averaging over 5 million shares.
The advantages of trading GBTC are that your digital wallet at one of the crypto brokerages won’t get hacked, you’re in a highly-regulated ETF that brings with it a layer of serious oversight and a transparent management team that is accountable to shareholders.
Shares of GBTC have soared this year, more than tripling from $10 to $32 before some short-term profit-taking set in this past week. There are astronomical price targets as high as $100,000+ for 2021 that smack of the dot.com mindset, but with the supply of mined Bitcoin closing in on its limit, anything would seem possible in a world awash in liquidity that is rapidly growing every day.
When our AI platform rates Grayscale Bitcoin Trust, it takes into account numerous proprietary indicators that are updating around the clock 24/7. My AI platform is always thinking, always learning, which provides a stream of profitable trades for our members.
Applying our proprietary Stock Forecast Toolbox to GBTC, we get a powerful readout on this asset. If another rush of capital flows comes into Bitcoin, the potential for GBTC to trade in the high $40’s is a very real proposition.
A critical breakdown in the dollar index (DXY) of the 88.0 level would incite such a rally in the digital currency, and be one of the most powerful asset rallies to end 2020 and begin 2021. This is a trade that all short-term traders should have on their screens.
By being a member of Weekly Power Trader, its these kinds of opportunities that our AI-driven platform provides our members to look forward to every day the put their risk capital to work on both long and short positions.
Our Weekly Power Trader advisory service looks for opportunities only in blue-chip stocks and ETFs that are “green-lighted” by my proprietary AI tools, and when confirmed, are added to the recommended list with me investing my capital in selected trades.
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 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.
Just since December 1, we’ve rung the register on 24 straight winning trades, with excellent profits across the board. 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. My trading system has been on a torrid winning streak since we finished our Thanksgiving leftovers, scoring 27 straight winning trades, many of which are very heady gains.
This stellar performance is made possible by being right on 85.28% of all trades with an average profit of 31.61% per trade. This kind of performance is found anywhere in the marketplace for the low affordable price we offer to our members.
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.
Traders seeking the most-timely directional trading strategies where 3 of every 4 trades are profitable should take action and come alongside the Yellow Tunnel community and make Weekly Power Trader and Aggressive Power Trader your go-to AI trading platform for no-excuses performance.
Our AI platform crunches all the data, generating a constant stream of trade recommendations with the highest probability of generating incredibly profitable returns available to beginning, retail and professional traders anywhere in the marketplace today.
Go to our website at www.yellowtunnel.com and make the Weekly Power Trader service your default trading system where the AI that powers my all-world, always thinking platform.