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.
Bullish price action continues to paint the tape for what looks to be a solid week heading into the Thanksgiving holiday that is punctuated by Black Friday – America’s favorite day to shop. Money continues to move back and forth from growth to value as negative COVID-19 headlines converge with positive vaccine headlines.
Volatility has come down, reflected in the VIX trading at 22.50 and sitting at multi-month lows, implying a market where investors are all about buying the dips.
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. The Green color should be interpreted as a bullish signal and Red color as a bearish signal.
CURRENT TRADING LANDSCAPE
The SPY continued to trade in the range between $350 and $365 and bullish momentum is deteriorating. The $350 level is key support for the bulls. I expect short- term corrections to be shallow and the bull market to continue.
As long as the SPY is trading above the $350 level, the SPY will break out from the current range to the upside and potentially can reach the $370-$385 level by end of November/early December. On the downside, if $350 support is violated, SPY can potentially reach the $340-345 level this year.
The U.S. Dollar ($DXY) is trading below the $94 level and U.S. Treasuries (TLT) continued to trade in the downward channel. Value stocks continue to outperform and the breadth of the recent rally is impressive.
My opinion has not changed. The bull market has resumed its rally and will retest recent highs in November. 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.
"BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at $352 level using SPY and "SELL" signal is at $362 for short-term traders.
Based on our models, the market (SPY) will trade in the range between $318 and $370 for the next 4 weeks. Based on the aggressive trader monthly predictions, the market will break through the $360 level in December of 2020/first quarter 2021.
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.
The lower dollar and the surge in money supply have put a fierce bid under Bitcoin the past couple of weeks. Other cryptocurrencies are also seeing bullish fund flows as speculators look for alternative opportunities.
One big catalyst for the Bitcoin rally can be attributed to PayPal beginning to accept Bitcoin as a form of payment to their 35 million merchants worldwide. PayPal has over 350 million individual users, so the notion of wider usage of Bitcoin for everyday purchases and sales of goods and services is fueling the newfound optimism.
Bitcoin is trading at roughly $18,800 as of November 20 and is testing the all-time high set back in late 2017. Trading volume is surging and all eyes are on the dollar and other sovereign currencies that are under pressure. Bitcoin offers traders and fund managers a downside hedge to dollar-based asset exposure, and for this reason, any pullbacks in Bitcoin will likely be shallow.
TRADE OF THE WEEK
For those that want to trade a proxy for Bitcoin in their brokerage accounts, they should look no further than working with the Grayscale Bitcoin Trust (GBTC). GBTC is the first publicly-quoted Bitcoin investment vehicle and the first digital currency investment vehicle to attain the status of an SEC reporting company.
Grayscale Bitcoin Trust is solely and passively invested in Bitcoin, enabling investors to gain exposure to BTC in the form of security while avoiding the challenges of buying, storing, and safekeeping BTC directly. BTTC has a market cap of $3.73 billion with 542 million shares outstanding, making for a highly liquid trading vehicle.
From a technical standpoint, shares of GBTC are overbought on a very short-term basis. Pullbacks will be sharp and swift. Using our AI tools to maximize new entry points is vital to trading this ETF successfully.
Our AI platform tools are bullish on the near-term prospects for GBTC. The Stock Forecast Toolbox has a potential Predicted Resistance target of $25.74 over the next couple of weeks. This implies a burst of upside bullish activity depending on the underlying catalysts.
Again, trading this roman candle-like security can pay off big or can easily scorch those that don’t execute their trades properly.
With the stock trading at $21, there is excellent profit potential if the current trend cooperates and traders are provided the right entry and exit strategies. That’s exactly what we provide with Weekly Power Trader.
When our AI platform rates stocks, 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.
By being a member of Weekly Power Trader, you’ll be sure not to be left out if and when we move in and out of GBTC when our indicators tell us to act. This is a great time to consider joining, as market volatility and the promise of a powerful sector move make for an opportunistic trading landscape.
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 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.
For those that have followed since inception, a $100,000 initial investment when backtested may have grown to over $2.1 million dollars. This stellar performance is made possible by being right on over 77% of all trades with an average profit of 25.43% per trade. This kind of performance stands alone among all other trading services.