BANK ON #1 SNAPBACK TRADE
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 our team at Yellow Tunnel brings forth both mental and physical tools for honing the skills and discipline necessary to be consistently successful in both up and down markets. Our robust track record speaks for itself and lives are being changed because of our efforts to help traders of all walks of life boost their net worth.
CURRENT TRADING LANDSCAPE
Any Peloton lovers out there? Prior to this pandemic, I was, you could say, an orange theory fanatic. My wife originally got me into it and ever since that day, I was there, Monday through Friday, without fail. I liked everything about it. The accountability of the point system, the friendliness and familiarity of the trainers, and the support of my fellow orange theory addicts.
Then came March 16th and all of the gyms closed. At this point, I do not know when they will reopen and whether I would even feel comfortable being in a gym, at least for now. So, I decided to take the plunge and order the Peloton bike. My wife, who has been eyeing one for months, had a large list of pros and a very nonexistent list of cons for this purchase, including a very wishful idea of our children using the bike to stay/get in shape. I was finally sold.
To my dismay, as I dreamed of spinning my way through this quarantine, I was told that the delivery time for the bike is 6 weeks out and any requests to move that date up will not be honored. Obviously, everyone else had the same idea, the smarter ones had it much earlier. So, I am back to the drawing board, debating whether or not I will even need this bike in six weeks or if it will end up, like so many of my wife's ideas, in our bonus room, collecting dust.
Markets gave up some of the gains from yesterday, but SPY managed to close above 289 level, which is short term the support level. My view of the market has not changed. At this point, I expect only shallow pullbacks and it is only a matter of time for SPY to trade above 200-day MA. Small-Cap stocks, Banks, Industrials led the market to the downside today. AAPL and AMZN delivered below expected earnings results.
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 aggressively buy any market corrections.
Based on our models, the market (SPY) will trade in the range between $270 and $310 for the next 4 weeks
This past week saw fund flows rotate heavily into the financial sector, under the notion that a V-shaped economic recovery was in the making. Banks, credit card processors, and asset managers all stand to benefit if the economy does make a speedier than anticipated rebound as Treasury Secretary Mnuchin has been promoting.
Under this scenario, traders that want to take advantage of this sector shift should consider putting to work the S&P 500 Financials Sector SPDR ETF (XLF) as the go-to trading vehicle. This is clearly the favorite of institutional accounts and hedge funds as XLF trades between 50-200+ million shares per day.
Shares of XLF rallied off the March 23 bottom of $17.49 and rallied up to $23.90 before running into its downward sloping 50-day moving average where some short-term profit-taking set in. But there is good buying pressure on dips thanks to the flood of liquidity and SBA stimulus flowing through to small business, and therefore an attractive trading range is being established.
The top ten holdings in XLF make up 55.26% of total assets with Berkshire Hathaway B (BRK.B) and JP Morgan Chase & Co. (JPM) occupying the top spots.
Applying my proprietary algorithms to XLF, our AI-powered Seasonal Chart shows that XLF should trade higher in the next 20 to 30 days, and further out to 50 days. It’s a powerful short-term trend for aggressive traders to take full advantage of. As the market incurs some well-deserved back and filling, I’ll be looking to trade this sector for those that want to trade on our signals within our Aggressive Power Trader advisory service.
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94% Meltdown Batting Average!
My trading algorithms found winning trade after winning trade. As of this writing, my total batting average since the meltdown is an astounding 94%.
(That’s 47 winners out of 50 -- with winners pulling 15-250% per trade.)
You can get a list of all my upcoming picks.
And it’s easier than you think.
TRADE OF THE WEEK
There is no bank stock more loved to trade than JP Morgan & Chase Co. (JPM). With a market cap of $281 billion, a brilliant CEO in Jamie Dimon and the reputation of having the best market and stock research on Wall Street, JP Morgan stands head and shoulders above all the other global megabanks.
Here too, I’ll be looking for my AI indicators to signal when trade JPM from the long side in the week ahead, and given the recent strength in the stock, this next dip will present a high reward/low-risk opportunity. But we wait until our AI platform signals to buy-in .
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 $1.8 million dollars. This torrid track record is not produced by hitting a home run from time to time. It’s made possible by being right on every 3 out of 4 trades with an average profit of 24.39% per trade.
Once you’ve become a member to 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 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.