BUY ALERT! STEP ON THE GAS WITH THIS HOT ENERGY STOCK
BUY ALERT! STEP ON THE GAS WITH THIS HOT ENERGY STOCK
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.
Each week my team and I advance several trading strategies while also helping traders improve their skills, discipline, and most of all, their success rate. Through our efforts, we are producing a phenomenal track record that is building real wealth for our members and changing lives every day.
CURRENT TRADING LANDSCAPE
When the current situation became the current situation, like most, I went through many thoughts, feelings and emotions. I had episodes of anxiety, where I woke up dripping in sweat in the middle of the night, debating whether or not I am exhibiting symptoms of coronavirus, not sure how I would function the next day.
This is when I began adding this paragraph to my daily emails, mostly as a benefit to myself, in order to get these thoughts out of my mind. As it turns out, so many of you didn't just see them, you actually read them and some, even responded.
I read your stories, your comments, your opinions, as well as your recommendations (including some excellent book recommendations), and it really brings a smile to my face and joy to my heart. Thank you for allowing me to share my thoughts with you, I am truly blessed.
This week markets fluctuated between gains and losses without any conviction. Oil stocks rallied on Thursday and began the bottoming process within the energy sector. $286 top on SPY has been set and vector turned negative using Aggressive Power Model. I expect the market to retest $260 level on SPY early this week or next.
"BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at $270 level using SPY and "SELL" signal is at $286 for short term traders.
Please review the Aggressive Power Trader Portfolio. Monthly predictions have been updated. SPY shows an average price for May of $264 and July $287. The model confirms "U" shape recovery.
I expect the market volatility and the three percent daily market moves to persist. At this point, I do believe we have set the bottom (market can overshoot support and resistance levels especially when VIX is high). I believe the worst part of the sell-off is behind us. Please monitor VIX level as current levels are above the historical average. As long as VIX at $40-70 level market can approach the recent lows. My strategy is to aggressively buy any market sell-offs (10-15%).
The market (SPY) will trade in the range between $240 and $285 levels for the next 4 weeks. I am still hedging my positions using SPY puts.
I believe the market will recover back to $290 level sometime during summer as the spread of the virus will slow down in Europe and the rest of the world.
Please follow key support levels on TLT ($142), GLD ($145). As long as these support levels are intact, the market is prone to pullbacks.
SECTOR SPOTLIGHT
Following a complete collapse of the price of oil this past week, OPEC, non-OPEC and U.S. oil producers have all agreed to across-the-board production cuts to shore up the market, and to some extent, it is working. WTI crude has gained almost 30% for the June forward contract, trading around $17/bbl with the July contract trading around $21/bbl and the August contract trading around $24/bbl.
The sector looks to add to gains as global supply is reduced and the global economy starts to normalize from the COVID-19 outbreak that shut down business and consumer activity in most parts of the world. The oil majors are showing good relative strength in the past few days, and being woefully under-owned by fund managers, stand to outperform in the days and weeks ahead.
The best way to play the sector on a very short-term basis is through the purchase of the S&P 500 Energy Sector SPDR ETF (XLE) that is the more favored trading vehicle due to the quality of its holdings and the excellent liquidity for trading options.