#1 BUY ALERT! Better Than Gold

Published Jan 9, 2021

#1 BUY ALERT! Better Than Gold

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 market has responded in a bullish fashion following the blue sweep of the Congress that gives Democrats a big advantage to forward their agenda. There are high expectations of more pandemic stimulus and big-spending packages for infrastructure and environmental projects.

Against this optimism is the surge in COVID-10 cases, hospitalizations and deaths where the race to get vaccines to the general population has been hampered by a number of logistical issues. It is truly a race against time and hopefully, the pace of inoculations will rapidly increase in the days and weeks ahead.

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

As for the market’s trading landscape, the SPY continues to make incremental gains and reached the $380 level. The new SPY main support is now at the $372 level.

The U.S. Dollar and the Treasuries continued to trade in the downtrend with the 10-year Treasury yield breaching 1.0% for the first time in nine months. As long as the SPY is trading above $372 level, the SPY will continue to make incremental gains and can reach $385 level first half of January.

I’m looking for a 5%-10% correction during the January – February timeframe with the bull market has resumed its long-term rally and will continue to make new highs into March-April. I would be a buyer using any short-term corrections, and use dollar-cost averaging strategy to accumulate positions. If you are trading options consider selling premium with March and April expiration dates.

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 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

With all the heightened expectations of an infrastructure package in the works, it is of no surprise that commodities are in rally mode. Prices of all precious and base metals have increased in the past month, fueling strong momentum that has legs for more gains.

The SPDR S&P Metals & Mining ETF (XME) is trending nicely higher and challenging levels not seen since early 2018. Trading at $36.40, Shares of XME are way off the 2008 high of $95, implying huge upside potential.

The top 10 holdings are a blend of gold, silver, copper and iron ore that makeup almost half of the total assets.

Our AI platform is bullish on XME. The Stock Forecast Toolbox gives XME a “B” Model Grade rating with a 10-day price target of $43.42. With the shares trading at $36.35, that’s a pronounce move if is materializes, and our highly accurate model is says it will.

TRADE OF THE WEEK

Of the top holdings in XME, the one stock that stands out among its peer group is Freeport-McMoRan Inc. (FCX). Freeport is a major copper producer with roughly 85% of revenues stemming from copper production. The balance is of revenue is derived from gold, molybdenum, silver, and oil and gas.

Revenues are set to soar by 35% in 2021 to $18.6 billion as strong demand for copper coupled with rising copper prices provides a one-two punch for profits that are forecast to spike by 300% to $2.00 per share from $0.50 in 2020.

The stock has exploded out of a base at $25, gapping to $31, where it will consolidate before setting up for a move to $40. We’ll be buyers of the stock and the calls through our Weekly Power Trader service, looking to ride this bullish breakout for all its worth.