Welcome everyone to Yellow Tunnel, an aggressive short-term trading service dedicated to those seeking to leverage artificial intelligence, decades of trading experience and an enviable track record to underscore up our promise that we can deliver strong and consistent performance.
Our team is fully committed to empowering members’ trading strategies, trading psychology, trading awareness and trading skills that generate short-term actionable trading strategies, resulting in a high percentage of steady profits .
CURRENT TRADING LANDSCAPE
This past week’s major achievement was getting my mother to use Zoom!!!! Yes, it took some time and some patience, but the bottom line, Zoom experience was a total success. Maybe I should buy some Zoom stock. I really hope that once the quarantine ends, people will actually want to leave their houses. I am completely serious.
Everyone is starting to get a hang of this stuff and companies are really picking up their game. My wife ordered sidewalk chalk from a local toy store, in order to support local, according to her, and, low and behold, two hours later, we had a cute little bag, wrapped with ribbons, left on our doorstep. Beats Amazon, if you ask me.
The markets were able to reclaim $273 level using SPY as attention is shifting to when everyone can start going back to work. The path of least resistance is to the upside and SPY reached the $280 level Thursday. I would wait to see if SPY can hold on to $260 level until the earnings season begins in earnest next week that could potentially add negative surprise to the market participants.
"BUY" signal based on the Aggressive Power Trader Portfolio for Monday is at $268 level using SPY and "SELL" signal is at $281 for short term traders.
My opinion has not changed. Markets are susceptible to retest the recent lows if earnings guidance disappoints more than expected.
Next 2 weeks will be crucial in terms of leveling off the number of new coronavirus cases, and confirmation of the bottom on SPY.
Please review Aggressive Power Trader Portfolio. Monthly predictions have been updated. SPY shows average price for May $264 and July $287. The model confirms the most optimistic scenario of "U" shape recovery as long as we can break through a $280 level by June-July.
The first major overhead test for SPY at $280 (orange 50-day m.a.) was met with some selling into the long weekend. The next level of major technical resistance is up at $296 (black 200-day m.a.)
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 $280 levels for the next 4 weeks. Worst case, SPY can sell off to $210 level. I am still hedging my positions using SPY puts.
I believe the market will recover back to $300 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.
We’ve seen the market’s rebound broaden out this past week, moving from the leadership of the defensive sectors to now include those sectors more leveraged to economic growth. The latest actions by the Fed to backstop all credit markets, including junk bonds and collateralized mortgage obligations (CLOs) was truly an eye-popping fiscal policy and something that had never been done before.
This action put a solid bid under the commodities market as most of the perceived stress within the global economy tends to be reflected in oil, base metals, and materials. From the one-month chart below of the S&P Metals & Mining SPDR (XME), we can see this ETF clearing a key short-term resistance level this past week.
Trading XME is an excellent way to play this sector breakout. It owns a strong line up of leading companies in their respective sub-sectors that include gold, silver, steel, aluminum, copper, aggregates, coal and scrap metal.
Shares of XME show up well on my AI platform with all four probability indicators for the next 20, 30, 40 and 50—day periods registering “higher” readings. I’ll be considering XME as a trade for our subscribers in the week ahead and those that want to get in on this trade and other opportunities should join our trading service outlined below and make sure to not miss out.
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TRADE OF THE WEEK
Within the top ten holdings of XME is one of my favorite stocks to trade when the sector is starting to heat up. Freeport-McMoRan Inc. (FCX) is a go-to name in the copper space that also has a solid gold mining business as a compliment.
As of December 31, 2018, the company's estimated consolidated recoverable proven and probable mineral reserves totaled 119.6 billion pounds of copper, 30.8 million ounces of gold, and 3.78 billion pounds of molybdenum.
In my Tradespoon Stock Forecast Toolbox shown above, my algorithm is putting a near-term price target of $12 on FCX if the market can continue its current upside momentum.
From the one-month chart below, shares of FCX are putting in a short-term golden cross pattern, where the 20-day (blue) and 50-day (orange) moving averages move up through the 200-day (black) moving average – a very bullish formation.
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, our trading instructions to a tee, a $100,000 initial investment when backtested may have grown to over $1.7 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 24.15% per trade.
Once you’ve become a member of 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. I sense the market is in the final stages of a retest and you’ll want to have our updated recommendations at the ready when its time to lean into the next rally.
Go to our website at www.yellowtunnel.com and make Aggressive Power Trader your default trading system where the AI that powers its watchlist has a record of winning 75% of the time and becomes a way of life for your trading experience. I look forward to welcoming you as a new member, but it’s up to you to take us up on our offer and put our tools to work for your portfolio in the week ahead and let’s start making money not just some of the time, but all of the time.
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.