Flash Alert! Silver Lining Trade

Published Aug 28, 2020

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.

What a week! The software sector enjoyed a melt-up, bond yields jumped, a Category 4 hurricane swept through lower Louisiana, record heat waves set tens of thousands of acres a blaze in California, social unrest took another turn for the worst in Kenosha, Wisconsin and Fed Chairman Jerome Powell talked up inflation as its new directive.

This week also culminates the Republican National Convention following the Democratic National Convention with the election fireworks about to ignite. It’s a lot to capture, but regardless of the perception of all these events, the stock market found its way to new all-time highs again as hopes of a vaccine and a third quarter rebound in corporate profits has kept bullish sentiment fueling the upside momentum.

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.

What is highly notable is the quality of the trades our AI platform puts out week after week. Stocks like Apple Inc. (AAPL), Applied Materials (AMAT), DocuSign Inc. (DOCU), Home Depot (HD), Microsoft Inc. (MSFT), Nvidia Inc. (NVDA) and Proctor & Gamble (PG) are of the elite stocks leading the market higher.

They and other front running institutional favorites are where we direct our attention and trading capital to capture profits with confidence, conviction and consistency. Sector rotation is rampant week after week, from growth to value, then to defensive and over to commodity-driven stocks. Big cap tech remains the torchbearer of this rally, but there will be a sudden shift into cyclical stocks that will lead at some point.

And you don’t want to miss out when the ground shifts under the market landscape because our members are going to make a lot of money on this trade.

CURRENT TRADING LANDSCAPE

The market continued to make incremental gains. The treasuries sold off today (the TLT traded below key support at $161!!!! after Powell's speech) and the DXY continues to go through the bottom building process and trading in the narrow range. Both the treasury and the currency markets support the continuation of the bull market.

Industrial, Small Cap, Financial and Energy sectors outperformed the market and technology, metals and consumer discretionary stocks underperformed today with the anticipation of higher interest rates in the next few years.

The short-term bottom is at $330 and potentially can be retested early September. SPY longer term overhead resistance is at $360. I would be a buyer using any short-term corrections, and use dollar-cost average to accumulate positions.

"BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at $348 level using SPY and "SELL" signal is at $351 for short term traders.

Based on our models, the market (SPY) will trade in the range between $330 and $360 for the next 4 weeks.

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TRADE OF THE WEEK

This week, my indicators are flashing a buy signal to re-enter precious metals, with a keen focus on silver. Not only is silver an excellent hedge against depreciating currencies both here and abroad, it serves a vital function as a core industrial metal in the manufacture of specific products. Roughly 1 million ounces of silver are used per year for solar cells, silver bullion bar, coin fabrication, silver jewelry, and silverware manufacturers.

Behind global private investors that don’t trust currencies as a long-term storehouse of wealth, the iShares Silver Trust ETF (SLV) is the second largest holder of silver in the world. The SLV sponsor is iShares Delaware Trust Sponsor LLC, a subsidiary of BlackRock, Inc. The SLV trustee is Bank of New York Mellon.

The SLV custodian which oversees the trust’s silver bullion stockpile, is JPMorgan Chase Bank. The annual sponsor fee is ½ % of the exchange-traded fund’s net asset value. This expense is accrued on a daily basis, and paid monthly in arrears. According to a recent SEC 10-K filing the Sponsor earned $25,294,785 USD for 2015 alone.

Finally according to the SLV 40 page prospectus, only Authorized Participants are allowed to deposit or take delivery of any physical silver bullion held within the SLV London warehouse. Physical silver deposits and or withdrawals are done in share baskets each representing 500,000 oz of physical silver bullion.

Source: jmbullion.com

Our AI-driven stock forecast Toolbox shows near-term price resistance at $25.16, right where the stock currently trades. A break above this level opens the way to retest and take out the recent high of $27.39.

Depending on the price action over the next couple of days, I’m looking to put SLV on as a new trade. Get signed up today and be ready for when I pull the trigger on this trade and other high-quality trades like those noted above.

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 less than one day. I personally look to enter a position at 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 $1.6 million dollars. This stellar performance is made possible by being right on over 76% of all trades with an average profit of 24.72% per trade. This kind of performance stands alone among all other trading services.

Once you’ve become a member to any of our service – Weekly Power Trader or 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 also archived in the event that they need to be viewed at a later time.

Traders seeking the most-timely directional trading strategies where 3 of every 4 trades are profitable should take action and come alongside the Yellow Tunnel community and make Weekly Power Trader and Aggressive Power Trader your daily trip to the bank.

Our AI platform crunches all the data 24/7, generating a constant stream of trades with a high probability of generating fantastic results. Our record speaks for itself and I want to encourage all readers of this blog to join today and start receiving our updates ASAP!

Go to our website at www.yellowtunnel.com and make the Weekly Power Trader service your default trading system where the AI that powers my all-world, always thinking platform.