TRADE ALERT…WHERE’S THE BEEF?
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.
With each week at Yellow Tunnel, our team is educating, enlightening, coaching and actively engaging our subscribers and trading community to heighten awareness, skills, instincts, and most importantly , wealth to our trading portfolios. It is our full purpose to bring real positive change to people’s lives and to enhance their experience trading the markets on a daily basis.
NEW OPTION FEATURE FOR PAID SUBSCRIBERS
I am thrilled to announce the launch of our new Option Portfolio for paid subscribers to Aggressive Power Trader. This expansion of our service brings a major offering of quick-hit option strategies to our audience that thrive on trading options. We offer specific option trading signals that show when to buy and when to sell. All traders need to do is execute per the parameters set forth in the table of instructions.
Sign up today and get in on the next set of trades, all stock and option signals come out the night before the trading day!
CURRENT TRADING LANDSCAPE
With the Mother's Day just around the corner, I am, yet again, at a loss of what to buy for my wife. I asked my older girls to buy her a gift with my money from all of us and was told that I was too little too late. Apparently, they have already thought this through and bought her presents a while back, what? I blame this premeditated behavior on the boredom of quarantine.
I really have no clue what to buy her. My wife buys herself whatever she sees fit. She doesn't ask for my permission or approval. She is a compulsive shopaholic and once she wants something, well, there is no stopping her. On top of that, she has an extremely specific, peculiar taste and if the gift is not within the realm of her "vision," it goes bye-bye. I have learned this a hard way and I stay out of her way, most of the time. Hence my usual dilemma of buying her a gift. What do you get for someone who can buy it herself and probably already has?
Weak sectors that sold off the most yesterday have rebounded today. I do not have any new findings except that the treasury had a strong rebound today (lower yield). Market is losing momentum and SPY can potentially retest $270 level next week. My view of the market has not changed. At this point, I expect only short term pullbacks and it is only a matter of time for SPY to trade above 200-day MA ($300 level by end of May/end of June).
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 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. The next level of short-term resistance is at $300 (200-day m.a.) where I suspect the market will have to broaden out to punch through.
Based on our models, the market (SPY) will trade in the range between $270 and $310 for the next 4 weeks and volatility will remain elevated.
Friday’s tape showed some fresh interest in consumer staples as leading sectors in technology and healthcare consolidated. It’s good to see some rotation into other sectors and with the bond market signaling deflationary pressure, a move into the consumer staples sector is a natural path for fund flows looking for defensive stocks that are not overly extended.
The easiest way to trade the sector is through the S&P 500 Consumer Staples Sector ETF (XLP). The sector made a big move off the March 23 low and hit up against its 200-day m.a. overhead at $60.60 followed by a pullback to $57 where buyers stepped in and pushed the shares higher on Friday in what is looking like a genuine upside reversal that will invite another challenge to trade above its 200-day m.a. and extend higher toward the previous high of $64.82.
The top ten holdings in XLP make up 71.42% of total assets with Proctor & Gamble Co. (PG) occupying the dominant top holding.
Applying my proprietary algorithms to XLP, our AI-powered Stock Forecast Toolbox shows that XLF should trade higher, sporting a solid “B” Model Grade. It’s a solid 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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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.)
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TRADE OF THE WEEK
A big beneficiary of the current beef shortage is Beyond Meat (BYND). The company engages in the provision of revolutionary plant-based meats in the United States and internationally. It offers its products in plant-based platforms of beef, pork, and poultry in ready-to-cook and ready-to-heat formats.
The company sells its products through grocery, mass merchandiser, club and convenience store, and natural retailer channels, as well as direct to consumer and various food-away-from-home channels under the Beyond Meat, Beyond Burger, Beyond Beef, Beyond Sausage, Beyond Breakfast Sausage, Beyond Chicken, Beyond Fried Chicken, Beyond Meatball, the Caped Steer Logo, GO BEYOND, Eat What You Love, The Cookout Classic, The Future of Protein, and The Future of Protein Beyond Meat brand names.
Beyond Meat reported earnings last week the impressed Wall Street. Revenue jumped 141% to $97.1M in Q1, beating estimates by $9.97M. Growth in volume sold was driven mainly by expansion in the number of distribution points both domestically and abroad, higher sales velocities at existing retail customers, and contribution from new products introduced over the year.
Gross profit soared to 38.8% sales vs. 26.8% as the extra sales leverage kicked in.Net income was $1.8M vs. -$76.6M a year ago. Adjusted EBITDA arrived at $12.7M vs. -$2.1M last year. Management suspended full-year guidance due to COVID-19.
The stock is moving aggressively higher late last week following the surprise earnings report that made the company profitable for the first time. Strong retail partnerships with Starbucks and Dunkin Doughnuts is also paving the way for more product distribution and a bullish outlook for the balance of 2020…and beyond!
Traders looking to get involved with Beyond Meat by way of trading the stock or options should be on the lookout for when I add BYND to our watch list of potential trades.
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 almost $1.8 million dollars. This fantastic performance is made possible by being right on every 3 out of 4 trades with an average profit of 24.37% per trade.