Smokin’ Hot Pot Stock
Smokin’ Hot Pot Stock
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 stock market continues to get healthier from the latest news of an effective vaccine produced by Pfizer that carries with it a 90% efficacy rate of success. The exact timeline as to when widespread distribution will happen is yet to be determined, but it sounds like April-May of next year as to when it will be available in large quantities.
Until then the market is also showing some concern for the spiking COVID-19 data in that we’re heading into the winter months without a vaccine. There is fear that many states will re-invoke broad shutdowns of public and private places that could severely dampen the holiday season and stifle business once again.
With that said, there is a general tone of optimism that has underscored by expectations of the election process being finalized, the eventual delivery of a vaccine and a forthcoming stimulus plan to keep the v-shaped economic rebound on track.
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
The SPY took a pause from the recent rally. The SPY has broken through the main overhead resistance at $350.
The $350 level is key support for the bulls. I expect short term corrections to be shallow and the bull market to continue to retest 52 weeks high.
As long as the SPY is trading above $350 level, the SPY will break out from the current range to the upside and potentially can reach $370-$385 level by end of November/early December.
The U.S. Dollar ($DXY) is trading below $94 level and U.S. Treasuries (TLT) continued to trade in the downward channel.
My opinion has not changed. The bull market has resumed its rally and will retest recent highs in November. I would be a buyer using any short-term corrections, and use dollar-cost averaging strategy to accumulate positions at this level. If you are trading options consider selling premium with February and March expiration dates.
"BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at $346 level using SPY and "SELL" signal is at $353 for short-term traders.
Based on our models, the market (SPY) will trade in the range between $318 and $370 for the next 4 weeks. Based on the aggressive trader monthly predictions, the market will break through the $360 level in December of 2020/first quarter of 2021.
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.
The assumptive win by Joe Biden to take up occupancy in the White House put a fire-sized bid under the cannabis sector. Both he and VP-elect Kamala Harris are both for the legalization of both medical and recreational marijuana nationwide. And it didn’t take long for traders to bid up pot stocks last week before they consolidated the past few trading sessions.
Trying to pick the right pot stocks to invest in can be very tricky, in that there are those with niche markets, extreme balance sheets, regulatory hurdles, fledging distribution agreements and raw data on medical and recreational demand.
For those wanting to invest in the sector and take a good portion of the guesswork out of the stock-picking process, they should consider owning ETFMG Alternative Harvest ETF (MJ) as an alternative way to cast a net over the top companies in the space. The top 10 holdings make up just over 55% of total assets.