Alert: Super Cycle Stock

Published Oct 30, 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.

A very strong earnings reporting season is not enough to offset a triple set of market headwinds that have the major averages sliding to key support levels. A lack of clarity on the next week’s election outcome, a timetable for a Congressional stimulus package and news of when vaccines to treat a resurgence of COVID-19 have a short-term grip on trader sentiment.

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 I have probably mentioned before, I am a big Orangetheory fan. It’s the intensity of the workout, the enthusiasm of the coaches and the stimulating music list that keeps me coming back. Who am I kidding? It’s that heart rate monitor and the tv that shows everyone’s color zone, that gets me every single time.

The other day, the heart rate system was down and so were the TVs. Guess what, it was the sorriest workout of all time. I could not believe how little of self-control, self-drive and self-respect I actually possessed. I mean, I do this for me, I don’t care what anyone else thinks or what color everyone else is in, right? I do this to stay healthy, not to get into the orange zone. And I do, I do this for me, but every little bit of an incentive definitely helps.

The SPY continued to trade in the range between $320 and $331. The $320 level is key support for the bulls. All the sectors are oversold and due for a bounce-back this week or early next week as we are approaching the elections day.

As long as the SPY is trading below the $342-345 level market is range-bound between $318-$345 levels for the next 2-3 weeks. I expect a hard retest of $320 level and potential short term break out to 200-day moving average in the next two weeks.

The U.S. Dollar ($DXY) is trading below the $94 level and treasuries (TLT) continue to trade in downward momentum.

My opinion has not changed. We are in the middle of the consolidation phase before the bull market will resume by end of November\December. 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 $325 level using SPY and "SELL" signal is at $331 for short-term traders. There are no stocks in the SPY in a confirmed uptrend according to our models.

Based on our models, the market (SPY) will trade in the range between $318 and $360 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 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.

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SECTOR SPOTLIGHT

The latest COVID-19 data showing a fresh rise in caseloads, hospitalizations and fatalities have some European countries implementing lockdowns with several states in the U.S. considering similar actions. The notion of getting life back to normal has been put on hold once again, which changes market sentiment just as quickly.

Working remotely from home or anywhere is becoming the new normal, and has a secular trend look and feel to it. Cutting edge technology is enabling the ability to perform at high levels on secure networks.

Shares of the Direxion Work From Home ETF (WFH) are long a host of stocks of companies that are richly benefiting from the “work from anywhere” experience, led my none other than Zoom Video Communications Inc. (ZM).

From a purely technical standpoint, shares of WFM topped out earlier this month at $59.52 and have pulled back to a very attractive entry point around $54 where the stock spent much of the month of September trading between $52-$54.

Trading WFH in the days ahead when the market turns higher would bode well for readers of this blog to join up today to Weekly Power Trader and be ready when we act on this trade.

TRADE OF THE WEEK

While our work and personal lives have been turned upside down from the pandemic, it has become clear to millions of Americans that maintaining a healthy lifestyle is key to dealing with Covid fatigue, boredom and just maintaining a positive mental attitude.

One of the quintessential stocks of the whole work from home, stuck at home, the trend has been Peloton Interactive Inc. (PTON), maker of interactive stationary bicycles and treadmills . The company’s products are wildly popular with the average waiting period for a new piece of equipment being 3-4 months.

Sales for 2020 are forecast to soar by 98% to $3.62 billion with the company turning a profit for the first time of 12 cents per share. 2021 earnings are estimated to jump by 400% or more depending on whether they can keep up demand.

From a technical standpoint, the stock was overbought and is now retracing some of the torrid gains of the past couple of months to where it’s about to test its 50-day moving average where I want to get traders involved. It’s rare to find such a powerful stock that trades within its own stealth bull market, affording us numerous trading opportunities.

When our AI platform rates stocks, it takes into account numerous proprietary indicators that are updating around the clock 24/7. My AI platform is always thinking, always learning, which provides a stream of profitable trades for our members.

By being a member of Weekly Power Trader, you’ll be sure not to be left out when we move in and out of PTON when our indicators tell us to jump in. This is a great time to consider joining, as market volatility and the promise of a powerful sector move make for an opportunistic trading landscape.

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 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 for less than one day. I personally look to enter a position at the 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 $2.1 million dollars. This stellar performance is made possible by being right on over 77% of all trades with an average profit of 25.14% per trade. This kind of performance stands alone among all other trading services.

In just the past 10 trading days, we’ve booked a string of nice profits for Weekly Power Traders, primarily from the short side. Stocks typically fall faster than they rise, making for some excellent short-term trades. It makes little sense to fight the tape, and currently, there is good money to be made on the downside until the SPY tests support at $320 or somewhere close to that level.

Once you’ve become a member of 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 go-to AI trading platform for no-excuses performance.

Our AI platform crunches all the data, generating a constant stream of trades with the highest probability of generating incredibly profitable returns available to the beginning, retail and professional traders anywhere in the marketplace today.

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.