Flash Alert…Buy This 6G Stock!
Flash Alert…Buy This 6G Stock!
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.
Each week my team and I advance several trading strategies while also helping traders improve their skills, discipline, and most of all, their success rate. Through our efforts, we are generating a consistent stream of profitable trades that is providing real wealth-building to our members on a daily basis and we have the track record to prove it.
CURRENT TRADING LANDSCAPE
Anyone else getting into petty arguments with their fellow inmates? My wife and I have argued over the color of zucchini, the 1940 presidential election and whether anyone cares about the color of her nail polish, over the last 30 days, relentlessly. Today was yet another very entertaining discussion regarding universities. With my daughter looking at colleges to attend, we have been bombarded with emails from the universities throughout the country.
In the new flood of emails, we have been put on notice that many universities are considering going virtual for the first semester of 2020-2021 academic year. My wife cannot comprehend why would one pay for an online university the exorbitant amount these universities charge. Why can't these kids just attend community colleges, while the colleges of their choice are virtually teaching, for fraction of the cost?
I understand the financial aspect, but always presumed that the justification of paying for expensive universities is the education you are receiving, not the fun, college experience one gets while living on their campus. I won't bore you with the rest of our "conversation," I will just leave it at, we agreed to disagree.
The markets fluctuated between gains and losses on the initial unemployment claims and earnings data while Technology led all sectors to the upside and Energy and Financial sectors led the markets to the downside for the past week.
"BUY" signal based on the Aggressive Power Trader Portfolio is at $279 level using SPY and "SELL" signal is at $286 for short term traders.
Markets are overbought and can potentially sell off 10-15% in the next 2-10 days. I would not chase the markets at these levels. Futures data briefly touched $2885 using SPX June futures. Possible treatment of the virus, talks about restarting of the US economy and GDP data from China are all contributing Friday’s rally.
Please review the Aggressive Power Trader watch lists. Monthly predictions have been updated. SPY shows average price for May $264 and July $287. The model confirms "U" shape recovery.
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 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 $285 levels for the next 4 weeks. I am still hedging my positions using SPY puts. I believe market will recover back to $290 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 for pull backs.
SECTOR SPOTLIGHT
With the market overbought, but still getting a green light to push higher in the months ahead, traders should focus heavily on those sectors that have performed best in the most current snapback rally. That would be the semiconductor sector, by a wide margin relative to all other sectors.
The Semiconductor VanEck ETF (SMH) is the go-to ETF that is the favorite of traders looking to trade the sector and the related options. Shares of SMH have retaken their 50 and 200-day moving averages in the latest week, a highly bullish development.
There are several hot names in the ETF with Taiwan Semiconductor (TSM) holding the top spot. Taiwan Semi reported earnings this past week that exceeded estimates, which lit a fire under the group, boosting confidence that others will also surprise to the upside.
Looking at SMH through the lens of my algorithms, my AI-powered Seasonal Chart shows that SMH should sell-off in the next 20 days and then resume its uptrend going out the next 30, 40 and 50 days. It’s a powerful trend but just overbought in the very short-term. Rest assured, we’ll be trading this sector in the near future and traders that want in on or buy and sell signals should join our Power Trading and Markets service today.