Power Trading and Markets – January 12, 2020

Power Trading and Markets – January 10, 2020

A warm welcome to everyone to another solid week of bullish trading from our Yellow Tunnel community. Here we aim to improve trading psychology, awareness and hone those trading skills that result in steady and success profits day after day, week after week, month after month. Additionally, we also want the business of aggressive trading to be an enjoyable one where the AI tools we employ are user friendly, accurate and bring a high level of confidence to all those that follow our path to trading profits.

CURRENT TRADING LANDSCAPE

The bull market has continued its rally after tensions in the Middle East subsided with Friday being a day of where traders took some gains.  The technology sector continues to lead all other sectors with the big caps Apple, Alphabet, Amazon, Facebook and a host of semiconductor stocks outperforming.

Market outlook for the next four weeks remains the same. I expect shallow corrections in the next two weeks and bullish trend to be intact as long as tensions in the Middle East do not rise.  Please watch 315 and 320 support levels using SPY. My opinion that market will continue to make new highs for the first weeks of January as we approach next earnings season.  

SECTOR SPOTLIGHT

This week, I’m highlighting two sectors the we are buyers of. The first is China, where trader optimism has returned in light of the Phase One deal set to be signed January 15 by both the U.S. and China. Led by market leaders Tencent Holdings Ltd. (TCEHY) and Alibaba Group Holdings (BABA), CNOOC Ltd (CEO) and some banks and industrials, the Shanghai is trading back up to challenge a key overhead resistance level.

A breach of 3100 opens the way for a move up to 3500 and yet would still be some 30% off its all-time high of 5200 set back in 2015 during a euphoric period. Sentiment is improving in that further progress will be made on trade leading to a roll back of tariffs that are in place in addition to the narrative that global growth is going to pick up in 2020. Against this backdrop, China’s market looks attractive and is trading well.

I’m also bullish on the German stock market. As the fourth largest economy in the world, Germany is the engine of growth for greater Europe. The German economy is export-dependent to drive GDP growth and their finished goods are of the highest quality and best brand recognition in the world.

Unlike most of the other European markets, the German DAX is trading right back up against its all-time high set back in early 2018. A break above 13,500 for the DAX will take that market to new highs and invite further follow-on buying. Led by global powerhouse companies like SAP SE (SAP), Allianz SE (ALIZF), Bayer AG (BAYRY) and Adidas AG (ADDYY), I’m looking to trade this blue-chip market aggressively from the long side on any dips.

TRADE OF THE WEEK

Having highlighted two sectors, I’m a buyer of two country ETFs that are in very constructive patterns. The first is the iShares China Large-Cap ETF (FXI) that we have been using in one of our Tradespoon elite trading services. Once there was a restoration of confidence that a trade deal was in fact going to happen, the China market caught a strong bid and has been trending higher since.

Shares of FXI are trading at $44.50 and are running up against a key technical level that I believe will be exceeded at $45. Money flow is bullish as are my AI indicators as four of five probability readings are “higher” for the next 30, 40 and 50-day periods.

I’m also going to be trading the iShares MSCI Germany ETF (EWG) as a proxy for the German market. This ETF owns the stocks noted above and a host of other blue-chip German companies that are leveraged to the industrial sector where that economy is most tied to. The stock traded as high as $36 back in January 2018 in tandem with the S&P 500, but summarily pulled back with the struggling broader European economy.

Shares of EWG are seen as having some further short-term upside momentum for the next 10 days and then run into some resistance. Makes sense when looking at the chart that shows the $30 price level to be a technical battleground. But the uptrend is in place and EWG can be traded for short-term increments from the long side.

In our new service Aggressive Power Trader, I walk 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 beauty 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 my LIST to examine well ahead of when I’m going to execute my best ideas the next day. It also makes available my watchlist of trading candidates with the various parameters that I supply to manage each trade with defined risk levels.

Each day at 8:00 PM and 8:30 AM CST, we provide our Top Bullish and Bearish Stocks, each with an Entry Point. Our signals are meant to last 1-2 days. Below are actual recommendations with parameters found on our Aggressive Power Trader Watchlist.

This past week, Aggressive Power Trader added GS, AAPL and few other stocks to the watch list. As a reminder, consider buying near "BUY" level with "10 days prediction" higher than close price. In our live trading room. I usually hold position for 1-2 days.  

 

I allocate less than 5% of my portfolio if I hold position overnight. On average, less than 1% of portfolio should be at risk if you hold position less than one day. I personally enter position at predicted LOW (BUY) price or yesterday's close price.  My stop loss is 1% and my target gain is 1% of 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 that exceeds that of an institutional proprietary trading shop.

 

 

For those that have been trading alongside us for the past three years, their lives may have been changed forever. A $100,000 initial when back tested investment may have grown to nearly $1.7 million dollars. Yes, it takes real dedication and personal discipline to accomplish these kinds of gains, but this is the mission of us here at YellowTunnel.com – to train retail investors to hone the skills of a master trader empowered by the cutting-edge AI tools I’ve created and refined over the past decade.

 

We also provide instructional videos on how to best use your membership and invite our members to participate in live weekly strategy roundtable workshops that are archived in the event that they need to be viewed at a later time.

 

Our algorithms are second to none on the Street and being we at YellowTunnel are targeting the retail trader as our audience, it is a special situation that gives every trader a serious advantage never offered before anywhere. And for our special introductory offer of a $17 trial, should the first financial priority for 2020 of accelerating financial success.

 

Go to our website at www.yellowtunnel.com and get real-time serious about banking daily aggressive trading profits in your portfolio.

 

OUR TRADING MODEL

Within our Aggressive Power Trader trading list, trades are recommended in our Tradespoon Live Trading Room as well as having access to my Watch List.

YellowTunnel is purposed to deliver high-visibility sector strength where a cluster of leading stocks are identified, coinciding with what we call a “10-day prediction momentum trade”. When we recommend a stock, ETF, or related option strategy, our time horizon is same-day in-and-out and up to five days max, at which time in the majority of trades, would be closed out.

When looking to execute recommended trades, 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 I usually allocate less than 5% of the portfolio if I hold a position overnight. On average, less than 1% of the portfolio should be allocated if you hold a position less than 1 day.

For the best results, I personally 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.