Power Trading and Markets – November 25, 2019
Power Trading and Markets – November 22, 2019
Welcome to YellowTunnel.com a sister company to Tradespoon.com and our weekly Power Trading and Markets Letter, designed to bring aspiring and experienced traders a weekly column that provides insights to the short-term trading landscape, sector analysis, stocks and ETFs in focus, views and opinions on trader discipline and a review of what trades are working best.
Each week in Power Trading and Markets (PTM), readers should expect to receive one or more hot aggressive stock or ETF picks based on our proprietary AI and an analysis of the current trading landscape, what lies ahead for the coming week.
CURRENT TRADING LANDSCAPE
So, let’s dive right in and scan the market for where traders are placing their focus. As of last Friday, healthcare was emerging as the newest sector leader following President Trump’s proposal to promote regulations that make healthcare costs more transparent. It was also voiced by Iowa front runner Mayor Pete Buttigieg that he is not a supporter of the progressive healthcare for all at any cost agenda. Hence, stocks of managed care, pharmaceutical, medical device, and biotech companies traded firmly higher.
What had led the market, namely financials, technology, transportation and industrials consolidated, with financials holding up best while technology, transportations, and industrials retreated off of record highs. The market was overbought as were many stocks in these sectors and were due for some back and filling. Utilities also rebounded with the rally in the bond market, but other bond friendly sectors like REITs and consumer staples lagged. Friday closed out the week with financials and healthcare trading best as traders lightened up on risk.
For the week ahead, it’s all about the market taking its cue from the fluid on-again, off-again trade talks. The Fed is on the sideline, Brexit has been delayed yet again until January 31, 2020, and the impeachment process against President Trump is being viewed as making to the Senate where it will die by majority Republican vote. So, that just leaves trade with China and possibly worsening scenario in Hong Kong holding the keys to a next near-term directional move for the stock market.
Keeping my trading audience informed and “in touch” with how and what I’m thinking that drives my recommended actions is vital to maintaining a positive rhythm to winning consistently within a proven AI-driven system where an average of three out of every four trades is profitable. That’s a system that’s right 75% of the time, a ratio hedge funds would kill for. This 75%-win rate goes back to July 7, 2016, when I activated by an algorithm where $100,000 committed to every trade would today be worth more than $1.4 million.
My average return per trade is 24.57% tracking over 2,600 trades. My AI platform, developed over the past 15 years uses quant science to find and manage the highest quality, high return trade opportunities available. The software we developed leverages predictive analytics and hyper-fast processing speed to find relevant patterns in voluminous stock data, screening out the very best trade ideas with the highest potential for profit combined with fundamental and technical overlays that corroborate findings from the applied algorithms.
Our platform provides a depth of predictive precision that is virtually unmatched for retail investors. This is due to the sophistication of the platform's underlying algorithm. Our models take into account options volatility, statistical correlations with indexes and proprietary technical and fundamental analysis conducted in real-time, among other factors. We leverage advanced artificial neural networks that constantly self-learn in order to apply the best-fitting models to a particular stock or ETF in order to generate highly accurate signals.
It’s an incredible amount of research and work compressed into a capsulated format so that serious traders can act swiftly and confidently on our recommendations 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 that coincide 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 up to five days max, at which time in the majority of trades, would be closed out.
TRADE IDEA OF THE WEEK
Case in point, the health care sector has witnessed a clean upside breakout per the one-year chart of the S&P 500 Healthcare Sector SPDR (XLV).
Upon recognizing the sector breakout, our AI tools zeroed in on Cardinal Health (CAH) as a high-percentage probability trade, which we acted on. We recommended a buy price of 55.36, set a hard sell stop at 54.90, risking only 0.46, and exited the trade on the same day at a pre-set limit price of 55.56 for a 0.20 per share gain divided by the amount of money at risk (0.46) gives us a quick 43.48% return. Not bad for a day’s work! Below is an example of how we itemize our trades from the live trading room.
Our Stock Forecast Toolbox clearly illustrates that we’re still getting bullish signals in trading CAH when the stock provides dips to buy into. Having just exited a trade-in CAH at 55.56, we would advise buying in at the low end of the 10-day predicted range (54.51) and selling at or near the high end of the range (58.09).
When we identify a strong sector like healthcare for current trades, other leading stocks within the cluster of names emerging will be considered and recommended in the Live Trading Room. For instance, Anthem Inc. (ANTM) was added as a targeted trade for the next 48 hours, where traders should try to buy as close to our $290.49 recommended buy point and sell as close to our $296.40 sell point, representing a 2.0% gain. Depending on each trader’s level of risk, selling for 1.0% gain works out just fine over the course of 22 trading days a month. And maintaining a no more than 50% stop loss of the pre-set capital at risk (per stop price established) is practicing sound sell discipline for managing out of losing trades.
For the STI trade, after we bought the stock at 71.16, we set our stop at 70.20 or 1.3% below the entry price, risking 0.96 on the trade. We chose to close out the trade at 70.71 for a net loss of -0.45 which divided by our max potential loss of 0.96 equals -46.88%. Our gains and loss percentages are calculated off of the actual capital risk of each trade as determined by the designated stop prices.
For the CAH trade, our entry point was 55.36 and we set our stop at 54.90, risking 0.46 as a maximum loss. We sold CAH at 55.56 for a gain of 0.20. We divide the 0.20 by the amount of risk 0.46 resulting in a 43.48% gain.
I provide two executed trades below so as to show how we arrive at our numbers.
Recent Tradespoon Live Trading Room Trades
|
Symbol |
Action |
Open Date |
Close Date |
Entry Price |
Exit Price |
Stop Price |
Risk |
Net Gain/Loss ($) |
Net Gain/Loss (%) |
|
CAH |
LONG |
Nov 20, 2019 |
Nov 20, 2019 |
$55.36 |
$55.56 |
$54.90 |
$0.46 |
$0.20 |
43.48% |
This STI trade was followed by a 58.82% gain in Charles Schwab (SCHW) calls, a 32.43% gain in Bank of America (BAC) calls, a 30.23% gain in shares of Prologis Inc. (PLD) and a 53.76% profit in Citrix Systems (CTXS) – all of which occurred between November 20-21. We want to keep your trading capital busy, all the time, working hard to building wealth and this is how we do it.
I conduct the Live Trading Room events, spell out the parameters of each trade whereby traders determine their level of risk for each trade within the recommended range outlined and we move on to the next trade and do it again and again. It’s a truly hands-on system and personal approach that lends itself to building a high level of confidence for grooming traders with constant coaching and my guiding of each trade using the tools I’ve created.
We’ve recently launched our new service Aggressive Power Trader at an introductory monthly rate of only $17, which given our track record and my focus on helping individuals develop advanced trading psychology – is an incredible bargain. We 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.
Through the Aggressive Power Trader service, we tie our Tradespoon Live Trading Room to manage the parameters of every trade. The two platforms work seamlessly to provide our subscribers with the most robust trading experience that exceeds that of an institutional proprietary trading shop. 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 $17 for the first month, it’s almost a gift just to have traders try us out.
Go to our website at www.yellowtunnel.com and get acquainted with how to approach and harness the markets with the power of AI- with the mission of making millionaires out of ordinary people looking for a formula to not just raise their awareness and knowledge about trading successfully, but to fulfill the pledge of delivering the kinds of steady winning results and profits that change lives and secure retirements. Take us up on our offer and let’s get trading!