Power Trading and Markets – December 27, 2019

Power Trading and Markets – December 27, 2019

Welcome to Power Trading and Markets (PTM), a service of YellowTunnel.com that works in close relation with Tradespoon.com to bring readers a higher level of trading awareness and discipline backed by AI-driven research and the most advanced trading algorithm available to individual traders.

YellowTunnel intends 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, 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.

A winning trading formula is born out of the sophistication of my platform's underlying algorithm. Our models take into account options volatility, statistical correlations with indexes as well as 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. The power of a robust AI platform is fully on the trader’s side.

In this issue, I give a tight summary of the trading landscape, highlight a top-performing sector that we’re actively trading in and spotlight at least one stock or ETF that is demonstrating strong short-term performance. We also provide a look ahead as to what the traders should focus on so as to be watchful for timely setups.

OUR TRADING MODEL

When looking to execute the Aggressive Power Trader trades, we are buying near the "BUY" level with a "10 days prediction" higher than the close price. In the Tradespoon’s 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. Within our Aggressive Power Trader  list are trades that are traded during market hours in the Tradespoon’s Live Trading Room.  

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.

CURRENT TRADING LANDSCAPE

Markets continue to make new all-time highs as we approach the end of 2019 and a new year. Technology, Miners, and Energy sectors have led the market this week. The 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. Please watch 309 and 315 support levels using SPY. My opinion that the market will continue to make new highs in the last days of December/first weeks of January remains unchanged.  

Technology and Energy sectors are set to outperform the stock market in the next 5 days as fund managers window-dress portfolios with leading tech stocks and trade on recent strength in under-owned energy stocks.

SECTOR SPOTLIGHT

Recent momentum in big-cap software stocks is building as the sector is breaking out to a new all-time high. Shares of the North American Tech-Software iShares ETF (IGV) cleared the 230 level with conviction this week as investors pile into the top holdings within the sector.