AMD To Shatter YTD Records: Soaring Stock Prices!
Hello and welcome to the YellowTunnel community, a family of trading services dedicated to all classes of traders seeking to elevate their trading skills, market awareness, and trading profits.
This week, mixed economic signals have sent shivers down the spines of investors who now worry inflation might be more persistent than initially thought. As if that wasn't enough, Fed officials at the central bank have been sounding hawkish, causing a stir among traders who are now factoring in more rate hikes. U.S. markets kicked off the week with a hint of optimism, but have since lowered, finishing the week in the red.
As the back-and-forth continues and investors look to find solid footing in 2023, it is apparent that not all that we assume is likely to happen will happen. For instance, talks of a hard or soft landing dominated the early weeks of 2023, only to take a backseat to mounting inflation and interest rate hike fears. Furthermore, companies that were perceived to start the year strong showed weakness, while global markets have seen similar back-and-forth fluctuations. Investors are scrambling to evaluate their projections and open positions. Something I was able to effortlessly navigate this week without breaking a sweat.
This is exactly where YellowTunnel excels: combining A.I. trading software with psychological analysis.
The gamut of early 2023 economic reports and data is behind us and looking ahead at the rest of Q1 may be confusing. In moments like these, when economic analysts and technical indicators look to catch up with the fluctuating data, I am reminded of the importance of setting, maintaining, and reviewing pillars of successful trading. These are tools and ideas traders should use to formulate a trading plan and financial strategies. The market is unpredictable, many things remain out of your control, and even your projections and predictions can turn faulty in the blink of an eye. Thus, I encourage and stress this in our daily live trading room, including psychological pillars and not just technical ones.
One of my key pillars of successful trading is understanding The Dichotomy of Control.
As a trader, I strongly believe that psychology plays a crucial role in the financial markets. Reading charts is important, but it is not the only factor that drives the market. One of the key concepts that I have come to appreciate is the dual dichotomy of process versus outcome, which is a core philosophy of ancient Stoicism.
At the end of the day, you can only control your own thoughts and actions and have little or no control over what others think or do. This principle not only helps me in my personal life with family, friends, and colleagues but also in my trading.
This week, we witnessed a perfect example of how market sentiment can be unpredictable. Better-than-expected retail numbers caused the market to pull back, while worse-than-expected inflation data led to a short-term rally. As traders, it's important to remember that we have no control over the news that affects the market, but what truly matters is how the majority of people react to it.
So, let's discuss how we can apply these principles to our day-to-day trading. As a trader, it is important to focus on the things we have control over and have a disciplined approach to risk management.
Q: How much cash should I have in my account?
A: The amount of cash in your account should depend on your market outlook. If you believe there will be a hard landing, it is recommended to have around 50% of your account in cash. If you believe there will be no landing or a soft landing, then 30% of cash may be sufficient.
Q: How much should I risk per trade?
A: In our live trading room, we generally recommend risking less than 2.5% of your account value per trade. We also suggest breaking down positions into two trades, with each one risking no more than 1% of the account value. When trading options, we advise spreading positions across different strike prices and expiration months. For stocks, we advise spreading positions across two key support or resistance levels.
The goal is to risk less than 10% of the overall account value and to have a maximum of four positions at any given time. By following a disciplined approach to risk management, one can better manage their emotions and improve their chances of success in the financial markets. Remember, it is important to focus on the things one can control and stay disciplined in their approach to trading.
In the end, mastering your own emotions and having a disciplined approach to trading can go a long way toward achieving success in the financial markets.
This is exactly why I highly recommend joining the YellowTunnel trading community. Our community is designed to provide you with a unique trading experience where you can benefit from our non-judgmental AI trading program and learn from other experienced traders.
YellowTunnel provides a 30-day risk-free trial that gives you full access to our platform and allows you to explore different trading strategies. You can test out our predictive software and trade intelligence platform and see for yourself the accuracy of our signals and the power of our trading tools. And if, after thirty days, you are not satisfied with our service, we will refund your membership fee - that's how confident we are in the effectiveness of our trading platform.
By joining YellowTunnel, you will have the opportunity to learn from other experienced traders and explore different trading strategies. Our community is designed to provide you with the support and guidance you need to become a successful trader. So why wait? Sign up for our 30-day trial and see for yourself why YellowTunnel is the top choice for traders who want to take their trading to the next level.
For more information on the YellowTunnel tools and our trading community, I suggest reviewing our latest Strategy Roundtable, which we hold weekly on YellowTunnel. I also recommend checking out our latest Roundtable webinar in its entirety below:
How To Trade a Bear Market Strategy Roundtable
With the unpredictable nature of the market and the uncertainty ahead of us, I can’t emphasize enough how vital it is for our readers and members of the Yellow Tunnel community to keep referring to our Live Trading Room so as to maintain a close tie of how our I and my AI platform is navigating us in and out of select trades. It’s FREE and I highly encourage everyone to sign up to the Live Trading Room and keep checking in throughout the trading day.
Every Monday and Wednesday, I highlight our best strategies and potential trading setups via the DISCORD server. It’s the future of bringing together a trading community’s total services, educational products, live chat venues, support, news, how-to tutorials, webinars, live-trading demonstrations, and tons of market analysis. It is incredibly interactive and full of crucial and timely information. Just go to:
I also want to emphasize to traders how vital a stop-loss discipline is to winning and being successful in an unforgiving market. We employ specific stop-loss instructions with every trade. The buy and sell programs controlled by high-frequency related algorithms can create great profits or cause sudden losses, so it is imperative to maintain an element of controlling risk with each trade.
NEW EARNINGS POWER TRADER SERVICE
I recently launched our new Earnings Power Trader service, which I am very excited about. Each week, 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.
This new service is special because it offers real-time alerts via SMS and access to Vlad's live positions and orders. When I put together this system, I wanted to be in the fight with other investors. That’s why I don’t play on your emotions to sell newsletters - I put my money where my mouth is.
Every trade recommendation that I make using this system – comes straight from the list of trade recommendations I use myself.
Not only that but every trade I make is logged in detail for you to review at any time. You can see my entire trading history, updated LIVE so that you can see, learn from, and even copy my trading strategy. Click here to learn more.
Signals have historically averaged over 85% accuracy in my live trading since inception. Sometimes I hold positions for 2-5 days by using options (selling OTM Calls and Puts spread) and targeting 1% target gain and 1% stop loss using stock price. The green color should be interpreted as a bullish signal and the red as a bearish signal.
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 Earnings 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 you’re 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 entered 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.
A 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 the stock is trading at $100, I would sell an OTM Put (strike less than 100) with an option BID price close to $0.5.
CURRENT TRADING LANDSCAPE
Investors experienced a volatile end to the trading week, with all three major U.S. indices closing lower amid fears of further interest-rate hikes by the Federal Reserve. The week began on a positive note with the release of several key economic reports, but the positive sentiment faded as the week progressed.
One of the most highly-anticipated reports was the Consumer Price Index (CPI) data for January, which showed a decrease in consumer price growth. However, the report also revealed that progress in curbing inflation is slower than expected, suggesting that the path ahead may be uncertain. This highlights the challenges facing the Federal Reserve in its efforts to control inflationary pressures, and it may need to continue implementing measures to contain rising prices.
The CPI report for January also indicated a smaller-than-anticipated decline in the annual rate of price growth, along with the most significant monthly increase in prices since June. This underscores the need for ongoing monitoring of inflationary forces in the current economic environment.
On a more positive note, the latest retail report released on Wednesday showed that retail sales in January exceeded expectations, indicating that consumer demand remains robust despite the challenging macroeconomic climate. Retail sales grew by 3% from the previous month, reaching a total of $697 billion, surpassing the anticipated 1.7% growth. Even when excluding the volatile categories of vehicles and gas, sales still showed a significant increase of 2.6%, surpassing the predicted rise of 0.45%. These positive retail sales figures suggest that consumer spending remains strong, despite the ongoing concerns about rising inflation.
The U.S. stock market took a hit on Thursday after cautionary statements from Federal Reserve officials, and the latest economic data on jobless claims and inflation only added to concerns. The mixed messages coming from the Treasury yields and producer-price inflation are also giving investors more to ponder. In January, the Producer Price Index (PPI), a measure of wholesale inflation, fell to 6%, down from December's figures. Although this is lower than what economists had projected, it remains higher than last year's PPI rate.
In addition to this, there was a 4.5% drop in housing starts in January, which signaled a potential slump in the housing industry. With all of these economic indicators in flux, investors and analysts alike are trying to make sense of the implications for the future of finance.
On Thursday, markets reacted to comments from St. Louis Fed President James Bullard and Cleveland Fed President Loretta Mester, who indicated that the Federal Reserve might have to continue raising interest rates to combat persistently high inflation. Bullard suggested that a 50 basis point hike at the March meeting is not out of the question, while Mester stressed the need to raise the federal funds rate if inflation remains high or demand and supply imbalances persist. With mixed economic data and uncertainty around Federal Reserve monetary policy, investors remain cautious about the trajectory of the economy in the coming months.
In other news, the latest labor data released on Thursday showed that the number of initial jobless claims filed by Americans last week was below economists' predictions at 194,000. This positive development in the labor market is something that the Federal Reserve has been closely monitoring to help combat rising inflation. The strong labor market data could assist the Fed in its decision-making process as it contemplates whether to continue raising interest rates.
China and precious metals started the year on a strong footing, but they have been selling off due to a stronger dollar. I would like to mention the weak performance of GLD and SLV in the recent pullback.
As it stands, investors are keeping a close eye on the Federal Reserve's next moves regarding interest rates as well as closely monitoring inflationary forces. The positive retail sales figures indicate that the U.S. economy is showing resilience, which is encouraging news for investors, while comments from the Fed have spooked traders.
With this in mind, there is a particular asset and sector I am looking to profit from in the coming days. Let's review our A.I. Trading System and some of its forecasts before we commit.
Source: barchart.com
As of Friday, the SPY was on course for a bearish finish to its week. The VIX has been highly volatile throughout this past week and it presently trades near $20 as we enter into the weekend. The 10-Year T-note rose throughout the week but began to lower on Friday.
I am watching the overhead resistance levels in the SPY, which are presently at $420 and then $430. The SPY support is at $410 and then $402. I expect the market to trade sideways for the next two to eight weeks. I would remain MARKET NEUTRAL ON THE MARKET at this time and encourage readers to hedge their positions. See $SPY Seasonal Chart below:
As the year progresses, it seems that the narrative is shifting away from the previously held beliefs of a hard or soft landing and toward the idea of no landing, as earnings remain robust and consumer strength continues. However, with the DXY strengthening in February and the two-year yield hitting 52-week highs, this situation may not last for long unless the dollar and yields experience a significant drop. Currently, there is a disconnect between the bond, currency, and equity markets; this needs to be closely monitored.
Despite the current situation, many remain in the "hard landing" camp, acknowledging the historically high US dollar and the Federal Reserve's high interest rates. Moreover, there are concerns about a possible recession in the future, as weak ISM data, weak leading indicators data, weak manufacturing data, and weak job openings data all suggest a downward slope in inflation. While the ECB and the Federal Reserve will speak in March, Fed committee members have already hinted at maintaining a hawkish posture on rates.
Despite the cautious market sentiment, it seems that everyone is looking at the glass as half full.
However, a more neutral stance may be the best way to approach the markets going into the summer, as equity markets are likely to be volatile, and a best-case scenario would see the market reaching its bottom in the first half of the year. It's important to note that the main reason for this is that S&P 500 revenue numbers will likely have to be revised down, which is currently not factored in the current market levels. All of these factors point to the continuation of the bear market this year, and investors should keep a close eye on how things develop.
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SECTOR SPOTLIGHT
Our A.I. trading system is on at all hours, calculating and re-calculating the latest happenings in the market. Our algorithms are putting in the work so you don’t have to. Still, it is important to note that the stock market is unpredictable and A.I. trading is not sufficient on its own. That is why YellowTunnel offers the best A.I. trading software that pairs high-end algorithms with psychological pillars. Together, this system helps retail investors trade like the pros – and the pros trade even better!
After reviewing the latest market conditions, I have identified an ETF with which I will look to get involved in the coming days.
The VanEck Vectors Semiconductor ETF (SMH) tracks the performance of publicly traded companies primarily involved in the semiconductor industry, including manufacturers of integrated circuits, memory chips, and other related components. SMH is one of the largest and most actively traded ETFs in the semiconductor industry, with holdings in major firms such as Intel, Taiwan Semiconductor Manufacturing, and NVIDIA.
The ETF offers us the opportunity to benefit from the potential growth of the semiconductor sector and diversify our investments with a wide selection of companies in this field. Over time, the SMH ETF has proven its successful track record, making it an indicator of technological progress as a whole. Investing in SMH can deliver exceptional returns while protecting your portfolio at all times! Let's review our A.I. forecast.
Trading near $240, SMH has given back gains in recent days and is still trading below its 52-week high of $284. As we've seen in recent days, and mentioned above, China and precious metals have shown strength to open the year but sold off following a rebound in the dollar. This offers us a great spot to get in on semiconductors and no better ETF does this than the SMH.
Looking at SMH's Seasonal Chart, primed for long-term forecasts, the symbol is flashing one time range of trading higher - 50 days - but with Sunday's update of the symbol, we could see additional time frames for the ETF to boom. Furthermore, the wide divide between the annual seasonal price and current level is a promising gap that could be closed as the week goes on - barring black swan events that send most forecasts into disarray. See $SMH Seasonal Chart below:
If SMH is to boom in the coming days, it would be wise to get in on a specific stock that should ride the semiconductor wave higher. I have already booked profit from this symbol in the past 12 months, and I look to do so again.
TRADE OF THE WEEK - AMD To Shatter YTD Records: Soaring Stock Prices!
Advanced Micro Devices (AMD) is a multinational semiconductor company based in California that has grown to become a leading manufacturer of microprocessors, graphics processors, and other computer components. In recent years, AMD has gained significant attention in the stock market, with its share price soaring due to strong demand for its products, which are currently listed on the NASDAQ exchange.
The company's products are widely used in personal computers, gaming consoles, and other devices, and it has secured partnerships with major players in the technology industry. Providing high-performance, low-cost alternatives to competitors such as Intel and Nvidia, AMD has carved out an impressive spot for itself. In particular, the company's Ryzen and Radeon lines of processors and graphics cards have been well-received by consumers and industry analysts alike.
Looking at our A.I. trading software's forecast of AMD I am seeing several signals I like.
Sporting a model grade of "A," AMD is listed in our top 10% for accuracy within our data universe. Trading around $78, AMD is right in the middle of its 52-week range of $54-$125 and has sold off in recent days. This dip provides us with a great price to enter, and looking at the latest movements in the precious metals and semiconductor fields, I am keen on profiting from these levels.
Furthermore, AMD is showing a promising trend when plugged into our Seasonal Charts. With two ranges of likely trading higher, 40 and 50 days, this symbol could move alongside SMH, closing the gap between annual price and current price. If this trend were to continue, we should see a promising Q1 for the brand-name manufacturer. See AMD Seasonal Chart below:
This week, I’ll be adding $AMD to my portfolio!
Discovering this trade is precisely where AI technology comes in handy. We connect our Live Trading Room to YellowTunnel in an effort to assist you in managing the current inflationary trend. We keep our positions updated on a regular basis and our AI system seamlessly integrates with our platform to give our customers the most comprehensive trading experience available today.
The beauty of our AI-driven system is that we are always equipped to bring new trade ideas to our members. Trades in best-of-breed stocks and ETFs that are not yet recognized by the larger universe of traders.
And our track record speaks for itself from the standpoint of a Winning Trades Percentage, Average Return Per Trade, and Net Gain.
The consistent performance of our services is just incredible. My historical stellar performance is made possible by being right on 84.81% of all trades that I made, with an average profit of 37% per trade on our collective trade recommendations. To my knowledge, this trading performance is one-of-a-kind that stands alone in the marketplace for superior trading advice where our numbers and results speak for themselves.
Traders looking for a more timely approach to trade should join the YellowTunnel community, where nearly 85% of trades were profitable, and utilize one of our AI trading platforms for no-excuses Trading. Our AI platform breaks down and analyzes hundreds of proprietary performance indicators to help you get the edge on your portfolio!
Go to our website at www.yellowtunnel.com and make one of our services your default trading system where the AI that powers my all-world, the proprietary platform, can help you make the first quarter of 2023 the best trading quarter of your portfolio yet!
Have a fantastic week, keep Ukraine in your thoughts and prayers, and let's make some great money together.
One more thing, I've had the opportunity to take additional action with a great organization supporting families in Ukraine directly. Gate.org is a foundation where fundraising is held for specific families, allocating funds to multiple families currently living in Ukraine. I am on the board of directors for this great initiative and encourage everyone to check it out and donate if possible. The war in Ukraine is escalating and families are being negatively impacted and displaced daily. To learn more about this initiative to help families, please see the link below:
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