As the warm weather of spring draws near, many of us eagerly embrace Passover and Easter as opportunities to come together with our beloved families. These special occasions provide an opportunity for rejoicing in delicious meals and drinks, as well as treasured conversations that reinforce family and tradition. It is truly a joy to be able to celebrate these occasions with those closest to us.
Family, like community, plays an essential role in our lives. They provide a sense of belonging, support, and security. Whether it's sharing experiences, exchanging ideas, or providing support during difficult times, families and communities help us to navigate life's challenges and celebrate its joys.
Establishing personal relationships with our family and friends is just as essential as having a trusted network of peers when it comes to trading and finance. Trading on one's own can be risky business, often resulting in rash decisions, lack of responsibility, and a limited perspective. Being a part of a trading community provides an opportunity to learn from others, gain new insights and strategies, and receive support and guidance when needed. Daily conversations with like-minded individuals can help to reinforce good habits and keep us accountable for our actions.
So, as we come together with our families and friends this Passover and Easter, let's also remember the importance of being a part of a larger community. Happy Passover and Easter to all who celebrate, and let's continue to support each other in all areas of our lives.
Just as I take pride in the familial bond I experienced this week, I am also proud of the community we have built at YellowTunnel. Our community is designed to provide you with a unique trading experience, where you can benefit from our A.I. trading program and learn while looking over my shoulder. We discuss trade ideas and the latest financial news in our weekly webinars and newsletters.
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:
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 for 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.
Recent Trade Review
Let's take a moment to review some of the recent trades that were recommended based on our APT model. One of the trades identified was in UnitedHealth Group (UNH), which provides healthcare services. Our model confirmed an uptrend in UNH, so I made a purchase on Tuesday and then trimmed my position on Wednesday.
UNH is a leader in the healthcare industry, with a strong track record of profitability and growth. As a diversified healthcare company, it has exposure to several areas of the industry, including insurance, pharmacy benefit management, and healthcare delivery - something that should perform well despite inflation-induced volatility.
Despite recent healthcare sell-offs, UNH has shown strength by posting new highs and lows in the past two weeks. I expect UNH's flight to safety to continue as yields drop, and investors rotate out of cyclical names into safety assets like silver (SLV), healthcare (XLV), and consumer staples (XLP). Our SFT model also indicated that UNH was a good trade to make at the time, something discussed during the mid-week live trading room, based on its strong fundamentals and technical analysis.
And so, I am pleased to report that the trade performed well, and I invite you to take a look at our latest performance:
As I continue to monitor my models closely, I am excited to see what opportunities we will identify next.
CURRENT TRADING LANDSCAPE
U.S. stock-index futures have risen slightly after the release of the March jobs report, a key economic indicator for the Federal Reserve. The Bureau of Labor Statistics reported that the U.S. added 236,000 jobs in March, a slowdown from February's revised 326,000 jobs added and lower than economists' predicted 240,000. Despite this, the unemployment rate has slipped to 3.5%, below economists' projected 3.6% and February's 3.6%. This, along with inflation data next week in the form of the consumer-price index (CPI), will help investors solidify their expectations. The weak economic data covering manufacturing and jobs that emerged last week have increased bets that the Fed will hold rates steady when its policy-setting committee meets in May, taking a breather from a streak of hikes over the past year.
The stock market has been focused on Friday's release of the monthly jobs report, with economists expecting a drop from February's 311,000 to 240,000. Traders are divided over whether the Fed will deliver another 25-basis point rate increase or pause for the first time in this hiking cycle. Currently, markets price in a 52.6% chance that the central bank will hold rates. Downbeat data earlier this week fueled fears that the Fed risks spurring a painful economic slowdown. Meanwhile, yields for the two-year and ten-year Treasury notes have dropped below multi-month support, with the ten-year yield at 3.2%. This has led some to believe that the market has seen the top for the next couple of months, and investors should sell into any further rallies. Money market funds are at a historical high of $2 trillion, similar to the situation in 2008, and cash deposit outflows are also at a multi-year high, with investors incentivized to move money from equities to money market funds and bonds which pay an average of 4.8%.
Other reports have also impacted market sentiment, including a fall in the ISM services index for March, which came in below expectations at 51.2, down from 55.1 in February. The ADP Research Institute also reported that private employers added only 145,000 jobs in March, lower than expected and a drop from the previous month's 261,000 jobs. With fewer private jobs added than anticipated and mortgage applications showing a decline over the past four weeks, the Fed's potential for raising interest rates this year is being closely monitored. OPEC's recent decision to decrease production output in addition to Cleveland Federal Reserve President Loretta Mester suggesting interest rates should exceed 5% has compounded inflation worries, creating headwinds that could make navigating the markets difficult moving forward.
As we enter Q2, the market continues to pull back, and investors should expect more volatility in the coming weeks. Money Market Funds (MMFs) are at a historical level of $2 trillion, similar to what happened in 2008. Cash deposit outflows are at a multi-year high, and when MMFs offer an average of 4.8%, investors are incentivized to move their money from equities to MMFs and bonds. All eyes are on the Consumer Price Index (CPI) data next week, and the start of earnings season in the next two weeks. Earnings season will begin with global and regional banks, and forward-looking guidance will set the tone for the market for the next few quarters.
In Jamie Dimon's annual letter, the JPMorgan Chase CEO warned that liquidity issues in credit markets are not over yet, and more analysts are increasing the odds of a recession in the upcoming few quarters. He believes that recent events are nothing like what occurred during the 2008 global financial crisis. The recent banking issues in the U.S. started with the collapse of Silicon Valley Bank, which was shut down by regulators on March 10 as depositors pulled tens of billions of dollars from the bank.
The rate has dropped significantly, causing a disconnect between the 2-year treasury at 3.5% this week and the Fed target rate of 5%. The QQQ and Bitcoin have had an impressive rally, but how long will it last? Probably not for much longer. There is now a narrative changing from a soft landing/no landing to a hard landing/recession, and standard correlations between the Treasury market and equity market are being restored. The bad news is bad for the markets, and the good news is beneficial for them going forward, unlike in the last 15 months.
When the market sells off, people tend to buy gold, silver, the dollar, and Treasuries (TLT). The new recession theme is that a bear market has resumed. The topping process has started, and we will likely not see new highs this year. It takes a few weeks for the top to be set, and the pullback is expected to start at the end of April or mid-May.
To confirm the recession theme, GLD, and SLV are breaking new highs, and GLD is knocking on the door of all-time highs. Small caps, IWM, banks, and industrial stocks are posting significant reversals this week and testing recent lows. The market is only being supported by a 20% gain in the SPY, which has been in the top 20 out of 500 companies, indicating a narrow leadership.
This is definitely a stock-picker's market, and risk management should be at the forefront of investors' minds. Volatility is increasing, and the odds of a recession are on the rise. Risk management is extremely important, and that's where YellowTunnel comes in. YellowTunnel provides expert opinions, tools for risk management, and models for validating trade ideas with macro and micro conditions. With YellowTunnel, clients can stay in the market with a sense of hope, knowing that they have the best tools and experts to manage their risks and make informed investment decisions.
With this in mind, I have identified my next Power Trading and Markets sector and symbol and have cross-referenced it with our A.I. models.
THE NEW RECESSION MARKET PHENOMENON IS HIDING IN PLAIN SIGHT
25%... 45%... 64%... all overnight.
All of these profits were banked for the exact same reason - and it happens during inflationary times with recession just around the corner.
It’s easier to find these trades than you think. And you can multiply them as much as 90 times over.
Today, I’m going to show you how to make money with JPM by April 13th potentially!
(A portion of Yellow Tunnel sales will go to directly help the Ukrainian people)
As we head into Q2, market volatility and Federal Reserve uncertainty remain prominent economic factors. Inflation remains an issue, and the latest banking fallout has shaken the market. Economic data continues to reflect this state of affairs in the U.S., but even so, there is one sector that I—as well as YellowTunnel's cutting-edge A.I. models—believe will thrive under these conditions.
The Health Care Select Sector SPDR Fund (XLV) is an exchange-traded fund that tracks the performance of companies operating in the healthcare sector of the S&P 500 Index. It includes companies involved in drug research, development, production, distribution, medical equipment, and supplies, as well as healthcare providers and services. With a significant amount of assets under management, this fund provides investors with an opportunity to gain exposure to the healthcare industry, which has a reputation for demonstrating resilience during economic downturns.
Currently trading below its 52-week high, XLV is exhibiting several positive indicators within its 10-day forecast. The healthcare ETF is showing a consistent and unidirectional vector trend, which is a positive sign for those who are bullish on this stock. Given the current economic uncertainty and market volatility, XLV is positioned to potentially serve as a haven for investors seeking stability.
In the present economic climate, it looks as if the healthcare industry is displaying a great deal of endurance and even flourishing. Considering this, investing in a symbol from this sector could be wise - and I believe I know just which one to pick!
TRADE OF THE WEEK - Vlad’s Healthiest 2023 Trade
UnitedHealth Group Inc. (UNH) is a well-known and trusted brand that is currently trading at a very low price point, offering a great investment opportunity within the healthcare sector. As a provider of medical insurance across the country, UNH is an essential component of the Dow Jones Index.
With a market capitalization of $452 billion and a trading price of approximately $483, UNH is much closer to its 52-week low of $445 than its 52-week high of $558. This indicates that there is significant potential for growth, particularly given the historical performance of the healthcare sector during uncertain economic times. This makes UNH a promising investment prospect for those seeking to profit from the current market conditions.
Before making any investment decisions, it is important to review the A.I. signals for UNH to ensure that the investment aligns with one's investment strategy and risk tolerance.
The Stock Forecast Toolbox is already predicting a strong rise in the 10-day forecast for UNH, with an impressive "A" rating, showing that this symbol has one of the most accurate forecasts within our database. There is no doubt that we can benefit from this positive trend; continuous and consistent increases mean I am certain that this symbol will behave just as its forecast indicates—upward! See 10-day $UNH predicted data:
Additionally, the UNH seasonal chart shows a promising increase in their 20- and 30-day predictions. With an exceptional accuracy score, it's clear that this symbol has multiple potentials to boom over the coming days according to its long-term data. See $UNH Seasonal Chart:
This week, I’ll be adding $UNH to my portfolio!
Our track record speaks for itself from the standpoint of a Winning Trades Percentage, Average Return Per Trade, and Net Gain. Just take a look:
The consistent performance of our services is just incredible. My historical stellar performance is made possible by being right on 84.76% 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.
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 2023 the best trading year of your portfolio yet!
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:
Thank you for subscribing to my blog. Let's have a great trading week!