$Googl Search: Big Profits
As we bid farewell to August and inch closer to the final quarter of the year, it's time for another update on our furry friend saga from last week. If you remember, we were in the midst of introducing Luna, our new Australian Labradoodle puppy, into the family. Well, let me tell you, the past week has been quite the rollercoaster ride.
The moment Luna stepped into our lives, the fun was unleashed, and our kids and my wife were immediately smitten. They showered Luna with treats, affection, and boundless love. As for me, I had my mind on one thing: Luna's training journey.
In my typical fashion, I decided to kickstart Luna's training with an ambitious agenda. Rather than drag out the process of teaching her how to do everything over a longer period of time I decided I was going to double, and even triple down on the training. In a single day, I attempted crate training, potty training, and leash walking. Impatient as ever, I couldn't bear the thought of waiting for results (both for myself, the dog, and our furniture’s sake.)
Initially, things seemed to be going smoothly. We made significant progress with crate training, achieved peaceful nights of sleep, and even had success with potty training. But then came the pivotal moment – leash training.
That's when Luna's demeanor took a nosedive. She was visibly frightened of the great outdoors and still getting used to my presence. Suddenly, all the progress we had made over the past few days vanished into thin air. Luna would now turn tail and walk away every time she saw me.
But I wasn't about to throw in the leash just yet. Determined to be the best dog owner I could be, I sought the help of a professional dog trainer. The first session humbled me; it was crystal clear that the issues weren't with Luna but with my impatience and high expectations. The trainer's advice? Be patient, show love, and ask for little.
So, here I am, diligently feeding Luna every day and ensuring she doesn't retreat from my presence as I strive to mend our bond by continuing on in her training journey at her pace.
Now, you might wonder, what's the connection to finance and trading? Well, the answer is right there – patience. Just as I had to learn to be patient with Luna's training, traders need to exercise patience in the markets. The less you rush into trades, the more likely you are to find success. Wait for the market to come to you, instead of chasing immediate results.
I have a feeling that in the coming weeks, while I train Luna, she'll be teaching me some valuable lessons in patience. Returning to my trading desk, it's comforting to hear her little footsteps approaching, watching over me as I conduct my live trading sessions, and taking her on walks after the closing bell.
So, dear readers, remember the importance of patience not only in training our furry friends but also in your financial endeavors. Luna and I are here to remind you that sometimes, the best results come to those who wait.
Recent Trade Review
In this edition of a recent trade review, our spotlight shines on Clorox Company ($CLX). Featured in YellowTunnel's Profit Accelerator Trader service, we bring you an exclusive look at the trades that unfolded in the live trading room last Wednesday.
Our Profit Accelerator Trader services give us unique access to market insights. On that particular Wednesday, the PAT model identified $CLX as an intriguing opportunity. For those who follow our live trading room sessions, you can review the recording of that day here.
During the live trading room session, a significant move took place. I decided to trim our Clorox trade position based on the latest levels signaled in PAT. However, it's important to note that we remain long on this stock.
Now, here's the key takeaway and one of the major differences between our premium services and the free ones – timely alerts. With our premium services, you receive SMS messages that guide you precisely when to enter or exit a trade. This level of real-time information can make all the difference in your trading decisions.
If you're interested in reliving the action from that day or want to explore more live trading room recordings, you can find them here.
In the dynamic world of trading, staying ahead of the curve and having access to valuable insights is crucial. YellowTunnel's Profit Accelerator Trader services allow us to bring you these opportunities and help you make informed decisions in the market.
Stay tuned for more trade reviews, insights, and updates in the world of finance.
CURRENT TRADING LANDSCAPE
September started with a subtle tug-of-war in the major U.S. indices, as they oscillated between slight gains and minor losses. The beginning of the month saw U.S. stocks trading with mixed sentiments during Friday's early afternoon session. This oscillation was driven by a noteworthy development in Treasury yields following the release of the August jobs report, which holds particular significance given the impending Labor Day weekend, during which U.S. markets would be closed.
In an unexpected turn of events, the Labor Department's report revealed that the U.S. economy had added a robust 187,000 jobs in August. This figure defied economists' projections, which had anticipated a more conservative gain of 170,000 jobs. This unexpected 10% increase underscored the enduring strength of the labor market, despite the backdrop of rising interest rates.
The unemployment rate, albeit with a marginal uptick to 3.8% from July's 3.5%, diverged from the consensus estimate of 3.5%. This divergence hinted at the intricacies of the job market's dynamics.
The nonfarm payrolls report had a significant impact on U.S. stock movements, underscoring the enduring strength of the broader economic growth trajectory. This bolstered the optimism of some investors, who began considering the possibility of a "soft landing." However, it's important to note that the Federal Reserve's efforts to manage inflation through interest rate adjustments are far from concluded.
In response to this economic report, there was a noteworthy surge in Treasury yields, exerting pressure, especially on technology and growth stocks. The 10-year Treasury note yield climbed to 4.17%, while the two-year yield mirrored the ascent, reaching 4.87%.
The tech sector, a prominent player in the market, had experienced a strong week leading up to this juncture. However, as the employment report loomed, some investors opted to realize profits, leading to a rotation towards cyclical sectors and small-cap equities. Notably, the tech sector within the S&P 500 displayed fluctuations but remained on course for weekly gains exceeding 4%. Apple, in particular, stood out with a five-day winning streak, showcasing the tech giant's resilience and strength amid the market's nuanced dynamics.
Beyond the job market report, federal funds futures persistently signaled the likelihood of the Federal Reserve maintaining its benchmark rate within the targeted range of 5.25% to 5.5% during the upcoming policy meeting.
Shifting our attention to additional economic data, the Institute for Supply Management reported a slight uptick in U.S. manufacturing activity during August, with a PMI reading of 47.6, up from July's 46.4. While this suggests that the manufacturing sector is still experiencing contraction, the pace of decline has moderated, providing a glimmer of optimism.
On a global scale, various challenges continue to exert influence, including persistent weaknesses in China, defaults by major lenders, a resurgent DXY (U.S. Dollar Index), and longer-dated treasuries approaching yield highs reminiscent of October. In response, China has deployed stimulus measures, such as mortgage interest rate cuts and tax reductions.
Certain sectors, including Europe, small caps, technology, regional banks, and cyclicals, have continued to display vulnerabilities. The tech sector and the $SPY (SPDR S&P 500 ETF Trust) have both strayed from their uptrend patterns, now trading above their 50-day moving averages. Simultaneously, the $DXY has initiated a pullback.
Despite these formidable challenges, Apple's performance in the market has been noteworthy, marking a fifth consecutive trading day of gains. This streak underscores the tech giant's fortitude and resilience in the face of the market's nuanced fluctuations.
Staying in the technology sector, Salesforce ($CRM) and HP Inc. ($HPQ) have recently provided a glimpse into their financial performances, shedding light on their resilience and adaptability within the industry.
Salesforce reported an impressive second-quarter earnings report, surpassing expectations with flying colors. Closing on July 31, the quarter witnessed Salesforce's revenue surging to $8.6 billion, marking an impressive 11% increase from the prior year. This remarkable feat not only outpaced the company's own projections but also exceeded the Street consensus of approximately $8.53 billion. Salesforce's robust performance underscores its strength in the technology sector, instilling confidence in its ability to navigate the ever-evolving market landscape. Additionally, its optimistic outlook for both the upcoming third quarter and the fiscal year ahead further reaffirms its resilience and adaptability in the face of dynamic market conditions.
On the other hand, HP Inc. faced a different set of challenges, particularly in an environment where demand for personal computers encountered headwinds. These contrasting dynamics within the technology sector reflect the broader landscape's intricacies, where companies must continually adapt to seize opportunities and mitigate challenges. As we analyze the performances of these tech giants, it's essential to consider the broader context in which they operate, recognizing the unique opportunities and hurdles that each firm faces. These earnings reports provide invaluable insights into how these industry leaders navigate the ever-changing market conditions, offering valuable lessons for investors and stakeholders alike.
As investors shape their strategies, many are leaning towards a market-neutral approach, bolstered by economic indicators signaling a reduced risk of recession and a pullback in the U.S. Dollar Index. However, a prudent sense of caution remains, with experts anticipating the SPY rally to encounter resistance within the $450-470 range. Additionally, there is a notable support level identified between 400 and 430 for the forthcoming months, emphasizing the importance of astute risk management in this ever-evolving financial landscape. For reference, the SPY Seasonal Chart is shown below:
With these levels in mind, there is one specific sector, and one symbol within, that I will be moving on next week based on our latest A.I. readings.
SECTOR SPOTLIGHT
As the stock market continues to fluctuate, timing is crucial, and one sector that's been making waves lately is the technology sector. With recent earnings reports from tech giants like Salesforce ($CRM) and HP Inc. ($HPQ) providing valuable insights into the industry's performance, it's worth taking a closer look at tech-related investments.
If you're considering tech investments, one standout option is the XLK - Technology Select Sector SPDR Fund. This exchange-traded fund (ETF) is designed to track the performance of the technology sector within the S&P 500 Index. It comprises companies engaged in various aspects of technology, including software, hardware, and IT services.
What makes now a compelling time to consider investing in the XLK? For starters, the recent earnings reports from tech companies, such as Salesforce ($CRM), have demonstrated the resilience and growth potential of the tech sector. As the global economy becomes increasingly digitized, tech companies are at the forefront of innovation and transformation.
The XLK ETF offers a diversified portfolio of tech stocks, providing exposure to some of the industry's biggest players. This diversity can help spread risk while still benefiting from the sector's overall strength. Moreover, the tech sector often experiences periods of innovation and expansion, driven by factors like increased demand for cloud computing, cybersecurity, and digital services.
In times of economic uncertainty or market volatility, technology companies have shown their ability to adapt and thrive, making the XLK ETF an appealing option for investors seeking stability and growth potential. Whether you're looking to diversify your portfolio or specifically target tech-related opportunities, the XLK ETF is one to watch in the sector spotlight. Our A.I. models appear to agree! Just take a look at the 10-Day Predicted Data for XLK:
Assuming tech is looking at a nice pop, there is one specific symbol that has caught my attention.
TRADE OF THE WEEK - $Googl Search: Big Profits
Our Trade of the Week takes us into, you guessed it, the dynamic world of tech with a spotlight on Alphabet Inc. ($GOOGL), the parent company of Google, and it's not just because we love searching for opportunities, but because Alphabet is a tech powerhouse that has consistently delivered impressive results.
Alphabet isn't just a company; it's a global tech juggernaut that plays a pivotal role in our digital lives. Google, with its ubiquitous search engine, is just the tip of the iceberg. Alphabet's empire encompasses everything from cloud computing to self-driving cars. It's the kind of company that shapes the future while reaping the rewards in the present.
With the tech sector riding high on the wave of strong earnings reports from the likes of Salesforce and HP Inc., the timing is ripe for tech-related investments. Alphabet, with its diversified portfolio and track record of success, is a prime candidate for potential gains.
Google's advertising revenue, a cornerstone of Alphabet's earnings, continues to grow steadily - ensuring a steady stream of revenue. But it doesn't stop there. Google Cloud, a part of Alphabet's arsenal, is gaining momentum in the competitive cloud computing market. The ongoing shift towards digital transformation and remote work solutions has accelerated the demand for cloud services, and Alphabet is poised to capitalize on this trend.
Alphabet's resilience during uncertain economic times speaks volumes. It's a stock that has not only weathered the storms but has thrived in them. So, if you're seeking stability and growth potential in the ever-evolving tech landscape, Alphabet Inc. ($GOOGL) is a trade worth exploring. Remember, this is just the beginning of Alphabet's journey, and there might be some big profits waiting for those who embark on it.
This week, I’ll be adding $GOOGL to my portfolio!
Remember, strategic decisions are informed decisions. As you explore the options available in the market, consider the insights we've gathered and the potential opportunities that await. Stay tuned for more actionable insights as we continue our journey through the dynamic world of trading in 2023!
And one more thing! 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 85.28% of all trades that I made, with an average profit of 37.22% per trade on our collective trade recommendations. To my knowledge, this trading performance is one-of-a-kind and 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: