Alphabet (GOOGL) Stock on the Rise: Should You Invest Today?
The Great Faucet Fiasco: A Tale of Warranties and Wrenching
I never thought I'd be writing about a faucet cartridge replacement adventure, but here I am. It all started when my trusty kitchen faucet began to leak, and I discovered that the cartridge needed replacing. Given that I'd bought the faucet from Studio41 a decade ago, I thought I'd check if the lifetime warranty still covered it. Optimism was high as I walked into the store, receipt in hand, expecting a hassle-free replacement.
The part manager's verdict was swift: the warranty didn't cover the cartridge, and I'd have to shell out $100 for a new one. I paid, thinking that was the end of it. Little did I know, this was just the beginning of a wild goose chase.
Armed with my shiny new cartridge, I embarked on a YouTube-fueled tutorial marathon, spending a solid hour learning the intricacies of faucet repair. However, my enthusiasm was short-lived. Upon attempting to remove the 30mm nut – a European standard, it turned out! I realized I lacked the necessary tools. A trip to ACE Hardware yielded nothing but a sympathetic ear and a referral to the store where I bought the faucet. You guessed it; they sent me right back to ACE.
Determined to crack the nut (literally!), I scoured the internet and discovered that Home Depot carried specialized nuts and ranges that might do the trick. After a few days and $200 spent on parts, I finally managed to replace the cartridge. The faucet worked like new, and I felt a sense of accomplishment.
But then, the laughter started. Friends heard my tale and burst into giggles, informing me that Grohe, the manufacturer, actually offers a warranty on the cartridge – and even provides tools for installation! I was stunned. It seemed Studio41 had led me astray.
Now, I'm on a mission to rectify the situation. I've ordered a replacement cartridge directly from Grohe, courtesy of their warranty. The next step? Trying to return the cartridge and tools to Studio41, despite their "not returnable" stamp on my receipt. Wish me luck!
This experience has taught me to read the fine print, verify warranty details with manufacturers, and not take store representatives at their word. If you're a Grohe faucet owner, take heed: you might be eligible for free cartridge replacements and installation tools. And if you're Studio41, I'm coming for a refund!
Just like warranties, interest rates and inflation sometimes come with fine print — or at least expectations that shift. The first week of September reminded investors of that, as markets wrestled with exuberant tech strength on one side and a slowing economic backdrop on the other. AI-linked giants helped push the Nasdaq to fresh record highs, fueled by optimism that the Federal Reserve might soon ease policy. But that optimism hinges on more than hope — it’s tied to upcoming inflation data.
This week’s CPI and PPI reports are the last major checkpoints before the Fed’s next move. Expectations are for CPI to tick up to 2.9% year-over-year, while PPI holds steady at 3.3%. If those numbers come in hotter than expected, it could trigger a sell-off in both bonds and stocks — a reminder that even a small surprise can throw off your whole investment “repair.”
Markets may be betting on rate cuts, but just as a warranty can surprise you at the register, so too can central bank policies. One misread — or one worn-out “nut” in the economic engine — can cost more than you bargained for. So before you commit, whether to a repair, a loan, or a portfolio shift, read the terms, understand the risks, and brace for the unexpected.
Review of Recent Trade
Last week, our DPT Services model identified Oracle Corporation (ORCL) as a long opportunity, and the trade played out right on cue. Oracle reported surging cloud demand, a massive increase in its performance backlog, and several multibillion-dollar contracts, which helped fuel a sharp rally in the stock.
Shares spiked as much as 35–40% after earnings, validating the model’s signal and rewarding timely entries. While the stock did cool off after the initial surge, the setup showed how quickly the right mix of technical strength and fundamental catalysts can translate into strong gains.
This is also where the advantage of our paid service comes in—subscribers receive real-time SMS alerts with precise entry and exit levels, ensuring opportunities like ORCL aren’t missed in the moment. You can revisit the trade in last Tuesday’s recording of the Live Trading Room here: Live Trading Room Recordings!
Current Trading Landscape
This week’s market action captured the uneasy balance between surging tech leadership and an economy flashing signs of strain. The Nasdaq once again pressed to record highs on the back of AI-driven earnings, while the S&P 500 and Dow flirted with fresh peaks before easing on Friday. Yet beneath the surface, weak labor data, sticky inflation, and rising recession odds reminded investors that monetary stimulus alone can’t erase slowing fundamentals. The VIX held near 15, signaling calm on the surface, but volatility is lurking as next week’s Fed decision approaches. For SPY, I continue to see upside potential toward 650–660, with support in the 600–620 zone, keeping me in the market-neutral camp.
The week began with renewed trade tensions after a federal appeals court ruled most of Trump’s tariffs illegal, though they remain in place pending appeal. The uncertainty weighed on industrials and staples, but tech strength more than offset the drag. Alphabet’s favorable antitrust ruling sparked a rally across Communication Services, while Broadcom’s stellar report — $10B in new AI chip orders and raised guidance — reinforced the view that AI infrastructure demand is resilient even in a slowing economy. Oracle and Nvidia extended the tech momentum, helping the Nasdaq notch another closing record despite narrowing breadth across the broader market.
Macro data shaped sentiment as much as earnings. The August jobs report showed just 22,000 payroll gains with unemployment ticking up to 4.3%, the weakest reading in years and a stark sign of cooling momentum. Treasury yields slid in response, with the 10-year dipping to 4.08% midweek, but climbed again Friday as traders repositioned ahead of the Fed. Rate-cut bets are now fully priced, with futures pointing to three cuts by year-end starting with next week’s FOMC meeting.
Inflation was the other defining story. CPI rose 2.9% year-over-year, with core at 3.1%, both in line with expectations but still uncomfortably above the Fed’s 2% target. Producer prices, however, surprised to the downside — PPI slipped 0.1% in August, bringing the annual rate to 2.6% versus forecasts of 3.3%. Together, the data reinforced the narrative of mild stagflation: inflation remains sticky while growth stalls. Rising jobless claims and hiring freezes are shifting the Fed’s focus squarely to employment, making a rate cut next week all but certain.
Friday capped the week with a mixed session. Stocks wavered after the CPI release but clawed higher by mid-day, with the S&P 500 extending its winning streak to five days. Commodities reversed higher, with gold breaking to fresh records above $3,680/oz and oil rebounding as geopolitical tensions escalated following Russian drone incursions into Poland and sharp rhetoric from President Trump. IPO activity also accelerated, with Klarna, Bullish Group, and Miami International Holdings among several names coming to market.
Looking ahead, the spotlight is firmly on the September 17 Fed meeting. The decision, along with retail sales, housing, and industrial production data, will guide the next leg for equities. My outlook remains cautious: while SPY has room to grind higher, the long-term trend remains under pressure as higher-for-longer rates collide with rising unemployment. YellowTunnel’s AI models also project choppy sideways action in the weeks ahead, reinforcing a neutral stance until clarity emerges from the Fed.
An Aggressive Trade — And a Quiet Warning
I’ve been talking about the outsized gains and the performance of my trading algorithms, but that’s not really what I want to talk about today.
I’ve been working in the trading world for more than 20 years, and I’ve noticed a very disturbing trend - one that seems to fly under the radars of so many readers.
Here’s what happens: a new stock “expert” comes along promising huge returns for you if you sign up for their trading advisory. He cherry-picks his track record, showing you just enough winning trades to make you feel as though he knows what he’s talking about.
🔗 See the strategy for yourself!
Sector Spotlight
Not every corner of the market has been able to withstand the push and pull of rising unemployment and sticky inflation. Consumer staples have been pressured by higher import costs tied to tariff uncertainty, industrials are wobbling under weaker demand signals, and financials slipped as falling Treasury yields raised fresh concerns about lending margins. Yet amid the volatility, one sector has not only held its ground but has continued to pull the broader market to new highs.
Earnings and price action this week tell the story. Broadcom’s blockbuster quarter showed $15.96 billion in revenue, with $10 billion in new AI chip orders that confirmed enterprise spending on artificial intelligence infrastructure is accelerating even as the broader economy slows. Oracle reinforced the theme, with cloud and enterprise software demand pushing results higher. Nvidia, still the poster child for the AI build-out, extended its streak of record closes, while other chipmakers like Lam Research joined the rally. Even as breadth weakened — with fewer than half of S&P 500 companies advancing — these names were strong enough to drive the Nasdaq to repeated all-time highs.
At the same time, macro conditions are feeding into the tech advantage. With the August jobs report showing only 22,000 payroll gains and unemployment rising to 4.3%, bond markets immediately priced in near-certainty of Fed rate cuts. The 10-year yield fell as low as 4.08% before bouncing, but the trend is clear: lower yields support high-growth, future-earnings-driven sectors like technology. Even with CPI ticking up to 2.9% and core inflation at 3.1%, the market is prioritizing labor weakness over inflation risk. That calculus disproportionately benefits tech, which is seen as resilient in both easing and slowdown environments.
All of this funnels back into the Invesco QQQ Trust (QQQ). As the Nasdaq-100’s proxy, QQQ gives investors exposure to the very handful of stocks that continue to dominate market returns. In a tape marked by recession risk, narrow breadth, and tariff-driven volatility, QQQ has become the purest expression of where money is flowing: toward scale, innovation, and companies at the heart of the AI transformation.
Trade of the Week: Alphabet (GOOGL)
Within that leadership group, Alphabet (GOOGL) has emerged as a standout opportunity. This week’s antitrust ruling was pivotal: regulators required changes to exclusive contracts but stopped short of breaking up Chrome or Android, lifting a cloud of existential risk that has hung over the stock for years. Investors immediately responded, sending GOOGL up 10% in a single session, and sparking a rally in the broader Communication Services sector.
Alphabet’s regulatory reprieve comes at a moment when macro and market dynamics play directly to its strengths. With rate cuts nearly guaranteed next week, the market is rewarding companies with strong balance sheets, durable free cash flow, and a clear path to growth. Alphabet checks each box. The company is rapidly integrating AI into its search and cloud platforms, positioning itself alongside Nvidia, Broadcom, and Oracle as a winner in the next wave of tech spending.
This week also illustrated how concentrated leadership has become. With fewer than half of S&P 500 stocks advancing even as indexes hit new highs, it is companies like GOOGL that are carrying disproportionate weight. That concentration creates risk, but it also underscores the opportunity: being aligned with the winners matters more than ever in this environment.
In short, Alphabet now combines regulatory clarity, AI-driven growth, and market leadership at a time when the Fed is about to pivot toward easier policy. With the Nasdaq and QQQ continuing to lead, GOOGL is primed for a strong run and is the Trade of the Week.
This week, I’ll add Alphabet (GOOGL) to my portfolio!
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 82.90% of all trades that I made, with an average profit of 38.53% 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.
As we move into the thick of Q3, now is the perfect time to reassess your trading strategy and take your portfolio to the next level. Visit our website at www.yellowtunnel.com to explore our range of services and select one as your default trading system. With the power of our AI-driven platform, YellowTunnel is designed to help you navigate the complexities of the market, refine your strategy, and drive profitability in 2025.
Whether you’re focused on real-time trade opportunities, advanced analysis, or developing a disciplined trading mindset, we’ve got the tools and insights to guide you. As the year unfolds, let's work together to make 2025 the most profitable year for your portfolio. But remember—successful investing starts with informed decisions. Always conduct thorough research and assess your risk tolerance before executing any trades.
Let’s make this year a transformative one for your financial growth!
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:
Wishing you a week filled with resilience, growth, and prosperous opportunities!