Ride the Momentum: $NVDA Trade Setup for Profit
A Familiar yet Foreign World: Our Book Club Discusses 1984
Every month, our book club gathers to explore a new world, sometimes fictional, sometimes too real. This month, we read George Orwell’s 1984. Sitting around the table, the contrast in reactions was striking. For my friends who’ve lived their lives in free democracies, the novel felt like a terrifying warning. But for me, having grown up in the Soviet Union, it didn’t feel like fiction—it felt like home.
The slogans, the fear, the rewriting of truth—they weren’t literary devices, they were daily realities. I’ve heard the stories from my parents and grandparents: the purges, the silences, the pressure to say one thing and think another. I smiled grimly when we got to Big Brother is Watching. In my childhood, he was. For many of us, Orwell didn’t predict the future; he described the past.
And yet, as we talked, something else became clear. 1984 isn’t just about authoritarianism. It’s about how easily people can be lulled into a sense of stability. It’s about the danger of unquestioned narratives, the slow erosion of awareness. What made the book unsettling wasn’t just the control, but how ordinary it all felt to the people living under it.
That thought stayed with me long after we closed the book. Because when I opened the markets the next morning, I realized how familiar that feeling had become. The indexes were rising. The VIX was low. Headlines were mixed, but investors were shrugging everything off. There was a kind of eerie calm, not because risks had vanished, but because we’d stopped reacting to them.
Geopolitical tensions are still present. Trade threats are back again. Central bank confusion continues. But somehow, it all blends into the background. The story the market wants to believe is simple: things are under control. Inflation is cooling, earnings will hold up, and the Fed won’t surprise us. It’s a nice story. It’s comforting. But just like in Orwell’s world, comfort can be a trap.
I’m not suggesting we’re living in a dystopia, but the parallels are hard to ignore. Markets are built on belief, and right now, there’s a powerful belief that the worst is behind us. That growth will continue. That leadership, whether corporate or political, has a steady hand. And yet, history teaches us that complacency often precedes correction. When everyone stops asking questions, stops challenging the narrative, that’s when things tend to unravel.
There’s a fine line between confidence and blindness. Between stability and stagnation. Between managing risk and ignoring it.
Our book club started as a way to unwind, but this month, it reminded me why I do what I do. Because understanding sentiment, questioning narratives, and staying aware of the bigger picture aren’t just reading habits—they’re investing habits. And right now, more than ever, they’re essential.
As always: stay sharp, stay curious, and stay informed.
Recent Trade Review
Last Wednesday in our Dynamic Power Trading (DPT) session, we identified a long opportunity in Nvidia Corp. ($NVDA)—a leading name in the AI and semiconductor space. This wasn’t a guess—it was a high-conviction setup confirmed by our proprietary DPT model, which flagged the trade based on both macro tailwinds and strong technical signals.
You can watch the full breakdown and live execution here:
👉 Watch the trade in action
The trade aligned with favorable market sentiment, sector leadership, and our model’s multi-factor validation. We didn’t just act on potential—we acted on a system.
Here’s where the paid service makes the difference: timing. Premium members received SMS alerts for both entry and exit. These real-time signals help turn good ideas into managed trades—something free services simply don’t offer.
The NVDA trade delivered results, but more importantly, it reinforced why our tools and models matter. Every setup we take is backed by process, not guesswork.
More opportunities are coming—make sure you’re ready when they do.
Current Trading Landscape
This week, the market continued its tightrope walk, balancing relief rallies with geopolitical landmines and lingering macro uncertainty. While the S&P 500 pushed toward new all-time highs, closing near $622, the climb was anything but comfortable. My outlook remains market neutral in the short term, with SPY’s path boxed between strong support at $580–$590 and resistance in the $630–$640 zone. A decisive break above $640 would confirm renewed bullish momentum, while a drop below $580 could signal the beginning of a deeper correction. For now, I expect continued sideways action, with the long-term trend still under pressure.
The week began with headlines that reignited trade war anxieties. The expiration of the 90-day tariff truce was marked by President Trump dispatching formal notices proposing a 50% tariff on copper and fresh duties on Canadian imports, while warning BRICS nations of impending penalties. The market response was a mix of caution and confusion—tech, particularly Nvidia and large-cap AI names, helped prop up sentiment even as the Dow faltered and bond yields jumped to multi-month highs. The 10-year and 30-year Treasuries briefly climbed above 4.45% and 5%, respectively, driven by fears that rising geopolitical friction could stall global growth and keep monetary policy tight.
By midweek, the tone shifted slightly more positive. The Federal Reserve’s meeting minutes revealed internal divisions about the timing of future rate cuts, suggesting that easing could begin in 2025, but without any firm commitment. Labor market data continued to surprise to the upside—job growth and a drop in jobless claims underscored resilience—but it also reinforced the idea that the Fed has little urgency to act. Equities responded in kind: a firm bid returned to rate-sensitive sectors like utilities and real estate, while industrials benefited from strong earnings at Delta and encouraging GDP data out of China.
Retail sales for June came in hotter than expected, and early Q2 earnings reports from banks like JPMorgan, Citigroup, and Wells Fargo beat estimates, helping stabilize the broader market narrative. Despite worries about tariffs eating into corporate profits, major financials showed they can still navigate the storm. That said, forward guidance is emerging as the real story this earnings season, with forecasts expected to shape second-half positioning far more than backward-looking results.
Outside the usual data and earnings parade, the market absorbed a complex cocktail of geopolitical and commodity crosscurrents. A temporary ceasefire in the Middle East helped oil prices pull back roughly 12%, but tension in the Strait of Hormuz continues to hang over energy markets. Meanwhile, Bitcoin ripped through $122,000 before retreating slightly, lifted by strong ETF inflows and signals of a more favorable regulatory backdrop emerging from Congress.
And yet, despite all this, volatility remains oddly tame. The VIX has hovered near 16 throughout the week, a level that typically suggests complacency rather than caution. That disconnect between external risks and internal calm is what gives me pause. From tariffs and sticky inflation to a Federal Reserve walking a narrow path and rising unemployment risk, the list of potential headwinds is not short.
The underlying story here isn’t about strength or weakness—it’s about sentiment. And right now, sentiment feels stretched. The market wants to believe the worst is behind us. But history teaches us that when belief runs too far ahead of fundamentals, dislocations follow. In the coming weeks, the biggest challenge won’t be deciphering data—it’ll be navigating a narrative that keeps shifting, often at odds with the reality beneath.
For now, we remain in a narrow band: SPY’s rally has room to test $630–$640, but that move needs confirmation. Until then, caution is still warranted. The market may be making new highs, but it’s doing so with a nervous undercurrent that’s easy to miss—unless you’re looking closely.
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Sector Spotlight
In a market preoccupied with tariff headlines, conflicting inflation signals, and political uncertainty, there’s one sector that continues to assert quiet dominance—one that isn’t making the loudest noise, but may be making the clearest case for leadership. While many investors remain distracted by the surface-level volatility, deeper undercurrents are pointing toward a sector showing consistent accumulation, positive model momentum, and favorable macro alignment.
The Technology Select Sector SPDR Fund (XLK) closed Friday at $260.89, just below its all-time intraday high of $262.15. While broader indexes flirt with record levels and the VIX hovers near 16, XLK’s steady strength is a sign that institutional capital continues to favor growth and innovation, even in the face of mixed signals from the Fed and global trade tensions. Our A.I. model has consistently flagged XLK over the past two weeks, and this week’s confirmation near its highs—rather than a fade—only strengthens the case.
The backdrop helps explain the bullish tilt. Inflation data, while still sticky in areas like shelter and medical services, has shown signs of cooling overall, and Fed officials have started to hint more openly at potential rate cuts in 2025. This tone shift is a green light for tech. Long-duration assets benefit from rate-cut speculation, and XLK’s components—particularly large-cap software and semiconductor names—are uniquely positioned to ride this macro tailwind.
But it’s not just about macro theory. The price action is validating the story. XLK has held solidly above the $258 level this week, using that zone as a launching pad toward resistance in the $263–$265 range. That’s exactly the type of structure we look for: a clear zone of institutional support with room to the upside, confirmed by strength in its top holdings like Apple, Microsoft, and, of course, Nvidia.
With XLK trading just beneath resistance and our models forecasting continued strength based on both sector momentum and earnings season confidence, this looks like a key moment. If broader markets remain rangebound, XLK could still quietly break out—and our A.I. signals suggest that the rotation into tech leadership is not only real, but gaining traction. In short, tech is doing what strong sectors do: leading when others hesitate.
Trade of the Week: Nvidia – Tech's Relentless Engine
Riding the momentum of our bullish outlook on tech, this week’s Trade of the Week zeroes in on the name at the very heart of the sector’s strength: Nvidia Corp. (NVDA).
Nvidia closed Friday at $172.41, a whisper below its all-time high. Despite Friday’s slight dip, the stock has remained remarkably resilient, climbing steadily even as the market grapples with inflation surprises, rate speculation, and geopolitical noise. Nvidia’s ability to sustain these highs isn’t about hype; it’s about positioning, confirmation, and confidence. And right now, our A.I. models are in full agreement: this is a name with momentum that’s far from over.
What makes Nvidia so compelling this week is the convergence of technical strength and macro alignment. It’s not just riding the wave of AI enthusiasm—it’s setting the pace. While other semiconductor names like Micron and SanDisk have faced supply chain headwinds, NVDA has maintained a clean bullish pattern, bolstered by solid institutional demand and favorable regulatory developments. The recent approval of its H20 chip sales to China adds a meaningful international boost, and Congressional momentum around AI-friendly regulation further supports its long-term narrative.
Technically, NVDA remains in a textbook breakout. It’s holding firmly above $170 support and pushing confidently toward our next resistance target in the $180–$185 zone. Volume flows and trend structure continue to strengthen, and the A.I.-backed probability reading has only increased since last week’s live trade signal. In fact, the trade was executed live during our Wednesday session, and premium members received both the entry and exit plans via real-time SMS alerts, because good ideas only matter when executed with precision.
What makes this trade especially valuable right now is that it offers a rare combination of clarity and conviction. In a market full of noise and indecision, NVDA gives us a setup with structure, a sector that’s leading, and a story that continues to resonate. Whether it’s earnings season optimism or macro relief from a Fed pivot, NVDA stands to benefit.
As long as the broader market holds its footing and XLK continues to press toward new highs, NVDA should remain a top trade idea not just for the week, but potentially for the quarter. And if momentum carries it through that $175–$180 ceiling, we may be looking at a fresh leg higher that takes the entire AI space along with it.
This week, I’ll add Nvidia Corp. (NVDA) 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 82.98% of all trades that I made, with an average profit of 38.57% 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 first weeks 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!