Boeing: High Flyer or Airline Graveyard?
Greetings and a warm welcome to the YellowTunnel community!
This week, comments from the Fed and the latest economic data shifted interest rate and inflation sentiment, and once again traders found themselves scrambling to find an appropriate path forward. As this occurred, I found comfort in something that I have always stressed: trading psychology.
As a trader, it is easy to get caught up in the fast-paced and high-stress environment of the stock market. The pressure to make quick decisions and the fear of missing out can lead to impulsive and emotional trading, resulting in poor investment choices.
Stock Market Trading Psychology: The Importance of Self-Awareness and Mindfulness
Taking several steps to stay in tune with finance news and myself, I look to maximize my knowledge in both fields in order to become the best trader I can be. Reading up on market news, following the latest webinars, and being part of a trading group or forum are instrumental in keeping up with the day-to-day activities it takes to stay on top of the market. But what are you doing to support your trading on a personal level? How are you maintaining your mental health?
For example, I am excited to embark on a yoga retreat in Costa Rica, as yoga has been an essential part of my life for the past fifteen years. Through regular practice, I have discovered new muscles, found inner peace, and experienced a sense of flowing energy. I am looking forward to the opportunity to do yoga three times a day, eat healthily, and meditate.
This retreat also presents an opportunity to reflect on the importance of self-awareness and mindfulness in trading psychology. As a trader, it is crucial to be aware of one's thoughts, feelings, and behavior when making investment decisions. Journaling is an excellent tool for promoting self-awareness and reflection.
Source: unsplash.com
By keeping a trading journal, you can track your emotions and identify patterns in your trading behavior. Reflecting on your experiences can help you learn from mistakes and develop strategies to avoid repeating them in the future. It is also essential to have a checklist that you review before trading, outlining concrete action items for your trading plan.
Self-awareness is key to successful trading, and it is important to recognize when emotions like boredom, loneliness, or fear of missing out are influencing your decision-making. By observing your thoughts and emotions without judgment, one can identify the underlying reasons for their trading decisions.
Yoga can also be a useful tool for developing self-awareness and mindfulness. By practicing yoga regularly, traders can improve their mental and physical health, leading to greater resilience and overall well-being. Yoga can also help traders develop the discipline and focus needed to stick to their trading plans and avoid impulsive trades.
Self-awareness and mindfulness are crucial for successful trading in the stock market. By incorporating practices like journaling and yoga into your daily routine, you can become more aware of your thoughts, emotions, and behaviors, leading to more informed and rational trading decisions. Therefore, whether you are embarking on a yoga retreat or starting a daily journal, make self-awareness and reflection a part of your trading practice.
And this is something we cover in our weekly webinars. Conversations like these are what separate YellowTunnel from the rest.
Our community is designed to provide you with a unique trading experience where you can benefit from our A.I. 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. Our community is designed to provide you with the support and guidance you need to become a successful trader.
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
The stock market finished the week in the red, with investors spooked by rising inflation and concerns over interest rates. Stocks tumbled after the Federal Reserve's preferred measure of inflation, the core personal consumption expenditures price index (core PCE), came in much higher than expected in January. The index rose by 4.7% year-over-year, surpassing economists' expectations of 4.3% and December's revised level of 4.6%. The increase is a clear sign that higher prices are entrenched and the Fed will have to be more aggressive in its monetary policy to combat inflation.
Both goods and services prices increased by 0.6% in January compared to the previous month, with food prices up 0.4% and energy prices up 2%. The inflation reading, combined with robust economic data released during the week, increased bets for higher interest rates among traders. This came as several Fed members spoke and reiterated the need for necessary measures to combat inflation.
Alongside PCE data, we also saw several other key economic reports, including retail earnings and the latest Fed minutes. While chip stocks rallied on the back of strong fourth-quarter earnings results and an improved outlook from Nvidia, other companies such as Alibaba, Domino's Pizza, Dutch Bros., Etsy, Moderna, and Planet Fitness saw their stocks move in response to their respective earnings reports. Walmart and Home Depot's quarterly earnings, released this week, painted a weak outlook with subdued expectations for the year.
The Purchasing Managers' Indexes, robust retail sales, and labor market reports have contributed to the narrative that the US economy is resilient. However, investors have become increasingly concerned about rising interest rates, as the Federal Reserve is expected to continue raising them and keep them higher than initially anticipated. The recently released minutes from the Federal Open Market Committee's (FOMC) January 31-February 1 meeting shed further light on the endgame for interest rate hikes, with several officials predicting a slowdown in the federal funds rate as inflation cools.
The market has priced in two more 25-basis-point rate hikes for 2023, with a possibility of a third at the June meeting. It is crucial for investors to monitor economic indicators and Fed policy announcements carefully in these uncertain times.
The core PCE's faster-than-expected growth is a worrying indicator for investors already nervous about stubbornly rising prices. The increase in the core PCE deflator for December, which was initially reported as 4.4%, has been revised to 4.6%, showing that price growth at the end of last year was hotter than previously thought. The rise in the index is a clear sign that the central bank may have to be more aggressive than anticipated on monetary policy to combat inflation.
While some investors may be optimistic about the U.S. economy's resilience, concerns over interest rates and inflation are causing volatility in the stock market. The disconnect between the bond, currency, and equity markets is a cause for concern for some market analysts. It remains to be seen how long the current economic conditions will last, especially with the U.S. dollar strengthening in February and the two-year yield at a 52-week high.
Investors may want to adopt a market-neutral stance until the next earnings season starts. While the current pullback may be capped at the 200- and 50-day moving averages, it is important to note that revenue numbers for S&P 500 companies may have to be revised down, which is not yet factored into current market levels.
Looking at our A.I. data, I am seeing several signals I encourage readers to monitor. The $VIX is trading near the $22 level after an up-and-down week. The earnings of $BABA, $NVDA, and $ETSY this week—as well as the PCE Data—have influenced the latest move in the market. I am watching the overhead resistance levels in the SPY, which are presently at $408 and then $418. The support for the $SPY is at $400 and then $390.
I anticipate that the market will trade sideways for the next 2–8 weeks, which is why I would suggest investors stay market neutral in their positions. That said, it's important to protect oneself by hedging investments during this time frame as well. See the $SPY Seasonal Chart:
Overall, it is important to keep a close eye on economic indicators and Federal policy announcements in the coming weeks, as the bear market may continue this year. With this in mind, I have identified a specific sector and symbol from which I will be looking to profit in the coming days.
—
MY TRADING ALGORITHM HAS HELPED ME BAG 1496 OUT OF 1764 WINNING TRADES DURING THESE CHANGING TIMES
My proprietary trading system has helped me show an 84% win rate as of today… and it has been picking winners for years.
Now, I’m opening this system to a group of traders while Fed Chair Powell Trims-Inflation.
Join me during these wonderful
trading times
—
SECTOR SPOTLIGHT
Our A.I. trading system works around the clock, keeping track of the latest market developments and analyzing them with advanced algorithms. While it is a powerful tool, it is important to remember that the stock market can be unpredictable, and A.I. trading alone is not enough. At YellowTunnel, we offer cutting-edge A.I. trading software that combines sophisticated algorithms with psychological principles, allowing retail investors to trade like the pros.
Based on our analysis of the current market conditions, we have identified an ETF that presents a promising opportunity for investment in the coming days.
The Industrial Select Sector SPDR Fund (XLI) is an exchange-traded fund that aims to track the performance of companies in the industrial sector of the S&P 500 index. XLI provides investors with exposure to a diversified portfolio of companies engaged in industries such as aerospace and defense, machinery, construction, and transportation. This ETF allows investors to gain broad exposure to the industrial sector with a single investment, making it a popular choice for those seeking diversified exposure to this segment of the economy.
Investing in XLI could be a good choice for those looking for exposure to the industrial sector. With a diverse portfolio of companies spanning various industries, including aerospace, defense, construction, machinery, and transportation, XLI provides investors with a way to invest in a broad range of industrial companies. Additionally, the ETF has a relatively low expense ratio and has shown consistent growth over the years, making it an attractive option for short and long-term investors.
Looking at our Stock Forecast Toolbox 10-day forecast for XLI, we see several encouraging signals. XLI has a model grade of "A", indicating it is in the top 10% for accuracy in our data universe. Additionally, the symbol is showing a positive and steady vector trend towards the upside within the first few days of next week, which could change to even more vectors pointing toward the upside when updated on Monday.
When reviewing our Seasonal Chart for XLI, we see that all four-time frames are flashing a higher forecast, which aligns with our expectation of the symbol looking ahead. This tool is ideal for long-term forecasts and, as we have stated above, XLI appears to be in a good position for both long and short-term investors. See $XLI Seasonal Chart:
If XLI is to have a successful run, then we ought to capitalize on a symbol that will also ride this wave.
TRADE OF THE WEEK - Boeing: High Flyer!
The Boeing Company (BA) is a global leader in the aerospace industry, providing innovative and cutting-edge products and services. The company operates in several segments, including Commercial Airplanes, Defence, Space & Security, and Global Services. With a long history of successful innovation and a strong market position, Boeing stock presents a solid investment opportunity at its current price.
Sitting at around $199, Boeing has sold off in recent days and offers a discount opportunity on the stock symbol, which had a good end to 2022 and a solid start to 2023, only to falter lately. With a 52-week range of $113-$221, Boeing is showing that the stock has room for upside. In addition, the company is poised to benefit from a recovering aviation industry and increasing demand for its defense products.
When plugged into our Seasonal Charts tool, BA is showing the initial two time frames going higher and a wide gap between the annual seasonal price and the current price. These two indicators, along with our reading of XLI and the current market conditions, offer us a good sense of where this symbol could go. See $BA Seasonal Chart:
Overall, Boeing stock is a promising option for investors looking for a stable and potentially lucrative investment in the aerospace sector.
This week, I’ll be adding $BA 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:
Thank you for subscribing to my blog. Let's have a great trading week!