Vlad’s Bitcoin Bounce Trade

Hi everyone and welcome to the Yellow Tunnel community, an aggressive short-term trading service dedicated to all classes of traders seeking to elevate their trading skills, market awareness, and trading profits. 

All eyes and ears were on Fed Chairman Jerome Powell’s Jackson Hole speech Friday and he threaded the needle of narrative and optics that the market was hoping for, sending stocks to record highs. 

In his text, Powell stated, “Substantial further progress has been met for inflation; says there is progress toward that goal on employment; if the economy evolved broadly as anticipated, it could be appropriate to start reducing the pace of asset purchases this year.”

 "There has also been clear progress toward maximum employment. At the FOMC's recent July meeting, I was of the view, as were most participants, that if the economy evolved broadly as anticipated, it could be appropriate to start reducing the pace of asset purchases this year.”

Powell noted the spread of the Delta variant and how the Fed will carefully assess income data that includes inflation numbers, retail sales, employment figures, and consumer sentiment before the next FOMC meeting on Sep. 22. He also made clear that winding down QE would not imply the raising of the Fed Funds Rate. 

“The timing and pace of the coming reduction in asset purchases will not be intended to carry a direct signal regarding the timing of interest rate liftoff, for which we have articulated a different and substantially more stringent test.” 

“We have said that we will continue to hold the target range for the federal funds rate at its current level until the economy reaches conditions consistent with maximum employment, and inflation has reached 2 percent and is on track to moderately exceed 2 percent for some time. We have much ground to cover to reach maximum employment, and time will tell whether we have reached 2 percent inflation on a sustainable basis.”

Call it a relief rally of sorts, because as noted in bold font above, he worded his statement about tapering as “could be appropriate”, leaving the door wide open for a continuation of QE without any specific target date of reducing the $120 billion per month in asset purchases that have kept bond yields at historic lows. 

TRADING LANDSCAPE  

The $SPY pulled back to the key short-term support at $445. The $DXY has broken above $90.60 resistance and has confirmed its breakout. The next level of resistance is at $94. The $TLT traded lower on the week as bond yields popped higher.   

Based on the steep correction in the reflationary stocks, strong dollar, and overbought technology stocks, the market will continue the correction in August/September. The $SPY short-term support level is at $445, followed by $441. The SPY overhead resistance is at $450.    

I expect the next stage of correction to resume this week or next. I would be a buyer of value stocks on corrections and sell technology stocks on any rallies.

I would consider rebalancing the portfolio at this point to be more market-neutral. The second wave of the sell-off will continue for the next 2-4 weeks.  Market corrections are never a one-way trade. 

Based on our models, the $SPY can pull back 5-7% from the all-time highs in the next 2-4 weeks. If you are trading options consider selling premium with October and November expiration dates.

"BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at $443 level using SPY and "SELL" signal is at $448 for short-term traders.   

Based on our models, the market (SPY) will trade in the range between $415 and $450 for the next 2-4 weeks.    

NEW WEEKLY DYNAMIC POWER TRADER SERVICE 

We recently launched our new Dynamic Power Trader service that we at Yellow Tunnel are 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. 

What makes this new service so special is that 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.

Signals have historically averaged over 86% accuracy in my live trading since inception. Sometimes we hold position 2-5 days by using options (selling OTM BULLISH PUT 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 color 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 Aggressive 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 enter 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 stock price. I target 75% accuracy using these signals.

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 OTM put (strike less than 100) with option BID price close to $0.5.

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SECTOR SPOTLIGHT 

Cryptocurrencies have staged a remarkable comeback this month, even as China has cracked down on the use of cryptocurrencies, regulatory issues in the U.S., and wide-open criticism by Minneapolis Fed President Neel Kashkari calling “crypto 95% fraud, hype, noise, and confusion. But when you’re in the business of printing trillions of dollars of QE, then of course one would expect Kashkari and the rest of the Fed to talk down cryptocurrencies. They need big buyers of dollars and crypto is a direct competitor. 

But to be clear, cryptocurrencies are highly desirable in developing countries where the local currencies don’t trade well against the dollar, or the currency of the burgeoning Non-fungible Token (NFT) marketplace and investors seeking an alternative to gold as a storehouse of wealth and hedge against the steady devaluation of fiat global currencies due to ballooning debt loads.

From the table below, Bitcoin dominates the cryptocurrency world with a market cap now above $900 billion. However, there are strong proponents of Ethereum that argue it will be the de facto digital currency of choice for the wider uses of blockchain technology whereas Bitcoin is viewed more as an investment. Both are proving to be winners along with some of the emerging smaller cryptos as well. 

Source: www.coinbase.com

There is now a whole host of ETFs that track single cryptocurrencies and groups of currencies as Wall Street was not about to be left out of the crypto bonanza. 

At Weekly Power Trader, (or Dynamic Power Trader) we apply our custom proprietary AI algorithms to all market trends and scenarios where even when it appears the conventional thinking is in the right position, it can turn adversely against the herd mentality in a hurry, just as has happened recently. 

TRADE OF THE WEEK

Of all the choices traders have in the universe of digital currencies, aside from trading the currencies themselves, the prominent trading vehicle used in conventional brokerage firms is the Grayscale Bitcoin Trust (GBTC) that sports a market cap of $30.2 billion with an average daily volume of around 6 million shares.

GBTC’s investment objective is for the value of its shares to reflect the value of Bitcoin held by the Trust. However, GBTC tends to trade at a premium or discount to such value, which at times has been substantial, depending on sentiment. 

When we apply our proprietary AI models to GBTC, our Forecast Toolbox gives GBTC high marks where the 6-month Predicted Resistance price point is $49.10 or almost 40% higher than where the shares currently trade. This uptrend will afford us multiple opportunities to trade GBTC from the long side for weeks and months to come. 

Getting the right entry and exit points is the key to successfully trading a volatile asset like GBTC and is why having the power of AI tools is absolutely essential.

Shares of GBTC have retaken their 200-day MA and are putting in a series of higher lows, a bullish pattern that typically leads to a renewed uptrend. 

This is what our precision AI platform does for our members. It identifies, clarifies, and verifies high-quality trades like a clear and newfound uptrend in stocks like GBTC. By being a member of any one of our services, it’s these kinds of opportunities that our proprietary algorithms provide our members to look forward to every day, where they can put their risk capital to work on both long and short positions. 

Through our services, we tie our Tradespoon Live Trading Room to manage the parameters of every trade. And we update our closed positions daily. The two platforms work seamlessly to provide our subscribers with the most robust trading experience available anywhere in the market today. 

The beauty of our AI-driven system is that we are always equipped to bring new trades to our members. Trades in best-of-breed stocks and ETFs that are not yet recognized by the larger universe of traders. 

We really pride ourselves on this kind of discovery process, to bring trades with very high probability risk/reward parameters to members throughout each week. Our track record speaks for itself from a standpoint of a Winning Trades Percentage, Average Return Per Trade, and Net Gain.

Considering the choppy landscape of late, we’re taking advantage of market dislocation and valuation distortion. We’re striving to help our members ring the register all the time and this is why serious traders don’t trade without market-proven AI tools. 

The consistent performance of our services is just incredible. Our historical stellar performance is made possible by being right on 86.47% of all trades that we made with an average profit of 35.68% 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. 

Once you’ve become a member of any of our services, I highly encourage you to view the instructional videos on how to best use your membership and participate in live weekly strategy roundtable workshops that are also archived in the event that they need to be viewed at a later time.

Traders seeking the most-timely directional trading strategies where historically over 86% of all trades are profitable to come alongside the Yellow Tunnel community and make one of our services your go-to AI trading platform for no-excuses performance.

Our AI platform crunches and analyzes thousands of proprietary performance indicators to help identify the next big trades to supercharge your portfolio!

Go to our website at www.yellowtunnel.com and make one of our services your default trading system where the AI that power my all-world, proprietary platform, that can help you make 2021 the best year on record for your trading portfolio.