Brush Up On This Trade Today
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.
The see-saw of value versus growth continues to fuel a perplexing trading landscape where very mixed and uneven economic data has the Fed putting out fuzzy FOMC notes that are worded with “maybe taper, maybe not” language. In the past two weeks, traders have received bullish reports regarding labor, leading indicators, and manufacturing. At the same time, negative reports of consumer sentiment, homebuilder sentiment, retail sales, and hotter-than-forecast inflation have circled the market in yellow caution tape.
As of Thursday, there was a fairly decisive move by fund managers to camp out in big-cap tech, because that’s what they know most about. They feel safe there even though the sector is overbought. The spread of the delta variant is another concern, but also the rising notion that the vaccines used to date have an efficacy life of less than 6-8 months, with the government now pushing booster shots that have limited scientific research to support their effectiveness.
But what traders do know is that businesses are functioning quite well, especially companies that dominate their space. This was revealed by the very robust second-quarter earnings season highlighted by those companies within the financial, industrial, transportation, materials, chemicals, and agriculture sectors. More revealing was that the leaders of these respective sectors almost universally raised third quarter and full-year guidance that fueled a sharp rally followed by this past week’s sharp pullback.
To that point, the Covid-19 data as noted by former CDC Director Scott Gottlieb will peak by Labor Day, and if he is right, then value stocks will make another stand that could morph into a fresh uptrend. I know this theme is counterintuitive to the current rhetoric, but the real money is made when real fear is in the air. Thus, the short-term fear factor that the market is enduring should climax in the next two weeks and offer up a compelling buying opportunity for the leading value stocks that fund managers favor.
What this simply means is that stock picking is at a premium and where the power of AI models in our Weekly Power Trader advisory service becomes so valuable.
TRADING LANDSCAPE
The $SPY traded in the range between $435 and $441. The value/reflationary stocks sold off today. Technology stocks rebounded from the recent sell-off on the spike in treasury prices.
The $DXY has broken above $90.60 resistance and has confirmed its breakout. The next level of resistance is at $94. The $TLT has resumed its upward momentum.
Based on the steep correction in the reflationary stocks, strong dollar, and overbought technology stocks, the market will continue the correction in August. The $SPY short-term support level is at $435, followed by $422.
The SPY overhead resistance is at $445. 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 selling 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 $433 level using SPY and "SELL" signal is at $441 for short-term traders.
Based on our models, the market (SPY) will trade in the range between $415 and $445 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 positions for 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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Dear Subscriber,
Instead of telling you what to do (after I trade)… I will show you what I do (real-time).
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.
As a Lifetime Subscriber, you can see my trading updated LIVE so that you can Do-As-I-Do and even copy my trading strategy.
From, January 2020 to this writing, my total return on risk is an astounding 1324%. I’ve made 1114 trades since then with 86.54% of them have made money.
There are even ways I alert you immediately when I’m making a trade, so you can watch me do it live.
Let me explain Lifetime Membership’s huge discount more to you by clicking HERE.
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SECTOR SPOTLIGHT
My AI models are flashing some buy signals in the materials sector where the ETFs and stocks have been consolidating for a couple of weeks following an impressive showing of second-quarter results. The eventual passage of the infrastructure bill puts a long-term demand-pull equation factor well into the sector as does the general rebound for the broader economy.
The Materials Select Sector SPDR ETF (XLB) is my favorite way of casting a net over the hottest set of stocks in the sector to alleviate single stock risk. This ETF has pretty good price action as well, ideal for traders looking to trade in and out of ETFs. The top holdings are well-known and broadly owned names.
What’s even more compelling is how our AI-driven platform has confirmed the timeliness of putting XLB on our watch list for actionable trading strategies that we are apt to put out in the week ahead. The Forecast Toolbox is flashing a Mode Grade “A” rating, implying a very strong risk/reward ratio for trading XLB from the long side in the days and weeks ahead.
With the shares of XLB trading at $83.50 and a Predicted Resistance price target of $90.58, this looks to be a high-quality trading strategy that meets our criteria.
With our services, 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
Sherwin-Williams Co. (SHW) is the second-largest holding in XLB and is benefiting greatly from the super-cycle in-home building and remodeling. The company is the leader in the manufacture and distribution of paints, coatings, and related products to the commercial and retail markets.
The future of copper is nothing short of huge. Copper is vital to the growth of smart homes, smart cities, electric vehicles, renewable energy, and advanced manufacturing on a global scale.
The company is forecast to see revenues increase by 11% this year, to $21 bln and earnings to come in around $9.40 per share, representing 14.60% year-over-year growth. America’s infrastructure definitely needs a fresh coat of paint and with the passage of the infrastructure bill on deck, these numbers will only be adjusted higher by the 28 analysts that cover the stock.
From the 3-month chart above, one can see that $300 is a level that has served as a support level. This latest pullback is on light volume and sets up the stock well to push back up towards its 2021 high of $310 and try higher in the months ahead.
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 Sherwin-Williams. 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 86.54% of all trades that we made with an average profit on the risk of 36.04% 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 powers my all-world, proprietary platform, can help you make 2021 the best year on record for your trading portfolio.