Bank On This 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.
The split personality of the stock market has taken yet another turn back to favoring the reflation stocks. Only a week ago, the yield on the 10-yr Treasury was looking at if it would trade below 1.0%, which would have been a bad harbinger for most stocks, as it would imply a sharp economic slowdown was just up ahead – the delta variant being the culprit.
As it turned out, a powerfully strong jobs report and the notion of a done deal for the $1.1 trillion infrastructure bill triggered bullish sentiment where bond yields rose, as did all sectors most leveraged to an economic rebound. A lot still has to happen in Congress to pass the bill that the House Majority Leader wants to tie together to the larger $3.5 economic plan for passage, but the perception is that big spending on the economy and people is coming before year-end.
There is also the growing feeling that the delta variant spread is peaking in the most hard-hit states coupled with the move by the CDC to approve a third booster shot for those vaccinated people with underlying conditions. Add to this a higher-than-forecast Producer Price Index reading and a negative advance/decline lines for both the NYSE and the NASDAQ and were pretty much at the same place as we were a week ago.
Big cap mega software stocks reared up on Thursday to offset a broad decline in the semiconductor sectors after Micron Technology Inc. (MU) traded sharply lower on a well-respected analyst downgrade. It’s as if the market really can’t make up its mind where stock picking is at a major premium and where the power of our AI models in our Weekly Power Trader advisory service is crucial to guiding where to invest.
TRADING LANDSCAPE
There are more technical cracks in the body of the rally that invite the probability of a normal correction occurring by month-end. The $SPY continued to make incremental gains. The value/reflationary stocks paused Thursday as technology stocks closed higher. The $DXY has broken above $90.60 resistance and has confirmed its breakout. The next level of resistance is at $93. The $TLT pulled back and has more room to the upside (lower yield) short-term.
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 $430. 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 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 $441 level using SPY and the "SELL" signal is at $445 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 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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Dear Subscriber,
To be clear, I wasn’t excited to see the Delta variant extend the pandemic. Many, many lives have been negatively affected by the COVID-19 pandemic.
The world and the market are changing drastically, I am about to put my trading algorithm to the ultimate test.
You see, it’s easy to make money in a bull market - and we were in the middle or maybe near the end of a historic run.
I spent years building a sophisticated, proprietary trading algorithm that would be immune from overall market performance.
And here’s the best part: when you click here, you can join me for the next 30 days...
Wishing you and yours the very best,
Vlad Karpel
Chief Investment Officer and Founder
P.S. Click here, to join me for the next 30 days...
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SECTOR SPOTLIGHT
As traders try to sort out the growth versus value debate, my AI models are flashing buy signals for the financials. Bond yields sprinted higher and the bank sector remains under-owned by large institutional fund managers still camped out in growth stocks. The full conviction of the investing public is just not there yet for the financials – not after seeing the 10-yr Treasury yield dip to 1.12% just a week ago.
But the lack of conviction is fast to change when this sector starts adding to this past week’s gains. Money flow is good, inflationary data bodes well for higher bond yields and strong operations in lending, trading, investment banking and credit underpins a robust base for bullish future earnings results in the current quarter and beyond.
The Financial Select Sector SPDR ETF (XLF) traded to a new all-time high and tells the tale of the tape where money rushed into the sector this past week that smacks of an epiphany of FOMO. Such a powerful move is to be respected, where any pull back is considered a viable entry point to participate in this breakout move higher.
In a fickle market, where sticking with the highest-quality stocks makes the most sense, traders may want to cast a net over the biggest names in a collective manner to reduce single-stock risk. Top holdings in XLF include the following stocks:
What’s even more compelling is how our AI-driven platform has confirmed the timeliness of putting XLF on our watch list for actionable trading strategies that we are apt to put out in the week ahead. The Forecast Toolbox gives XLF an “A” Model Grade Rating that implies higher prices yet ahead at the proper entry points for short-term profits. Trading breakouts are lucrative if traded in a disciplined fashion. This is where our AI tools are most valuable so as to provide precision buy and sell points.
At YellowTunnel, 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 adverse against the herd mentality in a hurry, just as has happened recently.
TRADE OF THE WEEK
Goldman Sachs Group Inc. (GS) is the clear leader in the financial sector breakout. As a Dow component, the stock has proven to be the go-to name in this rally within the financial sector. Huge profits from proprietary trading, M&A and institutional asset management are driving earnings sharply higher in the current environment.
What sets Goldman apart is its draw to get the biggest deals done on a global scale. Be it mergers, stock offerings, financings or the gathering of AUM from uber-wealthy investors, Goldman still retains the title of champion among investment banks.
When we apply our AI Seasonal Chart to the chart of GS, we have “Higher” probability readings for the next 20 and 30-day periods. This is a powerful confirmation signal for traders to work off of where any dips in share price deserve to be bought in the month ahead. Knowing exactly where those price points are is what our AI platform provides to members of Weekly Power Trader.
With money flow starting to pour into the financial sector, the spotlight is clearly on GS for further leadership and that is why we only trade the first-tier names that matter most to the largest pools of money around the globe.
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 Goldman Sachs. 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 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. In just the past three weeks, our Weekly Power Trader subscribers have really cashed in on a streak of winning trades with only one small loss in the mix.
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