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.
Markets have demonstrated that the bullish camp isn’t ready to throw in the towel, even though inflation, higher interest rates, soaring commodity prices, a hawkish Fed, and geopolitical risks are at work against the long-term primary uptrend.
It’s a bullish tell when the market can rally against these stiff headwinds as capital flows out of bonds need to go somewhere, and with cash-generating a negative return in absolute terms, money is finding its way into equities, which historically are a good inflation hedge.
CURRENT TRADING LANDSCAPE
As of Thursday’s close, the $SPY closed lower 1.5%, at $451, above the 50 DMA and the 200 DMA. The value/reflationary ($VTV) closed lower 1.5%, at $147, below the February highs. The technology sector ($QQQ) closed lower 1.24%, at $362, between the 50 DMA and the 200 DMA.
The $DXY closed higher, near the $98.5 level, at the June 2020 high. The $TLT closed higher 0.2%, at $132, and below the 2020 lows. The ten-year yield closed lower at 2.33%. The $VIX closed higher near the 21 levels, right above the historical average.
The $SPY short-term support level is at $451, followed by $440. The SPY overhead resistance is at $465 and then $470.
Assuming the geopolitical risks in Ukraine have reached the status quo, it is reasonable to assume that the $SPY February low is set and the pattern of higher highs and higher lows will continue in the next two to six weeks. The market has reached extreme overbought levels and is due for a 2-5% pullback in the next 10 days.
I would be a buyer of the low beta stocks into the pullbacks and have a market BULLISH portfolio at this time.
I do not expect the $SPY to post new all-time highs in the first half of this year. There is a high probability that the $SPY main long-term support at $415 is now set but might be retested in the next few months.
The "BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at the $451 level using SPY, and the "SELL" signal is at $463 for short-term traders.
If you are trading options, consider selling premium with May and June expiration dates.
Based on our models, the market (SPY) will trade in the range between $415 and $470 for the next 2-4 weeks.
NEW EARNINGS POWER TRADER SERVICE
We recently launched our new Earnings 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.
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.
Signals have historically averaged over 85% accuracy in my live trading since inception. Sometimes we hold position 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 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 the 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 an OTM Put (strike less than 100) with an option BID price close to $0.5.
Earnings Season starts Wednesday, April 13th and the first to announce its earnings is JP Morgan.
The last time we traded JPM on November 29th we had a 199% return on risk.
Let me repeat that, we had a 199%** return!
That's a pretty good return after holding the position for only 6 and 7 days!
Be prepared: JP Morgan (JPM) is scheduled to announce its earnings on April 13th.
This is my favorite time of year!
Hardly a day in the market goes by where another headline crosses the tape about something exciting happening in the electric vehicle industry. The pace of adoption of EVs and the future of autonomous driving capabilities is truly one of the most promising investment themes available to traders, given the amount of attention generated from the sector.
There is an abundance of opportunities in multiple car makers, charging station operators, semiconductor and commodity stocks that all have great potential to reward traders, while at the same time, much of the smart money that trades in this space will trade the EV and self-driving ETFs that reduce risk and still afford plenty of volatility to profit from the sector.
One such ETF that is a preferred trading vehicle is the iShares Self-Driving EV & Tech ETF (IDRV). With $590 million in assets under management invested in 122 holdings, this ETF has all the heavyweight names that stand to rule the self-driving industry as it matures. The top ten positions account for about 44% of total assets.
Our trading system relies heavily on artificial intelligence, our proprietary algorithms that power our AI platform and its tools provide traders with a major edge in determining the level of conviction one can have on long and short trades. In the case of IDRV, when we apply our AI-driven Forecast Toolbox, we get a 10-day Predicted Resistance price target of $50.57, implying a solid move higher from its current price of $46.20.