Which Bank Stock Is Primed For Earnings Season
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.
Bullish buying returned on Friday following a very choppy to lower week for Wall Street and the market. There has been a rolling correction throughout the past couple of weeks, even as the mega-tech stocks took the indexes to new highs, which masked the heavy consolidation underneath.
Traders have rising concerns about the virus variants, fresh regulatory actions by the Biden administration targeting transportation, technology, and healthcare, along with some trepidation about the plunge in long-dated Treasury yields and further tensions with China regarding numerous issues.
With this said, the potential for a summer correction in July has risen, especially if there is rotation back out of FAANG, which is technically extended.
CURRENT TRADING LANDSCAPE
The $SPY briefly dipped below the key short-term support level at $430. All sectors sold off this week. The reflationary stocks (energy, banks, materials, commodities, industrials) sold off the most.
The $DXY has broken above $90.60 resistance and has confirmed its breakout. The next level of resistance at $93. The $TLT continued to trade higher and the next level of overhead resistance is at $148.
Based on the steep correction in the reflationary stocks, strong dollar, and overbought technology stocks, the market is due for a correction in July. The $SPY short-term support level is at $430, followed by $425. The SPY overhead resistance is at $435.
Earnings season continues with (JPM) scheduled to announce their earnings in the next two weeks.
I would consider rebalancing the portfolio at this point to be more market-neutral. The second wave of the sell 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 5-10% from the all-time highs in the next 2-4 weeks. If you are trading options, consider selling premium with September and October expiration dates.
"BUY" signal based on the Aggressive Power Trader Portfolio for tomorrow is at $425 level using SPY and the "SELL" signal is at $431 for short-term traders.
Based on our models, the market (SPY) will trade in the range between $405 and $435 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.
Our Weekly Power Trader service continues to power up great trading profits. Each week on Sunday, 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.
Also, note that the Weekly Power Trader signals are meant to last for 5-10 days as long as the vector confirms the same direction as the original pick. For stocks, we use a target gain of 2% and stop as 2% of the stock price.
Signals have 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.
SECTOR SPOTLIGHT
Our work indicates the bond rally is overdone this past week, and as of Friday, we started to see a reversal in the yields as they ticked higher. Of the sectors that tend to be highly correlated to when yields rise, the financial sector tends to lead. Money center banks, investment banks, insurance companies, regional banks, and asset managers all benefit when rates move up, and following a sharp correction, it’s time to get long.
The Financial Select Sector SPDR ETF (XLF) is the most widely-held and widely traded ETF in the sector that presents a good entry point on the recent pullback. The top ten holdings make up almost 55% of total assets with Berkshire Hathaway (BRK-B) being the largest holding.
This line of thinking coincides with our AI-driven platform of tools that are flashing a “Higher” probability reading for XLF over the next 30 and 40-day periods. For traders, this is a beautiful setup, legging into a sector that is likely to report a parade of companies that will beat sales/earnings estimates and raise guidance.
The recent pullback in the XLF left a lot of traders in limbo as both the 20 and 50-day moving averages were violated and short-term trust was lost. But lately, XLF is looking to re-take these two short-term trendlines and re-establish the uptrend that had been so prominent during the first half of 2021.
At Weekly 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
As our artificial intelligence is flashing a short-term buy signal on JP Morgan Chase & Co. (JPM) as of Friday. As the leading money center bank with commercial and retail operations coupled with market research and a massive proprietary trading department, the company is the sector’s most important bank as a barometer.
Earnings are forecast to explode higher from $8.88 per share in 2020 to $13.20 per share in 2021. As noted above, second-quarter results will be out next Tuesday before the opening bell, and they should be stellar.
Our AI-driven Seasonal Chart gives JPM three out of four “Higher” probability readings, with the 10-day period already showing strong results with Friday’s almost 3% rally.
This is where our AI models do the heavy lifting for our trading community. Our proprietary AI tools crunch the data needed to make that distinction, creating a strong read as to whether to put this trade on or not.
There is excellent profit potential for this trade in that JPM could be a great trade as our AI indicators are now indicating higher prices ahead.
This is what our precision AI platform does for our members. It identifies, clarifies, and verifies high-quality trades like JPM. By being a member of Weekly Power Trader, it’s these kinds of opportunities that our tailor algorithms provide our members to look forward to every day they put their risk capital to work on both long and short positions.
Our Weekly Power Trader advisory service takes positions in only blue-chip stocks and ETFs that are green-lighted by my proprietary AI tools, and when confirmed, are added to the portfolio with my investment capital invested as well.
With 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 the standpoint of a Winning Trades Percentage, Average Return Per Trade, and Net Gain.
Our AI platform delivered nothing but profits during June for Weekly Power Trader members. Considering the mid-month market pull-back, this short-term performance is what makes our hard work so gratifying. We’re ringing the register all the time and this is why serious traders don’t trade without market-proven AI tools.
The consistent performance of our Weekly Power Trader service is just incredible. Our 2021 YTD stellar performance is made possible by being right on 86.47% of all trades with an average profit of 35.94% per trade. 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 over 86% of all trades are profitable should take action and 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 all the data, generating a constant stream of trades with the highest probability of generating incredibly profitable returns available to the beginning, retail, and professional traders anywhere in the marketplace today.
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, always thinking platform and make 2021 the best year on record for your trading portfolio.