Pumping Profits: #1 Inflation Trade Is Enclosed
Hi everyone and welcome to the Yellow Tunnel community, a family of trading services dedicated to all classes of traders seeking to elevate their trading skills, market awareness, and trading profits.
The second-to-last Federal Open Market Committee meeting of 2022 took place this past week and as expected, interest rates were hiked 75 basis points. Earnings season is primarily behind us, with only a few notable names left to report and the latest employment data offered insight into the current labor field. Next week, the market focus turns to the ongoing midterm election as well as CPI data which will inform the latest on inflation.
At home, Halloween kicked off the week on Monday as I got to take my youngest son trick-or-treating. As we made our way through the neighborhood, I began reflecting on how different Halloween has looked over the years. Walking with my wife and our son, our trick-or-treating crew has certainly shrunk with my eldest kids aging out of the desire to spend Halloween with their parents.
This was cemented the Saturday before as we held our annual Halloween party. In previous years, our house was filled with our closest friends and family, bringing their dressed-up kids to celebrate. Now, the number of children has dwindled as more kids head off to college, become more interested in their own Halloween parties with friends, or are simply uninterested in dressing up.
As we made our way through the neighborhood and I reflected on these two dwindling events: Halloween parties and trick-or-treating. These events that have come in and are now on the way out of my life reminded me of a stoic philosophy I once read: Negative Visualization.
Imagine the last time.
One day, my son will be uninterested in trick-or-treating. One day, it will be the last time we make this walk through the neighborhood- pumpkin bucket in hand, fully costumed. While I am no fan of dressing up, and at times do find the Halloween festivities and crowds a bit much, the thought of not spending Halloween this way was bittersweet.
Entering parenthood, Halloween re-entered my life and became a staple in the fall. The long second-life Halloween had in my own life would soon come to an end and while that thought and that moment presented itself as inherently sad, the utility and a key part of this stoic philosophy is the after-affect.
Suddenly, making our rounds on Halloween night was a much more enjoyable process. I wanted to cherish every moment of it. Ring every doorbell with my kid and stay out as long as he wants. If one day we won't be spending time this way, then this time has no place for anything but my total presence and attention. At that moment, it didn't matter how annoying the crowds got or how tired of walking I was- I wanted to be there fully and make the most of the current opportunity.
And that's a thought I like to remind myself when I can while trading. The upcoming Fed decision in December will be its last of 2022. Perhaps it could be the last super-sized hike we see. Perhaps it could be the last FOMC we see before the recession. Perhaps the previous 75 basis point hike was already the last super-sized hike. Exercising these scenarios offers me insight into a deeper understanding of how I can and would handle the market.
While predicting when my final trick-or-treating with the kids would happen might be easier than predicting what the market will do, both are prudent exercises. Thinking through how one would react in multiple scenarios can only strengthen the understanding of one’s self and the task at hand. If a recession comes, this negative visualization could prepare you for and propel you toward a better understanding of how you would act in such a scenario.
This is exactly the type of exercise and thought experiment we utilize at Yellowtunnel, along with ground-breaking A.I., to navigate through the ever-changing market landscape. At the same time, we are providing a trading community to bounce ideas off of and share strategies.
That is one of the main reasons why I started our YellowTunnel trading community, where you can discuss and dissect together. And this is exactly what we did in my latest Strategy Roundtable, which we hold weekly on YellowTunnel. I recommend checking out our latest Roundtable webinar in its entirety below:
How To Trade a Bear Market Strategy Roundtable
With the unpredictable nature of the market and the uncertainty ahead of us, I can’t emphasize enough how vital it is for our readers and members of the Yellow Tunnel community to keep referring to our Live Trading Room so as to maintain a close tie of how our I and my AI platform is navigating us in and out of select trades. It’s FREE and I highly encourage everyone to sign up for the Live Trading Room and keep checking in throughout the trading day.
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I also want to emphasize to traders how vital a stop-loss discipline is to winning and being successful in an unforgiving market. We employ specific stop-loss instructions with every trade. The buy and sell programs controlled by high-frequency related algorithms can create great profits or cause sudden losses, so it is imperative to maintain an element of controlling risk with each trade.
NEW EARNINGS POWER TRADER SERVICE
I recently launched our new Earnings Power Trader service, which I am 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. Click here to learn more.
Signals have historically averaged over 85% accuracy in my live trading since inception. Sometimes I hold positions for 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 Earnings 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 entered 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.
A 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.
CURRENT TRADING LANDSCAPE
After a tumultuous start to the week, Wednesday and Thursday brought more of the same as markets plummeted following the Fed's decision. The main news this week surrounded the Federal Reserve's policy update and key employment data which caused markets to fluctuate and trade lower. Additionally, earnings season is still underway which also impacted market movement.
On Wednesday, Fed Chair Powell announced the fourth consecutive interest rate hike, pushing rates up to levels they haven't seen in years. The Fed hiked its rate by 0.75 percentage points to a range of 3.75% to 4%, while also making it known that any potential damage done by the abruptness of these hikes will be monitored closely. Powell said that although the Fed has been hiking interest rates to fight inflation for a while, there may be more increases in the future. However, he suggested that after increasing rates multiple times over the past year, the Fed may start tapering off how often it raises them.
During his press conference, Powell also said that it would be too soon to consider stopping the increase in rates. He added that the target for policy rate increases might be different from what investors expected, causing shares to drop throughout the market.
Also on Wednesday, the ADP employment data for October revealed that the private sector added 239,000 jobs, exceeding expectations. Even though the report states that pay growth decreased slightly, the labor market still seems to be thriving after impressing in two consecutive months. Still, this was not enough to support markets through the mid-week selloff.
On Friday afternoon, stocks rallied back into positive territory after an employment report showed that the U.S. economy added 261,000 jobs last month--exceeding the forecast of 205,000 new jobs. The unemployment rate ascended to 3.7% from 3.5%, decreasing the labor force slightly, as reported in the unemployment report released on Friday. Although mostly supportive, the employment data do not appear to be enough to deter the Fed from reevaluating their anticipated rate hikes.
As of Friday, the 5-day chart shows the $SPY was trading 2.65% lower, near $376. The S&P 500 is up 1.44% on Friday, with the Nasdaq and Dow also seeing gains greater than 1%. The $VIX started the week near $27 but now sits closer to the $25 range.
As we approach next week's midterm election, the market is showing support. Clarity around politics traditionally improves the stock market, and it seems this election will be definitive in who takes majority control.
Because of this, the market has the potential to rise for several weeks. Since it reached its most recent lows, as long as it trades above the annual low, there is more opportunity for growth than decline. After rising inflationary pressures in July and August, the market rebounded into a multi-week rally. As long as SPY trades above recent lows, the market has the potential to continue growing.
I am keeping an eye on the SPY's overhead resistance levels, which are $390 and $400. The support for $SPY is currently projected to be at $374 and then $367. Based on my observations of the market, I believe that there is a chance for it to grow stronger in the next 4-8 weeks. Still, the short-term market appears to be overbought and could experience some pullbacks. In the event of any further market sell-offs, I would be a buyer, and I advise subscribers not to try to chase the market to the downside or upside.
Several sectors are on the rise as investors' focus shifts from the Fed decision to the upcoming midterm election. There is data that suggests market retraction ahead; however, I believe there is one sector that could withstand any pullback. Looking deeper into the sector, my A.I. models identified a great opportunity for one symbol in the coming weeks - more on that in a minute.
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The markets have been all over the place.
And with worldwide uncertainty, wars, and rampant inflation, volatility just keeps increasing.
Traders are being more cautious — not knowing what will
happen next.
Me? I’ve made 1637 trades since the beginning of 2020 to
today… and 85.03% of them have made money.
While I’m not taking on unnecessary risks or being careless with my money, I’m still making the same trades I always have.
Click Here To Join Me
(A portion of Yellow Tunnel sales will go to directly help the Ukrainian people)
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SECTOR SPOTLIGHT
After the Federal Reserve's latest announcement, stocks dropped sharply, providing a window of opportunity for certain sectors to stage multi-session rallies. When it comes to investing, prosperous sectors reveal themselves based on recent market news and historical patterns. Specifically, I have been closely monitoring energy and oil prices since their multi-year highs this summer, and I believe there is presently a good opportunity for investors.
For anything energy related, I always go to The Energy Select Sector SPDR Fund (XLE).
The fund, with assets of nearly $40 billion, allows investors to access the oil, gas, fuel, and energy services industries. The fund is the primary energy ETF within the S&P index, and I believe it adequately represents the sector.
Looking at a 52-week range of $51-$93, XLE is coming off its latest highs but remains above key support levels. Displaying a model grade "A" in the Stock Forecast Toolbox's 10-day forecast, this symbol is in the top 10% of accuracy within my model's data universe. When reviewing its 6-month forecast, XLE is showing a promising trend toward the upside with a steady vector towards the upside.
While XLE is showing great trends to continue building higher, I am going to look within the sector to find one symbol, I believe, should have a great runaway as we wrap up 2022.
TRADE OF THE WEEK
ExxonMobil Corporation (XOM) is a leader in the oil field and, as of lately, has been showing some great signals following its latest earnings report.
XOM is one of the largest oil distributors in the U.S., and just like the rest of the energy sector, saw a fairly volatile 2022. The stock has been climbing since early this year, with a few hiccups after breaking new 52-week highs. Based on current trends, I think we could see something similar happen again soon.
With over $462 billion market cap, Exxon holds a dominant space in the energy sector and has proven to easily form new highs. The past few weeks saw the symbol move higher and as history has shown us, the energy sector could be in line for a great finish to 2022.
Looking at the 10-day forecast for XOM, the symbol both sports a top accuracy grade of "A" and a positive vector trend moving higher. Forming new highs, this symbol has an opportunity to best its 52-week high and if additional boosts to the economy occur, like the midterm election, the symbol could rally impressively.
Looking at the Seasonal Chart of XOM, seen below, the symbol is showing a historical trend, with its annual price, on the upswing. Similarly, with the gap between the seasonal level and the current level, XOM has the opportunity to define new highs as we saw it do just within the last year.
This week, I am getting Exxon Mobil Corporation (XOM) involved in my portfolio.
Discovering this trade is precisely where AI technology comes in handy. We connect our Live Trading Room to YellowTunnel in an effort to assist you in managing the current inflationary trend. We keep our positions updated on a regular basis and our AI system seamlessly integrates with our platform to give our customers the most comprehensive trading experience available today.
The beauty of our AI-driven system is that we are always equipped to bring new trade ideas to our members. Trades in best-of-breed stocks and ETFs that are not yet recognized by the larger universe of traders.
And our track record speaks for itself from the standpoint of a Winning Trades Percentage, Average Return Per Trade, and Net Gain.
The consistent performance of our services is just incredible. My historical stellar performance is made possible by being right on 85.03% of all trades that I made, with an average profit of 37% 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.
Traders looking for a more timely approach to trade should join the YellowTunnel community, where nearly 85% of trades were profitable, and utilize one of our AI trading platforms for no-excuses Trading. Our AI platform breaks down and analyzes hundreds of proprietary performance indicators to help you get the edge on 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, the proprietary platform, can help you make the last quarter the best of the 2022 trading portfolio.
Have a fantastic week, keep Ukraine in your thoughts and prayers, and let's make some great money together.
One more thing, I've had the opportunity to take additional action with a great organization supporting families in Ukraine directly. Gate.org is a foundation where fundraising is held for specific families, allocating funds to multiple families currently living in Ukraine. I am on the board of directors for this great initiative and encourage everyone to check it out and donate if possible. The war in Ukraine is escalating and families are being negatively impacted and displaced daily. To learn more about this initiative to help families, please see the link below: