Alert! Short $SPY
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.
We're back from Croatia! Spending time abroad is always a great experience: expanding our horizons, trying new things, and exploring the unique beauty this world has to offer are both fulfilling and inspiring affairs. We enjoyed our trip tremendously and I wouldn't take anything away from it, however, there is nothing like the comfort of home.
Returning to Chicago, it was great to see familiar faces and places, and even furthermore, I was elated to return to weekly routines and family matters...
…our oldest daughter is currently a sophomore in high school, a pivotal year where kids begin to drive themselves and college considerations begin to play a factor. Exams begin to hold more weight and new responsibilities are presented. To add to all of that, there is also the social aspect of it which nearly, and understandably, dominates teenagers' idea of self and day-to-day activities. As much as my wife and I want to help her understand how fleeting these feelings are and where true importance lies, we know better, our teenage years were at times painful too.
Mounting anxiety about exams and college, what people think of her, and additional high school concerns and insecurities produce the typical teenage impact.
One solution I offer that I hope she adheres to is to concentrate only on her own thoughts and actions. Everything beyond is filled with uncertainty and beyond your control. Stressing about oncoming ACT might alert her to the fact she has an exam coming but in no way prepares her for it. What does prepare her for it is reviewing her notes, studying the material, and taking practice exams.
What could deter you from that, apart from and likely fueled by anxiety, is an unstable hierarchy of needs. These are the fundamentals of life that fuel us all: Nourishment and routine, good sleep, healthy food, stable family life, and productive habits are the base levels of a grounded lifestyle- from which we build.
Whether achieving a high ACT score or profits from your portfolio, these things don't happen by accident. Routine is key. Instilling strong habits will lead to great structure, from which you can grow. Eating well provides fuel for your day-to-day that won't leave you sluggish, and sleeping well should do the same. Finally, breathing exercises can help center you or combat anxiety when uncertainty or stress presents itself.
Applying this to our world of finance, these are the tools I use to control what I can during changing times.
It's difficult predicting CPI or how the market might respond. Fed meetings, while we expect certain outcomes, are also a variable outside your hands. But what you can control, and what I try to control is my trading plan. Keeping a certain amount of cash, maintaining an appointed number of positions, and appropriate position size are just a few of the things I do to become the best trader I can be.
This is exactly what we do during my YellowTunnel webinars. I go over my trading plan and market outlook on a weekly basis in my roundtable webinar, hosted every Thursday on YellowTunnel. Trying to keep up with the market by oneself can be overwhelming. That is why I encourage you to join a trading community where you may interact and analyze with others. 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 to the Live Trading Room and keep checking in throughout the trading day.
Every Monday and Wednesday, I highlight our best strategies and potential trading setups via the DISCORD server. It’s the future of bringing together a trading community’s total services, educational products, live chat venues, support, news, how-to tutorials, webinars, live-trading demonstrations, and tons of market analysis. It is incredibly interactive and full of crucial and timely information. Just go to:
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.
CURRENT TRADING LANDSCAPE
This week we received two key inflation readings that dictate market direction. First up was the Consumer Price Index data released on Tuesday.
The U.S. CPI report showed an unexpected increase of 0.1% in August, compared to economist estimates of a 0.1% decrease. On an annual basis, the inflation rate grew by 8%, which was slightly lower than expectations of 8.3%. The core rate, which is a separate reading that eliminates volatile food and energy costs, increased 0.6% over the past year, outpacing forecasts for a 0.3% monthly increase and a 6.3% yearly growth rate. With the core inflation rate rising more than what was anticipated, major U.S. indices were sent to their worst daily losses since June 2020.
The market improved on Wednesday a little bit after the Producer Price Index was revealed and showed that prices for wholesale goods and services went down again, which is the second month in a row. The August producer PPI report saw a 0.1% decline last month due in large part to fuel costs. Core PPI, which is an index of wholesale prices that excludes volatile food and energy items, went up by 0.2% in August. The two reports offered a mixed reading of inflation which, unfortunately, could prolong inflation; wages, rent, and food in the latest reports were noted to be also increasing but were bailed out by gas prices which dropped significantly after spiking in the summer.
Finally, to round out the week in economic reporting, August retail data was released on Thursday. According to the new retail survey, economic expansion was steady but unimpressive throughout the summer, with a 0.3% increase in August as Americans spent more money on new automobiles and eating out.
Despite a stronger employment market, consumer spending in the United States is still steady. Americans continue to spend money, although it is largely due to the higher costs they are paying as a result of rising inflation. For the past year, retail spending has remained virtually unchanged when adjusted for inflation.
On Friday, the $SPY sold off, trading near $384 after hitting 406 last Friday. Five-day results for the SPY showed a 6.35% decline, similar to that of the QQQ weekly performance which was -7.08%. The technology sector ($QQQ) was trading near $288 on Friday.
The $DXY traded marginally lower on Friday, near the $109 level. The volatility index (VIX) traded as high as $28 this week but concluded the week near $27.
Looking at the current trading landscape, I believe the market is oversold and has the potential to retrace some of its previous losses. The market has started its next leg down and could make marginal lows as early as this month or the start of October.
As it stands, I would be a seller into any future rallies, and I advise subscribers not to chase the market at these levels. Overhead resistance levels in the SPY are presently at $404 and then $416. The $SPY support is at $390, and then $380 and I anticipate the market to continue its retreat for the next two to eight weeks. See SPY Seasonal Chart below:
Following the inflation-related reports this week, all eyes now turn to next week's Federal Open Market Committee. The majority of market watchers have factored in a 75 basis point increase for this upcoming meeting. As the Fed has vowed to combat inflation at all costs and some are even considering a 75-point hike in the November FOMC as well.
With the high risk of over-tightening, fears of higher inflation than expected, and a recession that could follow as soon as next year began to build. While the Fed action is not certain until it is announced, we will continue monitoring for any additional developments.
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.
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MY CRASH-PROOF, INFLATION-PROOF, & “TRIMFLATION TRADING ALGORITHM”
MY CRASH-PROOF, INFLATION-PROOF, & “TRIMFLATION TRADING ALGORITHM” HAS HELPED ME BAG 1340-OUT-OF-1581 WINNING TRADES DURING THESE CHANGING TIMES
My proprietary trading system has helped me show an 84.76% win rate as of today… and it has been picking winners for years.
Now, I’m opening this system to a group of traders just like you with this special inflation-beating special offer.
Join me while Fed Chair Powell Trims-Inflation for a Soft Landing (HA!) Recession
(A portion of Yellow Tunnel sales will go to directly help the Ukrainian people)
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SECTOR SPOTLIGHT
The market is set for an extended bearish run with a litany of still-to-be decided events that will certainly dictate market direction. With the FOMC decision, midterm elections, and uncertainty regarding geopolitical conflicts and events there is plenty of volatility ahead of us. The Fed will continue to fight inflation and the potential for relief rallies is always around. However, an uptick in volatility in the next few weeks makes one particular sector extremely appealing, and one I will surely be participating in.
In times of heightened and volatile market activity, I like finding a haven in inverse ETFs. These symbols are intended to short the day-to-day performance of their selected ETF and traditionally trade higher during times of volatility. As September winds down and we head into October, I fully expect the bear market to resume. When the market sells off, tech is usually the first to go. These mega-cap tech symbols dictate market direction so frequently that they are great indicators of where the market should go.
As we've seen in the past few weeks, the tech sector has shown us signs of weakness. Dips in shares of Apple, for example, impacted SPY and QQQ results as the market struggled for direction in August and early September. Keeping this in mind, and the notion that the bear market has resumed and will continue, I will be looking for ways to hedge my portfolio against upcoming volatility.
Inverse ETFs, like $PSQ which shorts the tech-based $QQQ, are what I'm looking to add to my portfolio this week. Within this sector, I've narrowed down one symbol I have not only found success with in the past in times like these but also one that is flashing strong signals via my A.I. toolset.
TRADE OF THE WEEK
This past week, we saw the market resume its downward momentum following revealing inflation data points, ahead of the September 20-21st FOMC meeting. In all likelihood, the bear market has resumed and is here to stay. An annual holiday rally is likely to offer some support towards the end of the year but for the most part, the focus will remain on inflation levels, Fed action, and geopolitical relations. China lockdowns and uncertainty regarding the conflict in Ukraine have weighed on the market before and could continue to do so.
With what appears to be two large interest rate hikes ahead of us, I am going to be returning to the well that is inverse ETFs - specifically those that are tied to the tech sector. There is a high probability we will retest or even break marginal lows this year and with this in mind, I've narrowed down the inverse ETF field to one symbol specifically.
ProShares Short S&P 500 ETF (SH) shorts the S&P 500 and is currently trading near the $16 level, below its 52-week high. The symbol is seeing positive movement following the latest CPI and PPI reports, posting gains of approximately 1% on both Thursday and Friday.
As I've outlined above, the market is oversold and has started its next leg down. The Fed is set to hike rates in an attempt to combat inflation which will surely inflict some volatility on what is already an oversold market landscape. Based on this, I like what I'm seeing for $SH in the weeks to come and will be adding it to my portfolio. But before I do that, let me verify with my priority A.I. models.
Looking at my Seasonal Chart, SH is flashing several encouraging signals. The 30-day and 50-day forecasts show an increased probability the symbol will trade higher, with the 50-day showing an impressively high forecast. Accuracy ratings are also trending in the right direction, with the symbol primed to make gains through any potential volatility. If this is the case, then SH could pop even better than forecasted. See SH Seasonal Chart forecast below:
The Stock Forecast Toolbox data shows that SH holds an outstanding model grade of “A” and has already topped my forecast tool's latest forecast. The symbol is trading above our predicted high level of $15.89 and looks to extend these gains if volatility continues. The predicted 10-day chart offers a glimpse into the upward momentum the symbol could have as soon as next week.
This week, I’ll be buying SH to hedge my portfolio.
This 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 84.87% 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 where 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 2022 trading portfolio.
Have a fantastic week, keep Ukraine in your thoughts and prayers, and let's make some great money together.